10 min read • E-commerce

The £18k Missing Payment Mystery

Tom's Shopify store was processing £280k monthly across 6 payment methods. His books showed £262k. Where was the missing £18k? Here's how systematic e-commerce reconciliation solved the puzzle.

Tom's E-commerce Empire Problem

Tom runs a successful outdoor gear business. Shopify store, Amazon FBA, eBay listings, direct B2B sales. Six payment processors, four currencies, thousands of transactions monthly. His spreadsheet reconciliation took 12 hours weekly and still missed payments.

The wake-up call: His accountant found £18,000 in payments that were processed but never recorded in his books. The money was there, scattered across different platforms, but completely invisible to his business finances.

The Modern E-commerce Payment Landscape

A typical e-commerce business might handle payments through multiple channels:

  • Direct Card Payments

    Processed through Stripe or similar, typically settled in 2-3 business days

  • PayPal Transactions

    Can be withdrawn manually or automatically, with variable timing

  • Buy Now, Pay Later Services

    Klarna, Clearpay, etc., each with their own settlement schedules

  • Marketplace Payouts

    Amazon, eBay, Etsy - often consolidated weekly or biweekly

Common Reconciliation Challenges

1. Fee Structures

Each processor deducts fees differently:

  • • Some deduct per transaction
  • • Others take a monthly fee
  • • Many combine both approaches

2. Settlement Timing

Transaction dates rarely match settlement dates:

  • • Card payments typically settle in 2-3 days
  • • PayPal can be instant or manual
  • • Marketplaces often hold funds for 14+ days

3. Batch Settlements

Multiple transactions often appear as single deposits:

  • • Daily card payment batches
  • • Weekly marketplace settlements
  • • Combined fee deductions

Best Practices for Multi-Processor Reconciliation

  1. 1

    Standardize Your Export Formats

    Create a consistent format for all processor reports to make comparison easier. Focus on key fields like transaction date, settlement date, and fees.

  2. 2

    Track Settlement Patterns

    Document typical settlement delays for each processor. This helps predict when transactions should appear in your bank account.

  3. 3

    Separate Fee Reconciliation

    Handle processor fees separately from transaction reconciliation. Create a dedicated spreadsheet or system for fee tracking.

Common Pitfall

Don't try to match individual transactions within batch deposits manually. This approach is time-consuming and prone to errors. Instead, focus on matching the batch totals and then drill down only when discrepancies appear.

Automating Multi-Processor Reconciliation

Modern reconciliation tools can dramatically simplify this process by:

  • Automatically matching batch settlements with individual transactions
  • Identifying fee discrepancies across processors
  • Handling different settlement timing patterns

Ready to Simplify Your E-commerce Reconciliation?

See how automation can help you manage multiple payment processors efficiently and accurately.

Try Our Reconciliation Tool