Acquirer Batch reconciliation process in Credit Card Payments

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The below are the general guidelines followed by acquirer for Batch reconciliation or Debit reconciliation in Credit card payment processing Systems.

A merchant statement is sent to merchants daily, weekly or monthly in accordance with the Agreement. This shows the total of all Transaction batches by way of a Summary of Charges (“SOCs”) that we have processed on your behalf in the previous settlement period for Credit Card and Debit Card Transactions, the amount credited to your Merchant Bank Account, and the merchant service charge that is due for payment.

Any Transaction batch received by us that is found to be incorrect or invalid will be advised to you separately. Based on the payment summary , your Merchant Bank Account will either be credited or debited, in normal circumstances, shortly after you receive your merchant statement, with the payment amount shown on your merchant statement. A sample merchant statement appears on the left-hand page.

Below is an explanation of some of the key information that will appear on your merchant statement.

BILLING PERIOD: Shows the billing period covered by the statement.

PAYABLE: Shows the final amount that will be debited from your account. It also shows the last four digits of the Merchant Bank Account number from which the amount will be debited.

SUMMARY: Transactions Summary – this is a summary of transactions we have settled to you by transaction type, number and amount. The Total GBP Amount is the amount we deposit to your Merchant Bank Account. Fees Summary – this is a summary of fees total payable by you.

REBATES: Shows rebates made on your account during the month, for example Dynamic Currency Conversion (DCC).

CARD FEES: Description – this section shows the total Merchant Service Charges Fee (MSC) payable by you by card type and volume of transactions. The base rate agreed for each card type is under the column “Discount Rate”. Any card types charged per item will be displayed under the column “Per Item Rate”. Exception Description – an exception fee is a charge that occurs for Business Card transactions and for transactions which were downgraded. Downgraded transactions are generally higher risk credit or debit transactions and include nonChip and PIN, manual keyed and non-secure internet transactions. These transactions will be listed on your Merchant Statement as Business Cards, Credit Exception, Maestro UK Debit Exception or Visa Debit Exception. OTHER TRANSACTION FEES: Any other fees applicable to your Merchant Bank Account will appear in this section.

ACTIVITY FEES: This section shows fees applicable to your Merchant Bank Account for Example; Authorisations by card type (IP AUTH).

OTHER FEES: Other fees such as terminal rental will be included in this section and here relevant, VAT will be charged in addition.

CHARGEBACKS /REPRESENTMENTS: Any transactions still subject to chargeback or representment within the billing period are set out in this section.

ADJUSTMENTS: This section details any adjustments required to be made to your Merchant Bank Account within the billing period.

DEPOSITS: This section shows all transactions received (“Batch”) during the billing period which have been processed by acquirer. The “Funded Amount” is the amount that will be credited to your Merchant Bank Account. The “Payment Number” and the “Funded Amount” figure will correspond with the reference and amount that appears on your bank statement.


Author: Srini

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