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Policies and Procedures

Procedure 308.5 – Reconciliation, Refunds, Chargebacks and Transaction Posting

Effective
July 1, 2006
Last Updated
August 10, 2011
Responsible University Officer
Executive Director and Information Security Officer
Information Technology Services
University Controller
Responsible Unit
Accounting Services

Procedure Statement

This procedure explains how to reconcile and post credit card transactions.

Forms and Instructions

To reconcile and post a transaction, the University department will follow the procedures below, listed in chronological order by responsible department:

  • University Department Functions:

University departments accept credit card payment through customized internet applications, Yahoo store fronts, point-of-sale (POS) terminals or point-of-sale software, collectively referred hereafter to as card payment system (CP) in this document.

First Business day: Departments prepare a transaction log of the credit card payments received. This transaction log is generally an internally developed tracking tool which may be an Excel spreadsheet or screen print or an extract of the CP system. This transaction log should include transaction number, effective date, payment amount, and contact information of the individual making the credit card payment. No credit card numbers or CVV codes should be entered in this log.

Second business day: Departments access transaction report, generated by the CP system, listing actual credit card payments posted to the University bank account. Departments compare and reconcile transaction report to the transaction log, both individual transactions and in the aggregate; research variances; and make appropriate adjustments to the transaction log. This reconciliation process is critical for accurate, timely processing and posting transactions to departments’ Financial Records System (FRS) accounts.

Using the above reconciled report, departments prepare and submit a Daily Cash Transmittal (DCT) through the Departmental Deposit System, accessed through Finance Central. The DCT confirms the amount of the credit card payments received and allocation of the funds to the appropriate FRS accounts and objects.

  • Office of Student Accounts and University Receivables Functions

Third business day: Office of Student Accounts and University Receivables retrieves the DCT data from the Departmental Deposit System and compares it to the Electronic Advice, which is a previous day balances report, received via web from Wachovia Bank. Office of Student Accounts and University Receivables contacts respective departments and resolves discrepancies noted between the DCT data and Electronic Advice.

Office of Student Accounts and University Receivables sends reconciled DCT data to Accounting Services electronically for the Data Collect (FRS) to post. A hard copy of the DCT data and Electronic Advice is sent via interoffice mail to the Accounting Services.

Office of Student Accounts and University Receivables certifies with the State Treasurer the credit card payment deposited in the University account at Wachovia Bank

  • Accounting Services Functions

Third business day: Data Collect system performs FRS validation routine on the DCT batch and generates a preliminary report. Accounting Services receives a hard copy of the preliminary report on the morning of the fourth business day.

Fourth business day: Accounting Services reviews the preliminary report for any error messages. Error messages may range from invalid account number to incorrect object codes. Accounting Services staff the contact departments to resolve these error messages. To ensure accuracy and completeness, the preliminary report is compared to the hard copy of the DCT data received. Accounting Services staff then approves the preliminary report, rerun Data Collect batch after correction, close the batch and release the report for overnight posting to FRS.

Refunds

All credit card refunds must be posted to the original card used for the sales transaction.  If the original card has been compromised or closed, the issuing banks are supposed to issue refunds, chargebacks and reversals to the new card/account.  If the account is closed without a new card being assigned, then the issuing bank will mail a check for the refunded amount.  If the cardholder has not received the refund within three to five business days, the cardholder should contact their issuing bank to begin research on the refund.

Chargebacks

Chargebacks are charges disputed by the cardholder. Merchants are notified through ClientLine, American Express Online Merchant Services (AMEX OMS), via fax or by mail. It is the merchant’s responsibility to review and respond appropriately to the chargeback. Responses to the chargeback can be made via ClientLine, AMEX OMS or via fax. For Mastercard and VISA, the funds are deducted from the merchants account at the time the chargeback is initiated. If the merchant wins the chargeback, the funds are returned. American Express only deducts funds if the merchant does not win the chargeback. If funds are deducted or returned, the daily departmental deposit must be adjusted to reflect the changes. These charges will not show up in the payment gateway reports or Point-of-Sale Terminal batch settlements, but are available in ClientLine and AMEX OMS.

Related Data

Finance Central
ClientLine

American Express Online Merchant Services

History

Revised:
August 10, 2011: Added refunds.
July 15, 2011