Confirmation Letter

A confirmation letter in the context of payment processing is a formal communication sent by a payment processor to a merchant. This letter serves to verify and confirm the details of batch deposits made by the merchant, typically on a daily or weekly basis. The purpose of this letter is to ensure both accuracy and transparency in the financial transactions processed between the merchant and the processor.

The confirmation letter typically includes:

This document is crucial for merchants as it helps in reconciling their own records with those reported by the processor. It acts as a safeguard against any potential errors in transaction processing or deposit handling that could affect the financial standing of the business. Moreover, it provides a paper trail that can be useful for auditing purposes and dispute resolution.

Merchants typically review these confirmation letters carefully to verify that all transactions have been accurately captured and deposited by the processor. Any inconsistencies found in the confirmation letter should be addressed promptly with the processor to ensure financial integrity and to rectify any potential errors in a timely manner.