Payment reconciliation for online customer payments can be tedious and challenging without the right reconciliation tool.
If you own an online business and are struggling with payment reconciliation, you’re not alone.
For online businesses, reconciling the cash inflow of customer payments and payment gateways gets complicated fast, and reconciling these transactions in Excel is not a scalable, efficient way to operate. When online/eCommerce businesses accept credit card payments, they have the added challenge of reconciling large volumes of transactions while also accounting for credit card merchants’ fees and adjustments.
Read on to learn more about the challenges of payment gateway reconciliation.
What You Need to Know About Payment Reconciliation and Payment Gateways
Today, more customers than ever before are taking the digital route when purchasing their products. When customers make online purchases, their payments go through a payment gateway which eventually reaches the merchant.
A payment gateway is a tool that transfers credit card details and payment information from a customer to a merchant. Examples of payment gateways include PayPal, Apple Pay, Amazon Pay, and more.
Businesses use online payment gateways for payment reconciliation, which provide merchants with detailed records of transactions made by customers. Payment reconciliation for PayPal or other payment gateways has its own settlement cycle, which means there is time between when a customer pays for something and when the merchant receives the money.
How Do Payment Gateways Work?
When a customer makes a payment, the money goes from the customer’s bank account through a payment gateway to the merchant.
Payment gateways help prevent fraud and keep sensitive financial details secure. They validate a customer’s card details and ensure that the customer has the funds so the merchant gets paid.
So how do you reconcile these gateway payment transactions?
Without the right tools or system, payment reconciliation through gateways like PayPal or eBay can be challenging. The right payment reconciliation tool can provide weekly or monthly reports for gateway payment reconciliation. These reports include a list of all the transactions made throughout the period, including the amount, date, and time of the transaction.
As more merchants turn to gateway payments, payment reconciliation should be a top priority. Online payments involve many different parties, and a delay from the parties involved could lead to a delay in payment reconciliation.
The Challenges of Gateway Payment Reconciliation
Credit card reconciliations are a bit trickier to perform than bank account reconciliations. It is difficult to confirm that what was submitted to your gateway is actually received in your bank account.
Credit card settlement timing issues, data integration issues, and returns can all present challenges when reconciling deposited receipts in your bank account. Credit card transactions are often processed in batches or lump sum payments, which is time-consuming and frustrating.
But with the right tool, you can eliminate this tedious process.
Our Bank Reconciliation Tools Can Eliminate the Manual Process of Reconciling Online Customer Payments
Nolan’s Bank Reconciliation tools can help simplify the payment reconciliation process for online businesses. Our tools allow you to match and reconcile credit card merchant transactions just as it does for bank-based transactions.
Our tool allows you to make sure the revenue you recognize is what you get from the credit card processor at a detailed level while allowing you to set up automated rules that easily match and reconcile thousands of transactions in minutes using the unique Transaction ID. You can also set up automated posting rules to account for credit card merchant fees and adjustments.
Our easy-to-use tool allows businesses to batch reconciliation into an actual bank deposit so everything is recorded and easily traceable.
Learn more about automating and simplifying your bank reconciliation processes within different systems below:
Providing You With Business Solutions to Help You Reach Your Business Goals
Nolan Business Solutions provides you with cash reconciliation tools that are flexible, powerful, and scalable. We offer some of the best solutions in the marketplace specifically designed to provide you with the right solution for your current business requirements and future plans. We can guide you through strategy, development, training, and support to help your business grow.
If you're interested in improving your business, we can help you unlock your growth potential.
Nolan Business Solutions is a NetSuite solution provider and a certified SuiteApp developer that can help you grow your business, reduce IT costs, and more. Contact us today to learn more about how NetSuite can help you improve your business.
You can also learn more about what you can expect from a free Demo with Nolan Business Solutions here.
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