Overview
For the purposes of this document, reconciliation refers to the process by which Xendit compares and verifies records across multiple sources to ensure that the movement of funds is accurately reflected in Xendit’s internal ledgers. This process may include reconciliation between, but is not limited to:
transaction records recorded in the Xendit ledger
partner settlement reports or notifications from payment partners
bank settlement records or bank statements
payment network confirmations or clearing reports
Reconciliation is performed to confirm that funds received, settled, or returned by partners or financial institutions correspond accurately to the transaction states recorded within the Xendit system. We aim to reconcile and finalize transaction adjustments within 90 days from the date of transaction (“Reconciliation Timeline”) subject to Partner Dependencies as provided below.
Reconciliation exceptions may occur when funds move between Xendit and its payment partners but the corresponding transaction state in the Xendit ledger does not accurately reflect the final movement of funds. In such cases, Xendit will take reasonable steps to reconcile the funds, ensure accurate attribution, and maintain ledger integrity.
Default Resolution Process
Where Xendit can reasonably determine the merchant associated with the funds, Xendit may apply the following resolution actions without requiring a partner callback or additional API notification.
Balance Adjustment
Unreconciled Payments: Xendit may update status of the transaction resulting in a credit or debit to/from the merchant balance.
Returned Disbursements: Xendit may reverse the original disbursement upon receipt of returned funds from the partner, resulting in a credit to the merchant balance.
All adjustments will be reflected in the Client Dashboard and Transaction Reports. Merchants remain responsible for determining any downstream actions, including whether funds should be returned to end users or re-disbursed. Xendit will record the appropriate offsetting entries within its internal ledger to maintain accurate merchant balances, ensure transaction traceability, and support auditability.
Cleared Funds Requirement
Returned or received funds will be credited only after Xendit has confirmed receipt of cleared funds from the partner or banking institution.
Limitations
Xendit may be unable to immediately process a balance adjustment where:
Merchant ownership cannot be reasonably verified
Funds are subject to regulatory review, investigation, dispute, or suspected fraud
Returned funds are conditional, pending, or not yet cleared
Processing is restricted by applicable law or partner constraints
In such cases, Xendit shall exercise its discretion and take necessary actions consistent with its internal risk management frameworks and applicable regulatory compliance standards.
Partner Dependencies
Certain reconciliation exceptions are dependent on partner and banking notification processes and may not be communicated in real time. Delays in partner reporting may impact Reconciliation Timeline and Xendit shall not be held liable for such delays and their effects.
Repeated partner failures may result in operational reviews or changes to processing requirements.
Right to Operationally Resolve
Xendit reserves the right to operationally resolve reconciliation exceptions in a manner it reasonably determines ensures:
Accurate fund attribution
Ledger accuracy
Regulatory compliance
Proper safeguarding of funds
If subsequent information indicates that a credit was made in error, Xendit reserves the right to reverse, adjust, or set-off the merchant balance accordingly.