Account balance changes are influenced by multiple factors, including settlement cycles, fee deductions, and reserved funds. When account balances do not match expectations, the calculation rules and investigation steps in this article can help identify the source of discrepancies and verify the actual settled amount for each transaction.
Viewing Fund Flow
Transaction funds are processed in the following sequence.
- Record incoming payments: Funds enter the pending balance after a customer completes payment.
- Apply deductions: The system deducts fees and allocates reserved funds based on account rules.
- Complete settlement: Funds move to the available balance after the settlement cycle ends.
- Apply adjustments: Refunds, chargebacks, or adjustments may affect pending or available balances.
Understanding Transaction Amount Calculation
Each transaction follows a standardized structure to determine the final settled amount.
- Transaction amount: Original amount paid by the customer.
- Fee: Automatically deducted based on payment method and rate.
- Reserved amount: Funds held according to account rules.
- Net amount: Amount entering the settlement process, calculated as: Net amount = Transaction amount − Fee − Reserved amount.
For example, if a customer pays 100 USD, the system deducts fees and reserved funds. The remaining amount enters the settlement process and moves to the available balance after the cycle ends.
Assessing Settlement Cycle Impact
- Confirm settlement cycle: Funds are processed based on the configured cycle, for example T+X.
- Confirm settlement timing: Funds are added to the available balance only after the cycle ends.
- Compare transaction timing: Different transaction times result in different settlement dates.
Assessing Reserved Fund Impact
Reserved funds affect the availability of transaction amounts.
- Review reserve allocation: A percentage or fixed amount is held based on account rules.
- Confirm fund status: Reserved funds are not included in the available balance during the hold period.
- Verify release timing: Funds are released automatically after the configured cycle ends.
Identifying Refund and Chargeback Impact
- Identify refund impact: Refunded amounts are deducted from the pending or available balance.
- Identify chargeback impact: Chargebacks reverse funds and may include additional fees.
- Confirm timing impact: The stage at which the event occurs determines which balance is affected.
Investigating Negative Balance
A negative balance occurs when deductions exceed the available funds.
- Refund overages: Refunds exceed the current pending balance.
- Chargeback deductions: Disputes or chargebacks reduce account funds.
- Fee deductions: Fees or adjustments reduce the balance.
Explaining Report and Balance Differences
Differences may exist between the balance page and reconciliation reports.
- Data scope: Reports are period-based, while balances are real-time.
- Settlement status: Pending funds are not included in the available balance.
- Reserved funds: Some funds remain held during the reserve period.
- Fee differences: Fees or currency conversion may affect final amounts.
Investigating Fund Discrepancies
When balances do not match expectations, work through the following checks in order.
- Confirm settlement cycle: Verify whether the transaction is still within the settlement period.
- Verify fees: Ensure deducted fees match configured rates.
- Review reserved funds: Identify funds that have not yet been released.
- Identify refunds and chargebacks: Confirm whether any funds were reversed.
- Compare report data: Use reconciliation reports to locate the final discrepancy source.
Final settlement amounts are affected by settlement cycles, fee deductions, reserved funds, and refunds. Reviewing transaction records and reconciliation reports together helps identify the source of discrepancies and complete financial reconciliation.