Payment Gateway Reconciliation

By Ross Garrett in Finance, Enterprise Integration Posted Jan 25, 2018

Products like QuickBooks and Netsuite are among the popular choices for business accounting - and for payment gateways and processors. Your merchant customers, however, are looking for solutions that will synchronize and reconcile sales and transaction data into these or similar systems. Contrary to popular belief, providing this real-time reconciliation needn’t be cost prohibitive, time consuming or difficult to maintain.

Why Customers need Reconciliation

Reconciliation is the process of confirming that the balance in Accounting systems matches the balance in the Statement from the payment gateways and merchant accounts - along with all available transaction data that might be required (E.g. Tax).

Reconciliation helps your customer’s accounting team confirm that all the amounts appearing in the statement are brought into their book of accounts and can provide a clear explanation for any unreconciled items.

Problem: The trouble with Reconciliation

For merchants with a large number of invoices and orders processed on a daily basis, payments are initiated from any number of online and offline sources and processed by your gateway. The gateway transfers the final amount (as a lump sum) at the end of the day or after a few days depending on the gateway, with no correlation to the original invoices or orders for which payments are processed. The problem statement is as follows:

How do we reconcile the invoices/transactions with the bank statement when one lump sum amount is deposited in the Bank Account (when you do not know which individual invoices and orders make up the lump sum amount)?

Solution: Real-time Payment Reconciliation

Cloud Elements API integration platform can be used to enable realtime reconciliation of the payment transactions into Quickbooks, Netsuite, or many other enterprise ERP systems - that can include the transaction ID and transaction details captured on the gateway. Merchant customers can then choose the data they need and the format required to properly integrate with their accounting system of choice. 


Then as usual, when all payments and refunds are reconciled between the Gateway Statement and Gateway Bank account, the lump sum amount pending to be transferred in the Gateway Statement shall be transferred from the Gateway Bank Account to your actual Bank Account.

Benefits to you and your customers

Integration is becoming a key requirement for merchants when they evaluate and select and payment gateway. Businesses are looking for ways to reduce overheads and manual processes that can often be prone to error.

As a payment gateway provider, out-of-the-box integration capabilities can help you improve or maintain margin, create a stickier relationship with merchants and even reduce risk.

With the Cloud Elements catalog of more than 130 pre-built connectors to the leading enterprise SaaS and On-prem apps, you can easily synchronize and reconcile data in realtime, directly into your customers’ accounting software.

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