Reconciliation
Settlement reconciliation for fintechs and payment companies: wallets, NIP and processors
A fintech reconciles settlements by tying every transaction, every day, across the wallet ledger, the processor or NIP report and the bank statement, keyed on the NIP session ID or settlement reference. A two-way check can balance in total while individual transactions are wrong.
For a payment company, reconciliation proves customer money is where your ledger says it is.
The three-way reconciliation
| Source | What it tells you | Common breaks |
|---|---|---|
| Wallet ledger | What each customer or merchant should hold | Credits for transfers that later failed; debits not reversed after a timeout |
| Processor or NIP report | What was approved, the fees taken and each settlement batch | One settlement covering hundreds of payments; fees deducted before payout |
| Bank statement (pool and settlement accounts) | What actually entered or left the bank | Batch credits with thin references; charges booked by the bank only |
NIP session IDs
Every NIP transfer carries a session ID, unique to that transfer. Amount and date fail in exactly the cases that matter: two customers sending ₦5,000 in the same minute, a retried timeout, or a reversal a day later.
Three breaks to look for daily:
- Pending or timed-out transfers the ledger debited but the bank never sent, or sent after the ledger reversed them.
- Reversals that reached the bank but were never credited back to the wallet.
- Duplicate credits, where a retry created two ledger entries for one session ID.
Pool accounts: reconcile daily
For mobile money operators, a Goldsmiths Solicitors summary on Afriwise of the CBN's 2021 mobile money framework says MMOs keep pool accounts at deposit money banks, separate from other funds, and must "reconcile daily, the balances in their pool accounts" (checked November 2026). Check the CBN text for your licence.
Whatever your licence, the daily test is the same: total wallet balances should equal the pool account balance, after timing items, each with a session ID or batch reference and clearing within a day or two.
T+1 settlement and processor fees
The CBN Guidelines on Operations of Electronic Payment Channels (2020) require domestic POS, mPOS and web transactions to settle to merchants on T+1.
Published fees (Paystack, Flutterwave, checked November 2026): Paystack charges 1.5% + ₦100 on local transactions, with the ₦100 waived below ₦2,500 and fees capped at ₦2,000. Flutterwave charges 2% on local payments, and fees attract 7.5% VAT.
Example figures: a ₦20,000 Paystack payment costs ₦400, so ₦19,600 should settle the next working day. Through Flutterwave it costs ₦400 plus ₦30 VAT, so ₦19,570 should settle. Our guide to reconciling Paystack, Flutterwave and Moniepoint works through a full batch.
Outward transfers of ₦10,000 and above also carry a ₦50 stamp duty paid by the sender, which replaced the EMTL from 1 January 2026, according to PwC Tax Summaries (checked November 2026). Confirm the rules that apply to you with your tax adviser.
Clearing accounts, chargebacks and reversals
Each clearing account should hold only items in transit:
| Account | Should hold | Red flag |
|---|---|---|
| Payment gateway clearing | Payments awaiting settlement | Items older than the settlement cycle |
| Wallet float | Customer funds in transit to the pool account | A balance that grows every week |
| Suspense | Credits not yet identified | Any item without an owner |
Returned money breaks reconciliations most often: each return has two legs that rarely arrive together. A NIP reversal must credit the customer once, against the original session ID. A card chargeback must be matched to the original payment and the notice. Keep one list of open chargebacks, refunds and reversals, each with its reference, age and owner. Unreviewed suspense hides finance leaks.
How Brillrec helps
Brillrec is the finance operations platform for Nigerian businesses, with three products: Reconciliation, Internal Control Automation and Financial Close Management. For payment companies, Reconciliation does the daily work.
- Three-way reconciliation. Wallet ledger, processor and bank in one reconciliation, with the float position, daily on Essential and above.
- NIP. NIBSS NIP session reports are matched by session ID, and unsuccessful transfers are left out and counted. Failed or timed-out transfers are kept with their response code, and an open line quoting one is marked "Status mismatch" with a possible-loss note.
- Connections. Paystack, Flutterwave, Monnify and Squad bring settlements and payments, using your read-only keys. Fincra, Paga and VFD Bank bring statements. Korapay, Remita, OPay and PalmPay reports are uploaded. See integrations.
- Settlements checked. Gross, less fees, VAT and deductions, must equal what reached the bank. A settlement reconciliation takes the whole bank statement and sorts each line into this processor's settlements, another processor's lines or lines set aside. Fees are recomputed for Paystack, Flutterwave, Monnify and Squad against published prices, and for any processor whose agreed rate you enter; overcharges are tracked as Raised, Recovered or Closed.
- Payout calendar (Professional and above): Paystack, Flutterwave and Monnify payouts due T+1 working day, Nigerian holidays counted, and marked late from 10am the next working day.
- Clearing and suspense (Professional and above): gateway clearing, wallet float, suspense, and a NIP clearing account, matched by session ID first. The account signs off only when it nets to nil or every item is explained.
- Disputes register (Professional and above): chargebacks, refunds and reversals, each with an owner, age and status; large write-offs need approval.
- Automatic sign-off. When both sides arrive by themselves (a connection, the API, SFTP or email), Brillrec starts each period's reconciliation and, if nothing is left open and balances agree, signs it off as "Signed off automatically by Brillrec". An admin can switch this off.
- Morning digest. A 7am email lists open items by account, short settlements, overcharges, late payouts and disputes past their window. It is on for admins and approvers; anyone can switch it on or off.
- Professional and above: hourly pulls from 7am to 10pm, optional processor webhooks, and Find a transaction, which searches recent reconciliations by reference, session ID, RRN or amount and produces a masked evidence PDF. A Support role can use Find a transaction and nothing else.
- Controls and close. Unusual journal rules flag self-approval, quick reversals and posting after close (Essential and above; see Internal Control Automation). Financial Close Management includes CBN returns and fintech settlement and safeguarding checklists, with each date marked "to confirm".
- High-volume routes. Statements by email on Essential and above. Business, at ₦950,000 a month plus VAT, adds the API and SFTP. See pricing.
- Security. Registered with the NDPC. Bank and processor connections only read, so Brillrec cannot move money.
AI runs masked by default for new organisations, with separate switches for Reconciliation and Close. AI is optional: an admin can switch it off, it never signs off or approves, and every use is logged.
Reported by clients: 99% of clients' bank and ledger lines matched automatically in a month, 70% less month-end close time, 50% less audit preparation time and 2.5x finance team productivity. Results depend on your records and how your team works. See client results.
Frequently asked questions
What is three-way reconciliation for a fintech?
Matching each transaction across the wallet ledger, the processor or NIP report and the bank statement, so totals and transactions both agree.
How do you reconcile NIP transfers?
On the NIP session ID, not amount and date. It ties the ledger entry, the NIP report and the bank line to one transfer, including reversals and retries.
How often should a pool account be reconciled?
Daily. The CBN framework requires it of MMOs, and it is good practice for anyone holding customer funds.
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