THE HICCUPS OF MULTI-CURRENCY RECONCILIATION.
Payment Service Provider (PSP) Reconciliation is the process of matching and verifying transactions in the digital age, particularly in multi-currency scenarios. It involves currency conversion, FX Checking, Fee checking, and journaling to finance system.
1. Multi- Currency Challenge:
Companies dealing with international transactions in various currencies face challenges in reconciling them accurately. This is because converting transaction amounts into the required currency can be a more complicated solution.
2. Two main solutions:
Companies can either request data addition from PSP, Back Office, or Getaway, or convert transaction amounts into the required currency. Downloading the current exchange rates using an API, or manually downloading the rates from the site. Discrepancies can be found between sources because it’s not always possible to know which exchange rate providers are being used by the PSP.
3. Currency Conversion:
Converting transactions into another currency involves downloading exchange rates and accounting rate discrepancies. A Back Office/ PSP can include the original amount of currency of each transaction in the report files and convert each of them into the converted currency amount to check if the data matches.
4. Fee Checking:
Fee Checking involves verifying PSP Fees against the fee schedule, particularly crucial for gaming companies. Checking the fees of PSP transactions can be highly beneficial as errors can result in large funds to gaming companies.
5. Journaling to Finance System:
Currency conversion may also be necessary when journaling PSP transactions into a finance system. The two ways to journal include:
1. Post a journal file containing a sum per currency of the PSP transaction amounts, and the finance system will convert these into one currency.
2. PSP transactions’ amounts will need to be converted into a common currency before they are posted into the finance system.
How does Churpy chip in to offer a lasting solution:
Churpy does specialize in automation of reconciliation processes and as all our clients have multi-currency transactions hence, we offer a product called Churpy Reconciliation, which helps your company and business automate the end-to-end reconciliation process.
To get more information on how we can make this a reality for you and your business operations, book a demo with us, and learn more on how we can assist to automate your payment options and realize endless possibilities.