Adjustment

An adjustment in the context of payment processing is an action taken by an acquiring bank to correct an error associated with a transaction. This error might stem from various issues, such as a duplicate charge or a dispute raised by a cardholder. To resolve such discrepancies, the acquiring bank, which processes payment transactions on behalf of merchants, will either debit or credit the merchant's Demand Deposit Account (DDA) for the appropriate amount. This ensures that any errors in the transaction process are rectified, maintaining the integrity of the financial records and relationships involved. Adjustments are a fundamental aspect of managing payment disputes and discrepancies, helping to sustain the accuracy and reliability of the payment processing system.