(3)Settlement Processing Assets and Liabilities

In certain markets, the Company is a member of various card networks, allowing it to process and fund transactions without third-party sponsorship. In other markets, the Company has Member Banks for whom the Company facilitates payment transactions. These arrangements allow the Company to route transactions under the Member Banks’ control and identification numbers to clear card transactions through card networks.

Funds settlement refers to the process of transferring funds for sales and credits between card issuers and merchants. The standards of the card networks restrict non-members from performing funds settlement or accessing merchant settlement funds and, instead, require that these funds be in the possession of the Member Banks until the merchant is funded. However, in certain markets and in accordance with the terms of the Company’s Bank Sponsorship Agreements with its Member Banks, funds settlement generally follows a net settlement process.

Timing differences, interchange expense, Merchant Reserves and exception items cause differences between the amount the Member Banks receive from the card networks and the amount funded to the merchants. Settlement processing assets and obligations represent intermediary balances arising in the settlement process.

A summary of these amounts is as follows:


	September 30,		December 31,
	2019		2018
	(In thousands)
Settlement processing assets:
Receivable from card networks	$	219,654	$	195,817
Receivable from merchants		90,552		52,513
Totals	$	310,206	$	248,330

Settlement processing obligations:
Settlement liabilities	$	(375,552)	$	(320,492)
Merchant reserves		(92,224)		(107,836)
Totals	$	(467,776)	$	(428,328)