Merchant Balancing is the process of reconciling the merchant’s daily transactions with the deposits made to their bank account. This involves checking transaction records against bank statements to ensure that all transactions have been properly processed and any discrepancies are promptly resolved.
This is an important task for merchants to ensure that they are receiving the correct amount of funds for their transactions and to identify any potential issues with their payment processing. It can be a complex process, as it involves reconciling multiple data sources, including the merchant’s point-of-sale system, the payment processor’s records, and the bank statements.
It may also involve accounting for any refunds, chargebacks, or fees that may have been deducted from the deposits. Some merchants may use accounting software or hire a professional accountant to help with this process, while others may choose to do it manually.
Regardless of the method used, it is important for merchants to regularly perform merchant balancing to ensure the accuracy and integrity of their financial records.