PSP reconciliation

Purpose

To ensure PSP-reported transactions align with internal accounting records by identifying:

• Transactions that fully reconcile
• Discrepancies requiring investigation
• Missing or delayed postings on either side

The workflow supports a consistent period-end close and ongoing operational monitoring (e.g., daily reconciliation).

Data sources

1. PSP transactional data: Deposits, withdrawals, and fees recorded in the PSP portal.
2. Internal back-office transactional data: Corresponding internal ledger or operational records.
3. Unmatched transactions from the previous period: Prior unmatched transactional data carried forward for matching at a later date.

Key processing steps

1. Clean transactional data

• Parse and normalize date formats
• Standardize and clean description text
• Categorize each transaction (deposit, withdrawal, fee)
• Ensure sign conventions (+ / –) are consistent across PSP and internal datasets

2. Prepare reconciliation sets

Two unified transaction sets are prepared for matching:

• PSP reconciliation set: new PSP transactions plus unmatched PSP transactions from the previous period
• Internal reconciliation set: new internal transactions plus unmatched internal transactions from the previous period

Unmatched transactions persist until resolved, providing full continuity across periods.

4. Reconciliation

• Match PSP transactions with internal records using transaction ID
• Include unmatched transactions carried forward from the prior period
• Flag items that match, mismatch, or require manual review

4. Exception identification and classification

Reconciliation results are classified into clear operational queues:

• Fully matched transactions: No action required.
• Matched with discrepancies: Transactions linked across systems but with differences (e.g. amount, fee, status).
• Unmatched PSP transactions: Transactions reported by the PSP but not recorded internally.
• Unmatched internal transactions: Transactions recorded internally but missing from PSP data.

5. Export and reporting

All result sets are combined and sent to an export node. These include:

• Matching statistics and reconciliation rates
• Matched transactions grouped by discrepancy type
• Unmatched transactions from both systems

Outputs

• Matching statistics: Match rates, exception counts, and high-level health indicators.
• Discrepancy report: Matched transactions requiring investigation, grouped by issue type.
• Unmatched transactions: PSP side and internal side.
• Reconciliation report: A complete, auditable transaction-level record supporting reviews, escalations, and close.