Multi-currency processor reconciliation: charges, conversions, and payouts

Record the customer charge currency, processor balance currency, payout currency, and bank account currency. These may differ. Obtain transaction and settlement detail that connects them.

Use the company's approved accounting policy for recording and remeasuring foreign-currency amounts. Ask the reviewer to distinguish the processor's commercial conversion from the ledger's reporting treatment.

In each relevant original currency, explain charges, refunds, disputes, fees, and outstanding funds. Avoid combining different currencies into one total without a translation basis.

A processor balance can agree in euros while the dollar ledger still needs an exchange-rate adjustment. Both views should remain traceable.

Retain converted amount, rate, fee, date, and resulting payout. Match the payout to the bank and identify charges deducted separately.

For illustration, €1,000 converted at $1.10 per euro produces $1,100 before fees. A $15 fee leaves $1,085 if no other adjustments apply. Recording the bank deposit as the original gross sale would lose the conversion and fee explanation.

A refund processed at another rate can differ from the original reporting-currency receipt. Have the accountant assess its treatment under the policy rather than assigning the difference to sales automatically.

Review unsettled funds at cutoff and retain the applicable conversion or remeasurement support. Explain balances still waiting for payout.

Save source exports, original-currency reconciliations, conversion details, ledger entries, and bank matches. Give unresolved differences an owner.

Check integration mappings when the same discrepancy recurs. The final schedule should explain what customers paid, what the processor held or deducted, and what reached the bank, with exchange effects visible to the reviewer.

Check whether the processor deducts fees in the charge currency or payout currency. Use the actual settlement detail rather than applying a generic percentage. A fee booked in the wrong currency can leave both the expense and clearing balance misstated.