PSA L&P - Credit Cards: How to balance a credit card reconciliation when there is a fraudulent charge on the statement

How to balance a credit card reconciliation when there is a fraudulent charge on the statement

Adjust the statement balance reducing it by the amount of the fraudulent charge.  Adjusting the balance eliminates the need to enter a charge that will be refunded by the credit card company.

For example:

The credit card statement balance is $10,000.

There is a fraudulent charge of $1,000 on the statement.

In order to reconcile you could enter $9,000 as the statement balance.

On the next credit card statement the company should have refunded the $1,000 (i.e. reduced the liability)

The next reconciliation should not require any adjustments to the statement balance.

 

Related Articles

Credit Card: How to reverse a charge or enter a refund

Credit Card Reconciliation Process

 

 

 

 

 

Updated

Was this article helpful?

0 out of 0 found this helpful

Have more questions? Submit a request