Financial Policies

Credit Card Reconciliation and Refund


This document describes Southern Methodist University – Student Affairs policy for credit card reconciliation and refund. This reconciliation and refund process is critical for accurate, timely processing, and transactions posting to the University’s financial/accounting system.


Credit card reconciliation is the process of matching credit card statements to receipts or transaction logs. Discrepancies might include delayed transmissions, and or missed batches between the merchant bank and the transactions logs and or credit card banking records. The credit card payment can be either manual or automated, and this also determines how the reconciliation will be performed. In the manual process, the credit card holder processes the payment through physically running their card in a card reader at a point of sale (POS). In the automated process, the credit card holder processes the payment by entering the card and personal details in the SMU provided online page, and selects the desired service of product.

Reconciliation Procedure

a)       In the manual process, daily credit card macro receipts are printed and verified at the POS by requiring the credit card holder to append their signature. The daily credit card sales are then verified by the accountant and a credit card deposit form, to ‘deposit’ credit card funds, is completed and delivered to the University Cash department for processing. Each month, the merchant sends a statement showing the monthly transactions processed. The accountant verifies these transactions against the credit card deposit forms. Any discrepancies noted are investigated and adjusted (technically, the University Cash department would have adjusted for any charges).

b)       In the automated process, the online credit card manager, prints the credit card transaction log and compares to the merchant’s monthly statement. Variances are investigated and adjusted as necessary.

Credit Card Refunds Procedure

Credit card refunds are likely to arise when a credit card charge exceeds the billable amount, a purchase fails to be delivered or service fails to be provided, etc. Other instance may include when payment for the service is not made in full, or where the offered service is oversubscribed. All credit card refunds are subject to approval by the department’s Executive Director before refunds can be process.

Credit card refunds will be processed as follows:

a)       The credit card holder will initiate the refund process by presenting the request to the credit card processor who will determine the legitimacy of the refund. If request is legitimate, approval will be sought from the department’s Executive Director.

b)       After authority is obtained the credit card manager will, in the case of the online card transaction, forward the request to Millicent Grant to process the refund through the merchant. In the case of the manual system (Health Center), the refund will be processed through the POS and charged back to the original card used in the initial transaction.

c)       If the original card has been compromised or closed, the processing bank will issue refunds, chargebacks and reversals to the new card/account. If the account is closed without a new card being assigned, the processing bank will mail a refund check directly to the card holder. 

d)       All documentation relating to the refund will be properly filed, and included in the daily receipt summary for verification by the accountant.