Reconciliation
Reconciliation is the process in which incoming payments are matched automatically or manually with outstanding invoices, orders or receivables.
Reconciliation
Reconciliation refers to the systematic matching of incoming payments with open items — invoices, orders, or receivables. The goal is to uniquely assign every incoming payment to a transaction and to identify discrepancies (missing payments, double payments, fee deductions).
For online merchants, reconciliation involves matching the PSP payout with accounting: The PSP bundles transactions and pays out the net amount (after deducting transaction fees, refunds, and chargebacks) to the merchant's account. You, as the merchant, must break this payout down into its individual transactions and post them correctly.
On marketplaces, reconciliation becomes complex: Payments must be split among multiple sellers, commissions deducted, refunds booked proportionally, and chargeback costs allocated. Automated reconciliation via PSP exports, webhooks, and camt messages (ISO 20022) saves you significant manual effort here.
Reconciliation examples
An online shop imports the daily PSP payout file into its accounting system and automatically reconciles 150 transactions with the open orders.
A marketplace uses the PSP's webhooks: with every status change (payment confirmed, refund processed, payout executed), the accounting is automatically updated.
A fiduciary receives the monthly reconciliation report: gross sales CHF 50,000, minus CHF 850 transaction fees, CHF 200 refunds, net payout CHF 48,950.
Reconciliation FAQ
What is reconciliation in payment processing?
Reconciliation is the matching of incoming payments with open invoices or orders. The goal: to assign each payment to a transaction and identify discrepancies (fees, refunds, missing payments).
How does reconciliation work with a PSP?
The PSP provides transaction exports, payout reports and webhooks. Merchants import this data into their accounting system and reconcile it with open items — automated or manually.
What is the difference between gross and net payout?
The gross sum is the total amount of all transactions. The net payout is what you actually receive after the deduction of transaction fees, refunds and chargebacks.
Do you need reconciliation as a small online shop?
Yes, at the latest for your tax return and annual financial statements. The PSP payout on the bank account must match the individual transactions. Modern PSPs provide exports that common accounting tools (Bexio, Abacus) can import directly.
