Hotel Payment Reconciliation Software
Terrace AI helps hotel accounting teams match merchant deposits, card settlements, VCCs, refunds, chargebacks, folio payments, PMS records, and accounting postings so payment exceptions are easier to find.
- less time tying out deposits
- 85%less time tying out deposits
- faster bank-to-folio match
- 5xfaster bank-to-folio match
- fewer settlement gaps
- 30%fewer settlement gaps
Bank deposits tied back to every PMS folio, automatically.
Terrace ingests merchant settlement, card processor, and bank statement data, matches every deposit to PMS folio records and OTA remittances, and flags any gap between what was deposited and what was billed.
- Merchant, card, and bank statement ingestion
- Deposit-to-folio matching across payment types
- Settlement-day exceptions surfaced for review
What is hotel payment reconciliation?
Hotel payment reconciliation is the process of matching every payment received by the hotel against the corresponding folio, PMS record, and accounting posting to confirm that all funds are accounted for and correctly recorded. This includes credit card settlements, VCC payments from OTAs, refunds, chargebacks, and merchant deposit reports from payment processors.
For hotel accounting teams, payment reconciliation requires cross-referencing payment processor reports, bank statements, PMS payment records, and accounting ledgers across multiple payment methods and channels to ensure every transaction is matched and any discrepancy is identified and resolved.
- Merchant deposits matched to PMS payment totals
- Credit card batches reconciled against folio payments
- VCC amounts verified against folio totals
- Refunds and chargebacks confirmed in PMS
- Timing differences identified and resolved
- Unapplied payments detected and queued for review
Why payment reconciliation is painful for hotel accounting teams
Deposit reports, PMS records, and ledgers use different formats
Merchant deposit reports from payment processors, PMS payment totals, and accounting ledgers each use different reference formats and date conventions, making automated matching difficult.
VCC payments add a separate reconciliation layer
Virtual credit cards from OTAs must be individually matched against reservation amounts and folio totals, and mismatches are common when folio amounts change after the VCC is issued.
Refunds and chargebacks are not always in the PMS
Refunds and chargebacks processed through the payment processor or bank are not always automatically reflected in PMS records, creating gaps in the reconciliation.
Payment timing differences cause apparent mismatches
Banks, OTAs, and PMS systems record payments at different points in the transaction lifecycle, causing timing differences that look like exceptions but require investigation to confirm.
High transaction volume multiplies manual review time
Even small discrepancy rates translate to significant manual review when transaction volumes are high, making automated matching essential for properties with heavy payment activity.
Unapplied payments accumulate without automated matching
Payments that cannot be matched to a folio or PMS record accumulate over time and become harder to resolve the longer they sit unaddressed in the accounting system.
What data needs to be matched for payment reconciliation?
- Deposit date
- Batch total
- Reference number
- Batch amount
- Card type
- Settlement date
- Payment method
- Folio reference
- Amount posted
- VCC amount
- Authorization date
- Reservation reference
- Refund amount
- Chargeback date
- Original transaction
- Posted amount
- Account code
- Period
Common hotel payment reconciliation exceptions
The merchant deposit amount from the payment processor does not match the PMS payment total for the same date or batch.
The credit card batch settlement amount does not match the sum of folio payments for the same period or payment method.
The virtual card amount charged differs from the reservation amount or folio total due to a rate change, cancellation, or ancillary charge.
A refund or chargeback processed by the bank or payment processor is not reflected in the PMS or accounting ledger.
A payment appears in the bank on a different date than the PMS recorded it, creating an apparent mismatch that requires timing investigation.
A payment received cannot be matched to any folio or PMS reservation record and remains unresolved in the accounting system.
Manual hotel payment reconciliation workflow
- 1
Download merchant deposit reports from the payment processor and export PMS payment data for the same period.
- 2
Compare daily deposit totals against PMS payment totals and flag differences.
- 3
Pull credit card batch reports and match against folio payment records.
- 4
Match each VCC charge against the corresponding reservation and folio total.
- 5
Review refund and chargeback records and confirm each is reflected in the PMS.
- 6
Investigate timing differences between bank records and PMS postings.
- 7
Identify unapplied or unidentified payments and research each one.
- 8
Post corrections and file the audit trail.
Automated payment reconciliation with Terrace AI
Terrace AI connects to your PMS and payment data sources to match transactions automatically, surfacing only the exceptions your team needs to review.
Deposit matching
Merchant deposit matching against PMS payment totals
Terrace automatically matches merchant deposit amounts to PMS payment totals by date and batch reference.
Batch reconciliation
Credit card batch reconciliation
Card batch settlements are matched against folio payment records and discrepancies are surfaced for review.
VCC matching
VCC matching against folio totals
Virtual card amounts are matched against reservation amounts and folio totals and flagged when they differ.
- • Rate adjustment after booking: +$35
- • Late checkout fee not on VCC: +$14
Refunds & chargebacks
Refund and chargeback detection
Refunds and chargebacks are identified in processor records and checked against PMS and accounting to confirm they are reflected correctly.
Timing checks
Timing difference identification
Payments with bank and PMS date differences are flagged with context to help your team confirm whether the difference is timing-related or a genuine exception.
Unapplied payments
Unapplied payment detection
Payments that cannot be matched to a folio or PMS record are surfaced in a separate queue for investigation and resolution.
Stop profit leakage in your hotel. Recover what’s yours.
See how much revenue you’re missing — with a free reconciliation audit on your last 90 days of bookings.
Frequently asked questions
Hotel payment reconciliation is the process of matching merchant deposits, credit card settlements, VCC payments, refunds, chargebacks, and folio payments against PMS records and accounting postings to confirm every payment is accounted for correctly.
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