Reconciliation

The Reconciliation module in Hyperswitch automates financial reconciliation, providing businesses with greater accuracy and control over their financial processes. It simplifies transaction matching for financial operations (FinOps) teams, ensuring seamless verification of payments, settlements, and ledger entries with 99% reconciliation accuracy.

Financial reconciliation is essential for maintaining transparency, identifying revenue leakages, and ensuring regulatory compliance. Without an efficient reconciliation system, businesses risk financial discrepancies, accounting errors, and increased manual effort. Hyperswitch offers a robust solution that streamlines reconciliation and enhances operational efficiency.

By integrating Hyperswitch’s reconciliation module, businesses can:

Ensure transactional accuracy – Handle large transaction volumes with minimal discrepancies.
Achieve high reconciliation rates – Reduce financial mismatches and missing transactions with a 99% reconciliation rate.
Automate error resolution – Minimize manual intervention by automatically resolving 80% of reconciliation exceptions.
Improve processing efficiency – Accelerate reconciliation workflows, leading to a 60% increase in efficiency and faster financial closing.

Benefits for Merchants

Accurate Financial Reporting
- Ensures every transaction is properly recorded and reconciled.
- Reduces accounting errors and revenue losses.
- Generates audit-ready reports for compliance.
Automated Reconciliation with Minimal Effort
- Matches transactions across PSPs, banks, and internal ledgers.
- Resolves 80% of discrepancies automatically.
- Reduces dependency on manual intervention.
Improved Efficiency and Faster Closing
- Automates reconciliation workflows for 60% faster processing.
- Provides real-time visibility into financial operations.
Fraud Detection & Compliance
- Flags missing, duplicate, or suspicious transactions automatically.
- Maintains audit-ready records to meet regulatory standards.
Scalability for Business Growth
- Supports multi-region transactions with different currencies and tax structures.
- Handles high transaction volumes efficiently.

Key Features

Multi-Source Reconciliation
- Matches transactions across PSPs, banks, and internal ledgers.
- Supports global payments with multi-currency handling.
Automated Anomaly Detection
- Instantly identifies mismatched or missing transactions.
- Uses machine learning to reduce manual reviews.
Error Categorization & Reporting
- Detects processing fee mismatches, chargebacks, refunds, and duplicate charges.
- Provides structured reports for easy issue resolution.
Custom Rules & Configurations
- Enables flexible reconciliation formats tailored to business needs.
- Supports SaaS, on-premise, and open-source deployments.
Seamless Automation
- Schedules reconciliation workflows for real-time transaction matching.
- Generates instant reports and alerts for better financial control.

Use cases

Three-way recon - Hyperswitch Recon Engine can execute 3-way reconciliation between merchant, PSP, and bank. This intricate reconciliation paradigm ensures that financial transactions traverse seamlessly across these entities, validated based on crucial attributes such as Amount, Status, Fees & Taxes, and more, as stipulated during configuration.
Two-way recon - Hyperswitch Recon Engine also offers the flexibility to execute 2-way reconciliation between the Merchant and PSP.

Activate & Configure the Reconciliation module

Go to Reconciliation tab on the Hyperswitch control centre.
Click on send an email. Hyperswitch team will reach out to you over email. We will need to configure the file formats of PSPs and bank reports that you plan to use via the Reconciliation module.
- To configure PSP or a bank report file format, you need to have sample data in the right format. PSPs support various API reports tailored for different use cases. You must select the report that aligns with your specific business requirements. We provide support for multiple file formats for a single PSP.
- It usually take 2-5 days for the team to configure the module as per your requirements depending on the file formats and other specifications.
- Merchants can also choose whether they want to do Manual reconciliation or Automated reconciliation.
- We also allow merchants to specify the details of computations based on transaction values, fees, and taxes.
  - For instance, consider an order of $100 sent via Hyperswitch to the payment processor which will ultimately send this amount to the merchant's bank for settlement. However, in between, the payment procesor will deduct fees as well as taxes, let's say 5% each. Therefore, the settled amount will be $90, with a $5 fee and a $5 tax.
  - The payment processor report should contain these details. However, in case these details are not present in the report , the merchant can specify these values. Based on the merchant configured specifications, we will reconcile the bank's settled amount.
Once reconciliation is active for your merchant account, you will be notified through an email. You can log into Hyperswitch dashboard and click on 'Go to recon tab'. You will be redirected to the Reconciliation dashboard.

The merchant will be granted Merchant admin access to the Reconciliation dashboard and will have the ability to add their internal team members as Users with customisable permissions from the Admin tab.

Last updated 3 months ago

Was this helpful?

Use cases

Three-way recon - Hyperswitch Recon Engine can execute 3-way reconciliation between merchant, PSP, and bank. This intricate reconciliation paradigm ensures that financial transactions traverse seamlessly across these entities, validated based on crucial attributes such as Amount, Status, Fees & Taxes, and more, as stipulated during configuration.

Two-way recon - Hyperswitch Recon Engine also offers the flexibility to execute 2-way reconciliation between the Merchant and PSP.

Activate & Configure the Reconciliation module

Go to Reconciliation tab on the Hyperswitch control centre.

Click on send an email. Hyperswitch team will reach out to you over email. We will need to configure the file formats of PSPs and bank reports that you plan to use via the Reconciliation module.

To configure PSP or a bank report file format, you need to have sample data in the right format. PSPs support various API reports tailored for different use cases. You must select the report that aligns with your specific business requirements. We provide support for multiple file formats for a single PSP.
It usually take 2-5 days for the team to configure the module as per your requirements depending on the file formats and other specifications.
Merchants can also choose whether they want to do Manual reconciliation or Automated reconciliation.
We also allow merchants to specify the details of computations based on transaction values, fees, and taxes.
- For instance, consider an order of $100 sent via Hyperswitch to the payment processor which will ultimately send this amount to the merchant's bank for settlement. However, in between, the payment procesor will deduct fees as well as taxes, let's say 5% each. Therefore, the settled amount will be $90, with a $5 fee and a $5 tax.
- The payment processor report should contain these details. However, in case these details are not present in the report , the merchant can specify these values. Based on the merchant configured specifications, we will reconcile the bank's settled amount.

Once reconciliation is active for your merchant account, you will be notified through an email. You can log into Hyperswitch dashboard and click on 'Go to recon tab'. You will be redirected to the Reconciliation dashboard.

The merchant will be granted Merchant admin access to the Reconciliation dashboard and will have the ability to add their internal team members as Users with customisable permissions from the Admin tab.