Company credit cards
Reconcile each card to its monthly statement. The statement balance should equal the ledger balance after you account for charges and payments through the statement date. Categorize each charge, attach the receipt, and ask about anything you do not recognize. Pay the card from the operating account and record the payment as a transfer, not an expense, since the charges were already recorded.
Rewards and cash back are real income or a reduction of cost. Record them when received, so they are not lost inside bank deposits.
Processor payouts
A payment processor sends deposits that net out fees, refunds, and sometimes held funds. If you record only the deposit, sales are understated and fees vanish. Instead, record gross sales, then the fees, refunds, and chargebacks, so the net equals the deposit.
Use a clearing account. Post the processor's report to the clearing account, then match each bank deposit against it. The clearing balance should be near zero except for payouts in transit. A balance that grows means something is unrecorded.
Refunds and chargebacks
Refunds reduce sales and return money to the customer. A chargeback is a dispute filed with the card issuer. The funds are pulled back, usually with a fee, until the dispute is resolved. Record the reversal and the fee, track open disputes, and recognize a win when the money returns. A rising chargeback rate is an operations problem, and the books are where it shows first.
Reserves and holds
Processors sometimes hold a portion of funds as a reserve against refunds and disputes. That money is yours but not available. Record the held amount as a receivable from the processor, separate from cash, and release it when the processor does. If you ignore reserves, cash looks lower than it is and your forecast is off.
Duplicate imports
Bank and card feeds sometimes import the same transaction twice, especially after reconnecting. Compare the ledger total with the statement, sort by date and amount to find repeats, and delete the duplicate. Reconciling each month keeps the problem small.
Frequently asked questions
Where do processor fees go?
As an expense, separate from sales, so you can see the cost of accepting payments.
Should card payments be expenses?
No. The charges are the expenses. Paying the card is a transfer that settles the liability.
How often should I reconcile?
Monthly at a minimum. Businesses with high volume should check processor payouts weekly.