Why is the payout smaller than captured sales?
Reconcile fees, reserves and timing with the bank entries.
The question
Meridian Pay’s fictional settlement report covers one batch in US dollars. Refunds and chargebacks are settled, distinct deductions. Fees are 2.5% of gross captured value. The reserve is still owed to the merchant under this case’s terms; it is held back from cash, not charged as a fee.
| Amount ($) | |
|---|---|
| Gross captured | 100000 |
| Refunds | 3000 |
| Chargebacks | 2000 |
| Reserve withheld | 5000 |
| Bank entry bank-1 received | 85000 |
Each deduction applies once. The bank entry has the batch’s payout reference.
Match payout reference, currency, unique bank-entry ID and timing. Do not change the fee ledger merely to make one day’s bank total equal the expected payout.
“Choose your next action and explain the evidence behind it.”
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A strong answer, step by step
Open each step in turn. This is one strong answer, not the only one.
Step 1: Calculate the expected payout
What would you do here? Open the move you’d make.
Compare bank cash with the net settlement amount.
The strong move. Gross sales are not the expected bank payout.
Call the $15,000 gross-to-bank difference a loss.
Tempting, but it misses something. That difference includes the stated refunds, chargebacks, fee and reserve.
See how a strong candidate says it
“Fees are $100,000×2.5% = $2,500. Expected cash is $100,000−$3,000−$2,000−$2,500−$5,000 = $87,500. The bank is $2,500 short of that amount.”
Why it works: Gross sales are not the expected bank payout.
Step 2: Trace the difference
What would you do here? Open the move you’d make.
Check reference, entry identity and timing.
The strong move. A matching amount alone does not establish the cause.
Book another $2,500 fee because the difference matches the fee.
Tempting, but it misses something. The report already deducted that fee; a second fee would invent an expense.
See how a strong candidate says it
“I would match the processor report to bank entries by reference and currency, then check settlement timing. I would leave the difference open until an entry or correction explains it.”
Why it works: A matching amount alone does not establish the cause.
Step 3: Match both bank entries
On the next business day, bank entry bank-2 credits $2,500 with the same payout reference and currency. Its bank-entry ID is distinct from bank-1.
What would you do here? Open the move you’d make.
Close the timing exception with both entry IDs.
The strong move. Distinct bank entries can belong to the same payout.
Discard bank-2 because its payout reference repeats.
Tempting, but it misses something. The payout reference groups the credits; their unique bank-entry IDs show two separate receipts.
See how a strong candidate says it
“The two distinct credits total $85,000 + $2,500 = $87,500. The payout now reconciles; I would record that it arrived in two parts.”
Why it works: Distinct bank entries can belong to the same payout.
Step 4: Keep the reserve visible
What would you do here? Open the move you’d make.
Track the reserve until its own release.
The strong move. Cash timing and the remaining receivable are different records.
Write off the reserve as part of the timing correction.
Tempting, but it misses something. The case says the $5,000 remains owed; neither bank entry releases it.
See how a strong candidate says it
“I would close the $2,500 timing gap and continue tracking the $5,000 reserve separately until it is released. Reconciled cash does not mean the reserve was paid.”
Why it works: Cash timing and the remaining receivable are different records.
The answer, in short
- Decision
- Close the payout timing gap and keep the reserve open.
- Because
- The bank received the expected $87,500 in two distinct credits.
- What would change it
- A reserve release or a genuine corrected settlement report would change the remaining balance.
Common traps
- Comparing net cash directly with gross sales.
- Inventing a fee to force a match.
Check your answer
- I calculated the fee on gross value.
- I applied each deduction once.
- I matched both unique bank entries.
- I kept the reserve separate.
Last reviewed Nov 10, 2026