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Credit Card Reconciliation


What is a Credit Card Reconciliation?

Mostly all businesses in this day and age, accept credit cards as a payment option. So if your business does the same, you’ll need to reconcile credit card statements against the company’s books. Each month, the bank that handles the credit-card sales for your business will send you a statement listing the following:

  • All your company’s transactions for the month.
  • The total amount your company sold through credit-card sales.
  • The total fees charged to your account.

What is a charge-back?

Chances are, you might find a difference between the Amount sold through credit-cards on your Books and on the Credit Card Statement. The most common reason is a charge-back. A charge-back might occur when a customer bought an item from you and paid you through a credit, and at a later time, disputed that sale with his credit card company. Unless you reconcile your Books with the Credit Card Statement, you would never be able to record this charge-back, and your Account Balance would be inaccurate.

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