When the Indian government started the cashless India project both customers and businesses started moving more and more toward cashless methods of payment. One such common method of making cashless purchases is using credit and debit cards. The lack of dealing with currency or change on the part of the suppliers makes the transaction procedure a whole lot simpler. Although, when a large number of transactions take place at a fast pace it is very challenging to verify these amounts with the bank. Verifying these transactions is crucial since sometimes money is not credited to the vendor’s account owing to faults including network issues, technical difficulties, or fraud. However, it is not simple to have the bank confirm these transactions as it takes time to immediately extract and compare data. To solve this issue, Cointab has created an automatic reconciliation system. The system does Reconciliation of Card Transactions Instore easily and accurately. It automatically gathers data, checks it against reports, and generates an output that is simple to understand. This makes it simpler for the vendor to examine and keep tabs on all payments received via a debit or credit card.

Credit card Transactions

Batches of authorized transactions are sent by retailers to their payment processors. The payment processor sends transaction information to the card associations, which then coordinate the necessary debits with the network’s issuing banks. The sum of the transactions is charged to the cardholder’s account by the issuing bank.

Debit Card Transactions

They function similarly to credit cards, but unlike credit cards, the funds for the purchase must be in the cardholder’s bank account at the time of the transaction and are sent right away to the merchant’s account to cover the cost of the purchase.

Reports Required for Reconciliation

Client Sales Report

This report contains the sales data of all different stores of a vendor. It contains the sum of the sales done according to the payment method used. The sum of card sales will be used for the reconciliation process.

Bank Statement

The bank statement contains all the transactions involving the payments towards the bank account. All debits and credits in this account will be stated in this report. Only the payments reflected by cards will be used for the reconciliation process. 

Reconciliation of Card Instore (Individual Stores)

Reconciliation is necessary to keep an accurate track of the payment that is being received in the bank. The system links the two reports and compares the summaries of both and generates a result. This result is displayed in a very easy-to-read format. Merchants can easily determine and keep a track of the payments received and can also find out where they haven’t received the payment accurately and if some payments are yet pending.

The above result displays the data of every individual store. The system summarizes the data and shows the following

Credit Card Sales:

The total sales whose payments were received via a credit card are recorded here

CC Sales HDFC

For Payments done via an HDFC credit card, the amount reflects this line item.

CC Sales (AMEX)

Payments are done using an American Express Card.

Sales Variance

The total credit card sales are subtracted by HDFC and AMEX sales and are recorded in this line item.    

Deduction (HDFC)

 When paying by HDFC credit card there are some charges

Calculated Net Received

The total amount of Payments that should be received after necessary deductions are recorded in this line item.

Settlement (HDFC)

The settlement received via HDFC for the payments done via the HDFC credit card is recorded here.

Reconciliation of all Cards Instore (All stores)

After individual store reconciliation, the system then sums up the total transaction amounts and then verifies the total amount in the bank statement. This helps the merchant keep a track of the total payments received, not received, and even pending. It helps in analyzing net receivables and net deductions.

Total Card Sales

In this line item, the total card sales for one month from all the stores are recorded.

Total Credit Card Sales

The total Credit card Sales for one month from all the stores are recorded here.

Amount Received as per Bank Statement

Amount that is received in the bank statement as Card payments is recorded here.

Bank Variance

The difference between the total card sales and the amount received in the bank Statement are recorded here.

Cointab does Reconciliation of Card Transactions Instore. Using Cointab can greatly simplify the reconciliation procedure, as demonstrated in the results above. A merchant can automate the data upload and easily and readily view the results as and when he wants to. The results help the merchant keep an accurate tab on the net income of each store. It also helps him know if they are suffering unnecessary losses and can fix these errors immediately. 

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Reconciliation