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Introduction

Subsequent to a given network settlement, Lead requires data to reconcile network activity, specifically, the transaction and refund amounts. As cardholders are Lead customers, Lead has the obligation to reconcile network activity against individual transaction activity to both ensure both financial flows are balancing as well as comply with relevant regulations.
  • Debit/Prepaid BINs: Lead-owned require Lead to collect and reconcile cashflows on a daily basis.
  • Credit BINs: Credit cardholders are Lead borrowers and as a result, receivables must be originated at the cardholder level.

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Daily Reporting

Lead uses your Transaction files to reconcile activity against each day’s network settlement. This is done by using the settlement_date populated for every transaction with the transfer type of card. However, reconciliation happens T+1 of network settlement, since network settlement windows generally do not align with Lead’s network windows. In other words, Lead uses two days worth of Transaction files in order to reconcile a given day’s network settlement. Example For a given network settlement on T, Lead uses the Transaction files delivered on T and T+1 to identify all of the transactions that reconcile to T’s network settlement.
File DateTransaction IDAmountSettlement Date
10/12102$12.0010/12
10/13103$14.0010/12
10/13104$16.0010/12
10/13105$18.0010/13
Assume the first date the program is live is 10/12 and the current processing date is 10/13:
Network Settlement DateNetwork Settlement Transaction AmountReconciled?
10/12$42Yes: On 10/13 - using the transactions from 10/13’s Transactions file, Lead can sum the three transactions with settlement date of 10/12 to reconcile to $42 and continue with processing.
10/13$40**Not yet: **Since Lead doesn’t yet have the 10/14 Transaction file, there is only a partial dataset for 10/13’s network settlement where Lead only sees $18 (of the $40) from the 10/13 file.
This is an important validation that will block subsequent days of daily reports (not the Network Settlement report) if reconciliation does not pass. In the example above:
If a transaction from 10/12’s Transaction file is missing (e.g., Transaction 102), then the validation will fail on 10/13.

Remediation: Roll back 10/12’s Transaction file and correcting the data, which is a manual and intensive process on the Lead side.
If a transaction from 10/13’s Transaction file is missing (e.g., Transaction 103), then the validation will fail on 10/13.

Remediation: Reupload an updated 10/13 Transaction file with the correct data.
The above example is only for Transaction amount; the same requirements apply for Refund amount.

Interchange, disputes, and fees are exempt from reconciliation because Lead considers these corporate funds, meaning they do not impact the end customer’s ledger.

Interchange and fees are items that are assessed to you per your contract, and disputes are typically held in a partner-owned account until the dispute is resolved.
Reconciliation runs across each network and BIN type combination. This means if multiple BINs are debit/prepaid, then the network settlement report will display the combined totals, which our system will then reconcile against the appropriate transactions. The same is true for and transactions — Lead will run reconciliation on each network settlement file and reconcile the two amounts related to transaction spend:
Network Settlement Report Field On TIssuing BIN (Debit/Prepiad/Credit)Acquiring BIN (Push-to-Card)
transaction_amountSum of amount from transactions where type = debit and transfer_type = cardSum of amount from transactions where type = debit and transfer_type = ,
refund_amountSum of amount from transactions where type = credit and transfer_type = card, Sum of amount from transactions where type = credit and transfer_type = ,