Reconciliation

Reconciliation in the context of payment transactions is a critical financial process where merchants verify and reconcile their records of payment transactions with those held by card issuers or banks. This process ensures accuracy and consistency in financial records and helps identify any discrepancies that might arise from transaction processing errors, fraudulent activities, or administrative mistakes.

Key Aspects of Reconciliation Include:

The reconciliation process is essential for maintaining the integrity of a business’s financial data, aiding in accurate financial reporting, and helping to secure the trust of stakeholders. It also plays a crucial role in fraud prevention by enabling timely detection of unauthorized or fraudulent transactions, thereby protecting the financial interests of both merchants and consumers.