Merchant Account Reconciliation

[Susan]

I'm looking for some best practices for reconciling a merchant account.
I currently have an account setup in quickbooks for my merchant
account, and move payments and credits there via the undeposited funds
(thus matching the CC batches that get sent out each night). From
there, I move the money into and out of my bank account based on the
statement I get from the bank.

Trouble is, my merchant account's statement (Paymentech) doesn't show
me anything useful for reconciling: they don't have a summary by day of
the money they actually transferred to/from the bank, and it's
challenging (to say the least) to decipher all the various fees etc
that are being charged. All I can reasonably infer are the opening and
closing RPP balances. So when there's a discrepancy between the account
I have in QB and the paymentech balances, it's nearly impossible to
find the source.

Any recommendations that would streamline the process?

 

[RobertM]

I'm looking for some best practices for reconciling a merchant account.
I currently have an account setup in quickbooks for my merchant
account, and move payments and credits there via the undeposited funds
(thus matching the CC batches that get sent out each night). From
there, I move the money into and out of my bank account based on the
statement I get from the bank.

Trouble is, my merchant account's statement (Paymentech) doesn't show
me anything useful for reconciling: they don't have a summary by day of
the money they actually transferred to/from the bank, and it's
challenging (to say the least) to decipher all the various fees etc
that are being charged. All I can reasonably infer are the opening and
closing RPP balances. So when there's a discrepancy between the account
I have in QB and the paymentech balances, it's nearly impossible to
find the source.

Any recommendations that would streamline the process?

I've had three different merchant accounts and they all lacked a clear,
easy to read statement. I can't say that my way is more correct than
your way. I receive payment and bypass the undeposited funds and enter
the charge directly into a simulated bank account with the name of the
merchant account. Then I make a transfer from the merchant account into
the checking account as the money shows up in the checking account. I
enter the difference between the sales and the deposit into a merchant
services expense account. Fortunately, they do send me a summary at the
end of the month letting me know the total of fees charged and the total
deposited so I can reconcile it. You're correct, it isn't easy.

Bob

 

[Ron Anderson]

I have no affiliation but I use the QuickBooks merchant services, processes
the card right from QuickBooks, then they deposit the entire amount and
debit for their discount. Makes record keeping a breeze, and their rates are
competitive.


--
Ron Anderson
A1 Sewing Machine
PO Box 60
Sand Lake, NY 12153
518-469-5133
http://www.a1sewingmachine.com

 

[Golden California Girls]

Well, right up until a couple of months ago QB did have a reasonably good
merchant statement. Then they went and mucked it up. They added the AMEX and
Discover charges to their statement of Visa and MC charges. You're thinking
that is a good thing, except each of them deposits separately so now you have to
drill down and subtract out AMEX and Discover from each days total, and total
them by hand so you can match your deposits to the mucked up statement!

 

[Tee]

I'm looking for some best practices for reconciling a merchant account.
I currently have an account setup in quickbooks for my merchant
account, and move payments and credits there via the undeposited funds
(thus matching the CC batches that get sent out each night). From
there, I move the money into and out of my bank account based on the
statement I get from the bank.

Trouble is, my merchant account's statement (Paymentech) doesn't show
me anything useful for reconciling: they don't have a summary by day of
the money they actually transferred to/from the bank, and it's
challenging (to say the least) to decipher all the various fees etc
that are being charged. All I can reasonably infer are the opening and
closing RPP balances. So when there's a discrepancy between the account
I have in QB and the paymentech balances, it's nearly impossible to
find the source.

Any recommendations that would streamline the process?

If your merchant takes its fee at the end of the month rather than directly
out of each payment prior to deposit then you can go the really lazy but
also accurate route. Wait until the bank statement arrives and use it to
know on what dates deposits were made from your merchant service. Keep all
of your cc payments in undeposited funds until that time. Your QB bank
balance won't be accurate but adding the Undeposited Funds amount to that of
the Bank amount should tell you how much money you have to work with.

I'd recommend talking to your merchant service provider. Tell them that
their statements are unclear and do not give accurate detail that is
necessary for your business. They might have a better statement although
they probably charge more for it. I've been seeing a trend in that these
companies will provide a basic balance summary "free" but charge you for a
detailed statement. IMO that's unethical but then it seems alot of business
service providers are unethical these days.

 

[RobertM]

If your merchant takes its fee at the end of the month rather than directly
out of each payment prior to deposit then you can go the really lazy but
also accurate route. Wait until the bank statement arrives and use it to
know on what dates deposits were made from your merchant service. Keep all
of your cc payments in undeposited funds until that time. Your QB bank
balance won't be accurate but adding the Undeposited Funds amount to that of
the Bank amount should tell you how much money you have to work with.

I'd recommend talking to your merchant service provider. Tell them that
their statements are unclear and do not give accurate detail that is
necessary for your business. They might have a better statement although
they probably charge more for it. I've been seeing a trend in that these
companies will provide a basic balance summary "free" but charge you for a
detailed statement. IMO that's unethical but then it seems alot of business
service providers are unethical these days.

I pay $10 per month for my cryptic merchant statement. Added to this, I
also have a check processing company. They are much better than the
credit card people. I have the same bank for my checking account and
merchant account. It would be nice if the merchant statement were as
detailed as my checking account statement. If they can do it for one
account, I don't know why they can't do it for the other account. I'd go
with QB merchant services, but I'm in the middle of a 3 year contract.
Merchant accounts typically run two to three years, so changing as soon
as something better comes along isn't always an option.

Bob

 

[Ron Anderson]

I do not accept those so I did not know that. Just one more reason not to
accept those high discount cards/.


--
Ron Anderson
A1 Sewing Machine
PO Box 60
Sand Lake, NY 12153
518-469-5133
http://www.a1sewingmachine.com

 

[HeyBub]

I do not accept those so I did not know that. Just one more reason
not to accept those high discount cards/.

95% is better than 0%.

If a company won't accept my American Express, I ask them what the
difference is between their store and a bait camp. Many, if not most, Amex
card holders are, like me, fiercely loyal. You dismiss us at your peril.

 

[GWB]

I do not accept those so I did not know that. Just one more reason not to
accept those high discount cards/.

If I can't put it on my Discover Card, you can keep it.

 

[RobertM]

If I can't put it on my Discover Card, you can keep it.

My business is too small to accept everything in sight so I went with
MasterCard, Visa, Discover, checks and cash. While it might be nice to
be able to accept whatever someone may have, it all comes at an expense
to the business. If I attempt to accommodate every customer, my prices
will put me out of the market for many other customers. I have nothing
personal against AmEx, Diners, nor anyone else. I go with what makes a
profit for me because that's why I'm in business. I fully realize I will
lose one or two customers in order to serve the other 2000.

Bob

 

[HeyBub]

My business is too small to accept everything in sight so I went with
MasterCard, Visa, Discover, checks and cash. While it might be nice to
be able to accept whatever someone may have, it all comes at an
expense to the business. If I attempt to accommodate every customer, my
prices
will put me out of the market for many other customers. I have nothing
personal against AmEx, Diners, nor anyone else. I go with what makes a
profit for me because that's why I'm in business. I fully realize I
will lose one or two customers in order to serve the other 2000.

If your potential customer wants to give you money, you should be prepared
to take what they offer, no matter the form. I know of one shop who, over
the years, has accepted (in addition to the cards listed above), Air Travel
Cards, food stamps, foreign currency from at least 13 different countries,
Traveler's Checks denominated in other than US dollars, money orders, rare
coins, and a third-party check drawn on a Romanian bank.

He did turn down a bearer bond (or so he says).

I was in a newly-opened bookstore some years ago when a customer put a dozen
hardcover books on the counter, maybe $200 worth of merchandise. The owner
of the store said: "I'm sorry, we don't accept American Express. I'd be
happy to take your Visa or Master Card, though."

To which the customer replied: "I wouldn't be caught dead with a Master
Card." And left the store.

I'm sure you'll re-visit your policy when a similar event takes place.
Someday it will.

 

[Ron Anderson]

In the dozen or so years I have been accepting credit card the issue has
come up only a very few times and the most of those had another card to pay
with. I carry and use most every day an American express card but I
seriously doubt I will ever accept it as a form of payment, and if you wish
to not do business with me that is fine.

--
Ron Anderson
A1 Sewing Machine
PO Box 60
Sand Lake, NY 12153
518-469-5133
http://www.a1sewingmachine.com

 

[michu3000]

Susan wrote:
> I'm looking for some best practices for reconciling a merchant account.
> I currently have an account setup in quickbooks for my merchant
> account, and move payments and credits there via the undeposited funds
> (thus matching the CC batches that get sent out each night). From
> there, I move the money into and out of my bank account based on the
> statement I get from the bank.
>
> Trouble is, my merchant account's statement (Paymentech) doesn't show
> me anything useful for reconciling: they don't have a summary by day of
> the money they actually transferred to/from the bank, and it's
> challenging (to say the least) to decipher all the various fees etc
> that are being charged. All I can reasonably infer are the opening and
> closing RPP balances. So when there's a discrepancy between the account
> I have in QB and the paymentech balances, it's nearly impossible to
> find the source.
>
> Any recommendations that would streamline the process?
>
I've had three different merchant accounts and they all lacked a clear,
easy to read statement. I can't say that my way is more correct than
your way. I receive payment and bypass the undeposited funds and enter
the charge directly into a simulated bank account with the name of the
merchant account. Then I make a transfer from the merchant account into
the checking account as the money shows up in the checking account. I
enter the difference between the sales and the deposit into a merchant
services expense account. Fortunately, they do send me a summary at the
end of the month letting me know the total of fees charged and the total
deposited so I can reconcile it. You're correct, it isn't easy.

Bob

my questions is I set up a Amex Merchant Bank but for some reason in the report it shows unclear transacction which is so annoying because I keep reconciliating the next month and these unclear transacction keep poping up. What shoul I do? PLEASE HELP!

 

[Deborah8050]

Online Credit Card Settlement Reports

Your Merchant Account service provider should have an online site where settlement reports are available that list each credit card transaction that makes up each of the batch deposits. You will have to register and obtain a user name and password so you can access the reports and then you can select the date you want the report for. The total of the transactions will equal the batch deposit for that date (if you have your account set up to be billed monthly for fees rather than the fee deducted from each transaction which your merchant account service provider can set up for you if necessary). This makes posting the payments much easier.