credit-card-reconciliationsWhat are Credit Card Reconciliations?
Credit card reconciliations are the process of verifying the integrity of data between credit card statements or other associated reports from merchant services providers and a company’s internal financial records. Credit card reconciliation begins with the comparison of transactions between credit card statements and the associated transactions within various accounts in a company’s chart of accounts. This is a necessary step to ensure that credit card statements and balances are correct and accurate. Accountants then investigate any discrepancies found and take necessary corrective action.

What is the Process for Credit Card Reconciliations?
The credit card reconciliation process is carried out when credit card statements are initially received or after the close of a financial period. Accountants go through each transaction on the credit card statement and match it to transactions in the company’s internal systems. This includes both outbound credit card payments to suppliers and service providers and inbound credit card payments from customers. When discrepancies are found, investigation is performed to determine the appropriate corrective action.

Corrective action may involve disputing transactions with the credit card processor, making journal entries to correct timing items or errors, or other actions to address transaction issues. A company may have a limited time to dispute transactions such as chargebacks with a merchant services provider, so speed and accuracy are paramount in this process.

All research performed, information found, and actions taken are stored for audit purposes. For companies with large amounts of credit card transactions, the credit card reconciliation process is a key step in the verification of financial data.

How Does Credit Card Reconciliation Software Work?
Credit card reconciliation software automates all steps in the credit card reconciliation process. It imports data from both ERP or general ledger systems and credit card statements or files. It then compares transactions details between these sources, and identifies any discrepancies so that they can be investigated by the accounting staff. This dramatically speeds up the credit card reconciliation process, and generally leads to an increase in the recovery of chargebacks from merchant service providers. It also removes the burden of manually matching transactions that is typically placed on th accounting staff.

  • Credit Card Reconciliation Software Features Include:
  • Automated transaction detail comparison
  • Workflows to ensure quick investigation of identified discrepancies
  • Templates and checklists to standardize the reconciliation process
  • Integrated storage of any supporting documentation


What Solutions Does BlackLine Offer for Credit Card Reconciliations?
The BlackLine Transaction Matching product offers a complete credit card reconciliation solution. The transaction matching engine can import data from almost any source. This includes all major ERP systems as well as credit card statements and merchant service providers. It is specifically designed to handle high-volume reconciliation and can rapidly match millions of transactions. It also contains configurable matching rules, to handle the most complex matching scenarios.

When discrepancies are identified that require analysis, the Transaction Matching product integrates with the BlackLine Account Reconciliations product to ensure that investigation is performed in a timely manner. This routes the discrepancy to the proper account owner through automated workflows. Including centralized dashboards that provide full visibility into the status of the reconciliation. Also included are customizable templates, checklists, and integrated storage for supporting documentation, to ensure that reconciliation processes is thorough and standardized across the organization

When correcting journal entries are required to address a discrepancy, the BlackLine Journal Entry product automates this portion of the process as well.

Please see below for articles related to credit card reconciliations.

Related Articles:
Account Reconciliations
Banking Reconciliations
General Ledger Reconciliations
Petty Cash Management and Petty Cash Reconciliation

For further information, feel free to call +44 (0)203 866 8800, send us an email, or download the BlackLine Overview brochure:

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