Many merchants know the feeling—matching credit card transactions from the initial customer sale to the final deposit in one's bank account can be very confusing. It can also get quite time-consuming. You might say it's enough to give any merchant the blues. Or even make one red with anger.
But whether you are frustrated or mad or both, you shouldn't blame yourself for your reconciliation difficulties. Because the truth is matching card transactions from sale to deposit can be hard. The reason for this is something that a lot of merchants are not fully aware of—credit card transactions are actually quite complex. You might not realize this because card transactions happen so fast and seemingly with such ease.
But the truth is it takes a lot of moving parts to make for a successful credit card transaction. There's the payment gateway. There's also the processor. There is what is called the acquiring bank. Plus, there are the banks where the merchant and the customer have their separate accounts. And of course, there are the credit card companies themselves like Visa and MasterCard.
All these intermediaries working together step by step make using and accepting credit cards possible. But this is also how things get complicated. Each of these intermediary steps is often conducted by separate vendors. Each of these vendors provides their own reports with their own formats and often their own fees. To get the full, complete picture of what goes on with a single transaction, a merchant has to wade through all of these different reports.
There's another problem: merchants who make sales through multiple sales channels often face a whole other layer of different vendors. For example, merchants who sell online, as well as in-store, tend to use a different merchant account for each of these sales channels. Historically, the need for a different account has to do with the perceived higher risk profile of e-commerce transactions versus what happens in a brick-and-mortar store. Ultimately this has driven the development of payment solutions specializing in just one of a merchant's sales channels.
Trying to track all of your credit card transactions from start to finish doesn't have to leave your head spinning. Or your accountant threatening to quit. What you need is an integrated payments platform.
An integrated payments platform combines the payment gateway with the payment processor in one, single seamless system. In other words, there's one less vendor meaning one less report for you to have to analyze and match against other reports.
An integrated platform also works across all sales channels, whether it be a brick-and-mortar store, a mobile phone, a land-line phone or snail mail. The advantage to this is there is now no longer a need for multiple merchant accounts. One merchant account does it all. And because you are only utilizing one merchant account, you no longer need to receive separate reports from all those various sales channels. Instead, a single report is generally all that is required to record and recognize all your sales and revenue.
There is another important advantage to an integrated platform—by combining multiple intermediaries, an integrated platform gives you the means to trace every transaction from its initial sale to the final deposit in your bank account from just one source. There is no need to collect different data points from multiple sources as there is with non-integrated payments platforms.
This ability to follow a transaction from end-to-end without mixing and matching information coming from various separate sources leads to much more robust data reporting. That is to say it leads to much more concise and detailed reports. And that adds up to a much easier reconciliation process.
Qualpay is an excellent example of the kind of robust reporting made possible by a fully-integrated, omnichannel payments processing system. With Qualpay, all your reports are in one place, making it simple to reconcile sales to deposits as well as from a deposit to sales. A merchant can search for an individual transaction and clearly follow it all the way through the entire processing cycle.
Better still, Qualpay follows the life-cycle of a transaction by moving from a batch report, displaying all transactions included in a batch for a given day and followed by a pending funding report, indicating all the anticipated funds due to be paid. Once payment is made, a reconciliation report displaying a summary of funding on a selected day and breaking down this information into batches being funded, any disputes, as well as any associated fees. Finally, a typical deposit report illustrating debits and credits to your bank account. You never lose sight of your money and your data.
An integrated dispute dashboard and notification messaging support transparency into sales payments being disputed by a consumer, and a response enabled interface enables quickly reviewing and challenging disputes. With Qualpay, you can clearly see where disputes exist, which transactions they apply to, and thereby decide what action needs to be taken to resolve them.
We also provide consolidated reporting for merchants that require multiple accounts for different business entities—Keeping data and information centralized for easy at-a-glance views.
In the end, the better your reconciliation process, the less time you need to devote to the often tedious accounting activities that go with running a business. And you know the old saying: Time is money. Time is also precious. And wouldn't you rather use that precious time engaging in the actual activities that define your business rather than handling paperwork? Of course you would! All the more reason to go with a fully-integrated payments processing system. You might say it is the gold standard in credit card processing.
Qualpay is a fully-integrated payments platform that utilizes the most up to date technology to reduce costs and streamline back-office operations. Its comprehensive system addresses and resolves the payment challenges businesses face, ensuring a stronger, more robust infrastructure that allows companies to focus on growing their business. Qualpay's reporting intelligence and data analytics allow customers to quickly and efficiently manage their payment finances, saving them both time and money. Simply put, Qualpay provides a better way to manage payments. For more information, please visit www.qualpay.com.