How Solidgate’s financial reporting simplifies settlement reconciliation

In 2023 alone, global e-commerce sales exceeded $6 trillion, with merchants using an average of 4.6 payment methods per business—each with unique reporting structures. At the same time, over 60% of finance teams reported spending more than 10 hours per week on manual reconciliation tasks—time that only increases as you scale.

Without settlement reconciliation software to control payouts and settlements from different payment providers, you’re left with scattered data, time-consuming manual work, and a higher risk of errors, putting additional strain on already overburdened financial operations.

Why settlement reconciliation is such a challenge for merchants

Data scattered across providers and banks

Managing settlements means dealing with multiple acquiring banks and payment providers. Each has its own settlement rules and ways of reporting. This fragmented data inevitably creates operational silos and slows down financial workflows, resulting in inaccurate financial records.

Inconsistent reporting formats

Every institution has unique structures and logic for settlement reports. Trying to reconcile these inconsistencies is time-consuming. It requires significant manual effort to make the data usable.

Manual reconciliation

Without automation, financial teams waste hours manually reconciling settlements. This not only drains productivity but also increases the chance of costly errors and hinders accurate financial reporting.

Operational strain on finance teams

Settlement challenges often pile onto already overburdened financial operations. Teams face constant pressure to deliver accurate data under tight deadlines. It impacts their efficiency and distracts them from higher-priority tasks.

Cash gaps and working capital strain

Delays in payment processing or payout holds from acquiring banks can extend cash gaps and put pressure on working capital. Without proper control over accounts receivable, merchants may be forced to rely on expensive financing or risk disrupting operations. This underscores the need for faster, more reliable payout processes.

Scaling only makes it worse

As businesses grow, transaction volumes and the number of payment methods increase as well. It makes payment reconciliation even more complicated. The absence of scalable tools leads to bottlenecks that can slow down the entire operation.

How Solidgate Financial Reporting solves the problem

We’re excited to introduce a new feature in the Solidgate HUB: the all-in-one Financial Reporting section. Built to simplify and streamline your settlement reconciliation, this feature consolidates settlement data from PSPs, acquirers, processors, and alternative payment methods (APMs) into a unified view accessible via the Solidgate admin panel or API.

Here’s what you get with the Financial Reporting feature:

• Complete cash flow visibility, all in one place. View and manage settlement data from all your payment providers in a single location. No more switching between platforms or piecing together information from multiple sources.
• Standardized, consistent reports. We make settlement reconciliation easier by presenting settlement data in a uniform format, regardless of the provider. Say goodbye to the hassle of aligning mismatched data.
• Simplified reconciliation workflows. Automate processes and reduce errors with optimized workflows. Make financial teams more efficient.
• Quick access to essential reports. Monthly reports and invoices are now easily retrievable through a centralized interface. They save you time and reduce the risk of missing critical documents.
• Growing bank and provider coverage. While we’ve started with a select group of banks and providers, we’re continuously adding more to ensure that all merchants get the comprehensive reporting they need.

This settlement reconciliation feature is designed to simplify the complexities of financial reporting. This gives your team more time to focus on strategic tasks. You can access your Settlements reports directly through the Solidgate HUB’s admin panel in the Finance section or via API.

For more information on settlements and settlement reports, visit our documentation or reach out to support!

FAQs

1. What is settlement reconciliation?

Settlement reconciliation is the process of verifying and matching settlement data from payment providers, acquirers, and processors to ensure that all transactions are accurately recorded and funds are correctly settled.

2. Why is settlement reconciliation important for merchants?

It’s essential for maintaining accurate financial records, managing cash flow, and reducing errors. Without proper reconciliation, merchants risk financial discrepancies, delayed payments, and strained working capital.

3. How does Solidgate simplify settlement reconciliation?

Solidgate’s Financial Reporting feature consolidates settlement data from all payment providers into one unified view, offering consistent reports, automated workflows, and easy access to essential reports, making reconciliation faster and more efficient.

4. What are the benefits of using Solidgate’s settlement reconciliation services?

The main benefits include complete cash flow visibility, standardized reports, streamlined workflows, and reduced errors. Besides, the time saved on manual reconciliation allows finance teams to focus on more strategic tasks.

5. Is Solidgate’s settlement reconciliation feature suitable for businesses of all sizes?

Yes! Solidgate’s solution is scalable. It is ideal for businesses of all sizes, whether you’re just starting or dealing with large volumes of transactions as you grow.