Version 1.0
Prepared by: @Lorraine Sebata
Approved by: @Marcia Wilkinson
Reviewed date: 2025-09-13
Next review date: 2026-09-11
This Standard Operating Procedure (SOP) is established to ensure the accurate and timely reconciliation of credit card payment receipts from Fidelity Bank with the company's internal records in the Accounting Software (Xero). Its purpose is to identify and resolve discrepancies promptly, ensure all customer credit card payments are correctly recorded, minimize financial errors, and maintain the integrity of cash and accounts receivable balances.
This SOP applies to all Accounting Team members responsible for processing and reconciling credit card payment receipts, specifically from Fidelity Bank for Easyterms. This includes daily, weekly, or monthly reconciliation activities to ensure all funds processed via Fidelity Bank's credit card services are accurately reflected in the company's financial records.
Accounting Team Member: Primarily responsible for accessing Fidelity Bank statements/reports, comparing them with Xero records, identifying discrepancies, and initiating resolution.
Fidelity Bank: Processes credit card transactions and provides daily/periodic settlement reports and bank statements.
Anywhere Gateway/Processor (if separate from Fidelity Bank for processing): Provides transaction details if Fidelity Bank is only the acquiring bank.
5.1.1 Log into the Fidelity Bank online portal using secure credentials.
5.1.2 Navigate to the section for credit card transaction reports or merchant statements.
5.1.3 Download the daily/periodic settlement report (or statement) that details all credit card transactions processed and the net settlement amount deposited into the company's bank account. This report should include transaction dates, amounts, and any associated fees.
5.2.1 Log into the Accounting Software (Xero).
5.2.2 Access the 'Receive Money' transactions that were recorded for credit card payments during the corresponding period. These transactions should initially be posted to a clearing account or directly to the Accounts Receivable account.
5.3.1 Step 1: Reconcile Gross Transactions:
Compare the total gross amount of credit card transactions reported by Fidelity Bank with the total 'Receive Money' transactions recorded in Xero for credit card payments for the same period.
Identify any individual transactions present in one system but not the other, or where amounts differ.
5.3.2 Step 2: Reconcile Net Settlement Amount:
Compare the net settlement amount (total gross transactions less Fidelity Bank fees) reported by Fidelity Bank with the actual deposit amount received in the company's bank account as shown in Xero's bank feed.
Ensure that any Fidelity Bank processing fees are correctly identified and recorded as an expense in Xero.
5.4.1 For any discrepancies identified in either the gross transaction reconciliation or the net settlement reconciliation, investigate the root cause. Common discrepancies include:
Missing 'Receive Money' entries in Xero.
Incorrect amounts recorded in Xero.
Transactions processed by Fidelity Bank but not yet reflected in Xero.
Differences due to chargebacks, refunds, or adjustments not yet recorded.
Incorrect calculation or recording of Fidelity Bank processing fees.
5.4.2 This may involve:
Reviewing individual transaction details on the Fidelity Bank report.
Cross-referencing with customer payment records (if available).
Checking Xero entries for data entry errors.
Contacting Fidelity Bank merchant support for clarification on specific transactions or settlement amounts.
5.4.3 Make necessary adjustments in Xero to correct errors (e.g., adding missing transactions, correcting amounts, recording fees), ensuring proper documentation and approval.
5.4.4 Document all investigations, communications with Fidelity Bank, and resolutions for audit purposes.
5.5.1 Once all transactions are matched and discrepancies resolved, the balance of any credit card clearing accounts in Xero should be zero or reflect only legitimate outstanding items.
5.5.2 Ensure the net deposit from Fidelity Bank is correctly matched and reconciled in the bank account within Xero (as per FIN-SOP-008).
5.5.3 Generate a 'Reconciliation Report' from Xero or prepare an internal report summarizing the Fidelity Bank credit card reconciliation.
5.5.4 Submit the reconciliation report and supporting documentation to the Management Team for review and approval.
5.6.1 Retain digital copies of Fidelity Bank credit card transaction reports/statements and all supporting documentation (including discrepancy resolution notes).
5.6.2 Ensure all customer payments are accurately recorded and applied in Xero, reducing the outstanding balance of the respective invoices or loans.
5.6.3 Regularly review the Accounts Receivable Aging Report in Xero to ensure that payments are correctly reflected.
5.6.4 Ensure all processes adhere to PCI DSS (Payment Card Industry Data Security Standard) requirements as outlined in the relevant SOP.
5.6.5 Retain all relevant documentation as per the Financial Reporting Policy.
Fidelity Bank Credit Card Transaction Reports/Statements
Xero 'Receive Money' Transactions (for credit card payments)
Xero Bank Reconciliation Report
Accounts Receivable Aging Report (from Xero)
Internal Reconciliation Working Papers/Reports
Communication Logs (for discrepancy resolution with Fidelity Bank)
All Accounting Team members responsible for reconciling Fidelity Bank credit card payment receipts will receive mandatory training on this SOP, relevant financial policies, and PCI DSS compliance annually or upon significant revisions.
This SOP will be reviewed annually by the Accounting and Finance Departments, in conjunction with IT, to ensure its continued effectiveness, compliance with financial policies, PCI DSS, and alignment with business objectives and any changes in Fidelity Bank's reporting or credit card processing services.