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Credit Card Reconciliation

How to reconcile a credit card statement with Book's

What are Credit Card Reconciliations?

The process of verifying the integrity of data between credit card statements or other associated reports from merchant services providers and a company’s internal financial records is known as Credit card reconciliations. The credit card reconciliation process starts with the comparison of transactions between credit card statements and the associated transactions within various accounts. It is a very important layer that assures credit card statements and balances are accurate. Then the role of the accountants comes, who investigate any sort of disagreement and plan course of action.

What is the Process for Credit Card Reconciliations?

The credit card reconciliation process refers to the credit card statements received initially or after the close of a financial period. The accountants go through each and every transaction on the credit card statement and match it to transactions in the internal system of the company. This includes both outbound credit card payments to suppliers and service providers and inbound credit card payments from customers. When the differences are found, investigation is performed to determine the appropriate corrective action.

The right approach may involve disputing transactions with the credit card processor, making journal entries to correct timing items or errors, or other actions to address transaction issues. All research performed and the information found and actions taken are saved for audit purposes. For big companies with big amounts of credit card transactions, the credit card reconciliation process is a essential way of financial data verification.

How Does Credit Card Reconciliation Software Work?

Credit card reconciliation software automates all steps in the credit card reconciliation process. It smartly imports entire data from both ERP or general ledger systems and credit card statements and files. It also compares and identifies the transactions details between the sources and if any differences are traced it will be further investigated by the accounting staff. This significantly speeds up the credit card reconciliation process and chargebacks recovery from merchant service providers. It exempts the manual burden of matching transactions for the accounting staff.

Features of Credit Card Reconciliation Software Features:

  • Automated transaction detail comparison

  • Workflows to ensure quick investigation of identified discrepancies

  • Templates and checklists to standardize the reconciliation process

  • Integrated storage of any supporting documentation

  • What Solutions Does BlackLine Offer for Credit Card Reconciliations?

    The BlackLine Transaction Matching product offers a complete credit card reconciliation solution. The transaction matching engine import data from all sources. This includes all major ERP systems, credit card statements and merchant service providers. It is especially designed to handle high-volume reconciliation and can rapidly match millions of transactions at the same time. It contains configurable matching rules that smoothly handle the most complex matching scenarios.

    If the difference are identified that require further analysis, the Transaction Matching product integrates with the BlackLine Account Reconciliations product to ensure that investigation is performed. It helps to overcome the difference to the proper account owner through automated workflows that includes centralized dashboards that provides full visibility into the status of the reconciliation. Customizable templates, checklists, and integrated storage for supporting documentation are also included to ensure the reconciliation processes is thorough and standardized across the organization.

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