# Balance transactions

This topic describes balance transactions. Balance transactions are created automatically based on gateway account financial settings or matching fees. To configure these settings in the Rebilly UI, see [Fees](/docs/settings/fees) and [Configure financial settings](/docs/settings/manage-payment-gateways#configure-financial-settings). To view the API docs, see [Balance transactions](/catalog/all/balance-transactions).

## Type

The following are all balance transaction types.

| Type | Description |
|  --- | --- |
| `charge` | Created when a `sale` or `capture` transaction is approved and gateway account financial settings are defined. |
| `refund` | Created when a `refund` transaction is approved and gateway account financial settings are defined. |
| `buy-fee` | Created when a transaction is processed for all matching fees of type `buy`. |
| `sell-fee` | Created when a transaction is processed for all matching fees of type `sell`. |
| `risk-reserve` | Created when a `sale` or `capture` transaction is approved for all matching risk reserve financial settings of a gateway account. |
| `risk-reserve-release` | Created when funds that are reserved by a `risk-reserve` balance transaction are released. |
| `reverse` | Created when settled balance transaction funds are reversed during balance recalculation. |


## Settlement time

The settlement time value defines the date and time of the expected settlement.

## Settlement amount

The settlement amount defines the balance transaction settlement amount, and is recorded at the time of settlement.

## Settlement rate

The settlement rate is the exchange rate of the settlement when a balance transaction settlement currency does not match the transaction currency.

## Parent balance transactions

Some balance transactions types may relate to parent transactions. For example, a `risk-reserve` relates to a `charge`, and a `risk-reserve-release` relates to a `risk-reserve`.
Balance transactions of the `reverse` type can relate to any other balance transaction types.

## Balance recalculation

Balance recalculation is performed when the transaction amount or status is changed and a transaction balance already exists.
This occurs during transaction reconciliation when status or transaction amount discrepancies are found.
During recalculation, existing balance transactions are re-evaluated and unsettled balance transactions are removed.
Reverse balance transactions are created for every settled balance transaction, with the same settlement amount as the settled parent balance transaction amount.

## Related topics

- [Balance transactions](/docs/dev-docs/balance-transactions)
- [Configure balance transactions](/docs/settings/manage-payment-gateways#configure-financial-settings)
- [View balance transactions](/docs/data-tables/manage-payments#view-balance-transactions)