Worked example
Net processor settlement
Payment
$4,850.00 bank deposit
Invoice records
Gross customer payment $5,000.00
Processor report fee $150.00
Review result
Net amount explained
The processor report supports the difference. A reviewer still confirms the invoice application and accounting treatment.
Identify the settlement model
Read the processor settlement report and fee schedule. Determine whether fees are netted from each deposit, netted from a batch, or withdrawn in a separate transaction. Also confirm the settlement timing and reserve behavior.
Do not assume a short bank deposit is a fee. Customer deductions, refunds, chargebacks, withholding, and data errors can produce similar differences.
Reconcile three layers
Compare the customer payment or payments, processor settlement, and bank deposit. The customer application may use the gross amount, while the bank receives the net amount and the fee is handled separately under the business's accounting policy.
For a batch, total all included gross payments, subtract documented fees and other adjustments, and compare the result with the posted deposit.
- Gross customer receipts
- Refunds, disputes, reserves, or adjustments
- Documented processor fees
- Net bank deposit
Require evidence for the difference
Attach or reference the settlement identifier and report row that explains the fee. A consistent historical percentage can be a useful signal, but it is not proof for a new transaction.
If the report does not explain the difference, keep the item as a review exception and contact the processor or investigate the source batch.
Preserve invoice and bank relationships
Link the gross customer receipt to the invoice application and the settlement to the bank deposit through source identifiers. This avoids changing the customer payment to match the net bank amount.
The exact ledger entries depend on the accounting system and company policy. A reviewer should verify the posting rather than relying solely on the matching tool.
Watch for duplicates and timing
Processor exports and bank feeds may show different representations of the same money movement. Source lineage and transaction IDs prevent double counting.
Settlement dates may lag customer payment dates and cross a month end. Document the cutoff procedure and reconcile timing items consistently.
Key takeaways
- Learn whether fees are netted or withdrawn separately.
- Tie gross receipts, settlement, fees, and net deposit.
- Use settlement evidence, not a guessed percentage.
- Keep the gross invoice application distinct from bank cash.
- Document timing and source lineage.
This material is general educational information, not accounting, tax, legal, or investment advice. Verify financial records and consult the appropriate professional for decisions that require judgment.