Reconciling Stripe and PayPal Transactions

As an organization managing donations through Fundraise Up, it's crucial to maintain accurate and up-to-date financial records. One key aspect of this process is reconciling transactions within payment processors like Stripe and PayPal. Let’s dive into the importance of Payment IDs and how Fundraise Up's export feature can simplify your reconciliation process.

Payment IDs: The Key to Accurate Donation Tracking

Payment IDs are unique identifiers assigned to each transaction processed through Stripe and PayPal. These IDs serve as a vital link between the donation recorded in Fundraise Up and the corresponding transaction within the payment processors. By focusing on Payment IDs, you can accurately match each donation with its financial transaction, ensuring that your financial records reflect the true state of donations received.

Simplifying Reconciliation with Fundraise Up Exports

Fundraise Up's powerful Exports feature is designed to streamline your reconciliation process. With just a few clicks, you can generate comprehensive reports that include all the essential data you need, including:

• Donation amount
• Donor details
• Payment ID
• Donation ID
• Payment processor
• Campaign name
• Designation Name

Having this information readily available allows you to cross-reference and reconcile your transactions in Stripe and PayPal, minimizing the risk of discrepancies in your financial records. However, you may face several challenges when reconciling transactions between Fundraise Up and payment processors:

1. Timezone differences: Stripe's cut-off times are based on UTC, while Fundraise Up reports are based on the organization's timezone. This discrepancy can cause confusion when trying to match transactions between the two systems.
2. Payout batch processing: Stripe processes payouts in batches, which can span multiple days. This can make it difficult for organizations to determine which Fundraise Up transactions correspond to a specific Stripe payout report.
3. Bank transfer donations: Donations made via bank transfer may take up to 7 days to reflect in the organization’s account. This can further complicate the reconciliation process, as organizations may need to account for these donations separately.
4. PayPal-specific challenges:
   • PayPal reports may include data from multiple sources, not just Fundraise Up. Organizations need to identify and isolate Fundraise Up transactions in such cases manually.
   • Foreign currency transactions in PayPal can cause discrepancies in fee calculations and make reconciliation more complex.
   • PayPal reports have separate rows for donations and fees, requiring manual calculation of net amounts.
5. Manual process: The reconciliation process between Fundraise Up and payment processors often involves manual steps, such as exporting data, manipulating spreadsheets, and matching transactions based on various criteria (e.g., dates, names, amounts).

Reconciliation Process

To ensure a smooth reconciliation process, follow these steps:

1. Export donation data from Fundraise Up: Generate a report that includes Payment IDs for the desired time period.
2. Access transaction records in Stripe and PayPal: Log into your payment processor accounts to retrieve the necessary transaction data.
3. Match Payment IDs: Compare the Payment IDs from your Fundraise Up export with those in Stripe and PayPal to identify corresponding transactions.
4. Verify donation details: Confirm that the donation amounts and other relevant details align across Fundraise Up and the payment processors.
5. Address discrepancies: If you encounter any discrepancies during the reconciliation process, investigate and resolve them to maintain accurate financial records.

Tips for Efficient Reconciliation

To further optimize your reconciliation process, consider the following tips:

• Establish a regular reconciliation schedule to avoid backlogs and ensure timely financial reporting.
• Utilize Fundraise Up's filtering options to generate targeted exports for specific time periods or donation types.
• Document your reconciliation process and train relevant team members to ensure consistency and accuracy.