How to Reconcile Your POS to Your Bank Deposits

Your POS says what you sold. Your bank says what you received. Between them sit processor fees, timing differences, refunds, chargebacks, financing payouts and prepaid redemptions. Reconciling the two is how you know every dollar arrived.

Why the numbers differ

• Timing: card deposits arrive a day or more after the sale, so month-end sales may land next month.
• Fees: processors often deposit sales net of fees.
• Refunds and chargebacks: reduce deposits, sometimes days later.
• Financing programs: pay out separately, often net of their fee.
• Gift card and package redemptions: count as sales in the POS but bring no new cash.
• Cash and checks: depend on when they are deposited.

A practical routine

Daily or weekly

1. Export POS sales by payment type: card, cash, financing, gift card, package redemption.
2. Match card sales to processor reports for the same day.
3. Match processor deposits to the bank.
4. Note differences and their cause.

Monthly

1. Total sales by payment type for the month.
2. Total deposits by source.
3. Reconcile the difference with fees, refunds, chargebacks, timing items and redemptions.
4. Investigate anything unexplained.

Record sales gross, fees separately

Record the full sale amount as revenue and the processor fee as an expense. Booking net deposits as revenue hides fees and makes reconciliation much harder.

Watch for red flags

• Deposits consistently lower than expected without matching fees
• Refunds without a clear reason or approval
• Chargebacks that are not followed up
• Cash sales that do not match cash deposits

Make it someone's job

Assign the reconciliation to one person, with a second person reviewing monthly. Separating the person who takes payments from the one who reconciles them is a simple, effective control.