Key takeaways
What this article covers, in order:
- Why your card sales and your deposits never quite agree
- Start with the terminal's settlement report
- A worked day that adds up
- How to record it in the books
- Monthly fees and the settlements that never come
- Refunds, surcharges and tips on the terminal
EFTPOS reconciliation means proving that every dollar your card terminal settled actually landed in your bank account, batch by batch. The trick is to match the bank against the terminal's settlement report, not against your point-of-sale sales total, because the terminal also handles cash-out, settles at its own cut-off time and sometimes splits one day into two or three deposits. Get the terminal side right and the daily takings fall into place.
Why your card sales and your deposits never quite agree
Lucas runs a bakery in Ballarat with two EFTPOS terminals, one at the front counter and one on the coffee window (he's illustrative, not a customer). His point-of-sale said card sales on Thursday 8 Oct 2026 were $2,640.00. On Friday the bank showed two deposits that added up to $2,610.00. On Monday another $177.30 turned up. Nothing matched his sales figure, and yet nothing was actually wrong.
Here's what usually sits between "card sales" and "money in the bank":
- Cash-out. A customer buys a $6 pie and asks for $50 out. The terminal settles $56. Your till is $50 lighter.
- Cut-off time. The terminal closes its day when it settles, not when you lock the front door.
- More than one terminal. Each terminal usually settles as its own batch.
- Split settlements. Some card types are settled separately under their own merchant agreement (charge cards are the usual example), often a day or two later and net of their own fee.
- Refunds and surcharges. Both run through the terminal and change the settled total.
- Fees. Taken out of each settlement, or charged once a month, depending on your merchant agreement.
If you only ever compare the bank to your POS sales report, every one of these looks like an error.
Start with the terminal's settlement report
Most terminals print or email a settlement report (some call it an end-of-day or batch report) each time they settle. It shows purchases, refunds, cash-out and the net amount being paid to you, usually broken down by card type. That report is your bridge. The POS tells you what you sold. The settlement report tells you what the bank is about to pay. The bank statement tells you what it did pay.
A few terminal habits make EFTPOS reconciliation far easier:
- Settle at the same time every day. If your terminal auto-settles at 9.30pm but you trade until 10pm, the last half hour lands in tomorrow's batch. That's fine, as long as you know it happens.
- Keep every settlement report. Photograph it or save the email against the trading date.
- Note the terminal ID on each report. With two terminals, you need to know which batch is which.
- Check the settlement time with your bank or merchant provider. When the money lands depends on your arrangement, so ask once and write it down.
A worked day that adds up
Lucas's Thursday 8 Oct 2026. First, what the POS says:
| POS end-of-day | Amount |
|---|---|
| Total sales | $3,420.00 |
| Paid by card | $2,640.00 |
| Paid by cash | $780.00 |
Now the two terminal settlement reports:
| Terminal settlement | Front counter (T1) | Coffee window (T2) | Total |
|---|---|---|---|
| Card purchases | $1,580.00 | $1,060.00 | $2,640.00 |
| Cash-out given | $100.00 | $50.00 | $150.00 |
| Total settled | $1,680.00 | $1,110.00 | $2,790.00 |
| Of which: charge cards settled separately | $180.00 | $0.00 | $180.00 |
| Paid by main settlement | $1,500.00 | $1,110.00 | $2,610.00 |
Check: $1,580.00 + $1,060.00 = $2,640.00, which agrees with POS card sales. $1,680.00 − $180.00 = $1,500.00.
Then the bank:
| Date | Bank deposit | Matches |
|---|---|---|
| Fri 9 Oct 2026 | $1,500.00 | T1 main settlement |
| Fri 9 Oct 2026 | $1,110.00 | T2 main settlement |
| Mon 12 Oct 2026 | $177.30 | T1 charge cards, $180.00 less $2.70 fee |
| Mon 12 Oct 2026 | $630.00 | Thursday's cash banking |
And the cash drawer, which is where cash-out bites:
| Cash count | Amount |
|---|---|
| Opening float | $400.00 |
| Add: cash sales | +$780.00 |
| Less: cash-out handed to customers | −$150.00 |
| Expected cash in drawer | $1,030.00 |
| Keep as tomorrow's float | −$400.00 |
| Cash to bank | $630.00 |
Now the proof. Total into the bank from Thursday's trade: $1,500.00 + $1,110.00 + $177.30 + $630.00 = $3,417.30. Add back the $2.70 fee and you get $3,420.00, which is exactly the POS sales total. The $150.00 of cash-out left the drawer and came back through the terminal, so it washes out.
How to record it in the books
We'd use a card clearing account and a cash clearing account, the same idea you'd use for any takings. The day goes in like this:
- Sales $3,420.00: card clearing $2,640.00, cash clearing $780.00.
- Cash-out $150.00: move it from cash clearing to card clearing. It isn't a sale and it isn't an expense. It's your own cash swapping form.
- Deposits: each bank line clears out of the matching clearing account.
- Charge card fee $2.70: merchant fees expense, out of card clearing.
Card clearing then looks like this: $2,640.00 + $150.00 = $2,790.00 in, and $1,500.00 + $1,110.00 + $177.30 + $2.70 = $2,790.00 out. Zero. Cash clearing: $780.00 − $150.00 = $630.00 in, $630.00 banked. Zero.
If either clearing account doesn't come back to zero, something is still in transit or something's wrong. A balance that sits there for more than a few business days deserves a look.
Monthly fees and the settlements that never come
If your main merchant fees are charged as one debit at the start of the following month, code that debit to merchant fees on its own. Lucas's October fees came out as a single $68.40 debit on 2 Nov 2026. It doesn't touch any daily settlement, which is why his main settlements match the terminal reports to the cent.
The opposite problem is a settlement that never arrives. It happens more than you'd think: a terminal that didn't settle overnight, a batch held for review, a new terminal not yet linked to your account. When a clearing balance won't go away, pull the settlement report for that date and ring your merchant provider with the terminal ID and the batch total. Don't write it off.
Refunds, surcharges and tips on the terminal
These three change the settled total, so they need their own lines:
- Refunds reduce the batch. Record them against sales (or a refunds account) on the day they're processed, not the day of the original sale.
- Surcharges you add for card payments are part of your income. If your POS doesn't record the surcharge but the terminal does, the settlement will be higher than POS card sales. Pick one source and use it consistently.
- Tips keyed into the terminal belong to staff, not the business. They arrive inside the settlement, so they go to a tips payable account, not sales, and clear when you pay them out.
The terminal-side checklist
- [ ] One settlement report per terminal per day, saved against the trading date
- [ ] Terminal batch totals add up to POS card sales plus cash-out, less refunds
- [ ] Cash-out moved from cash clearing to card clearing
- [ ] Each bank deposit matched to a terminal batch, not to a calendar day
- [ ] Split settlements tracked until they land, with their fee recorded
- [ ] Card clearing and cash clearing back to zero by the end of the week
- [ ] Monthly merchant fee debit coded to merchant fees
Keep GST coded correctly on sales and fees as you go; your BAS agent or accountant handles lodgement.
How HelloBooks helps
Connect your business bank account (most Australian banks and cards work), or import a CSV statement if you'd rather. Settlement deposits land in a review list, where you confirm or change the category so a batch clears against card clearing instead of being coded straight to sales.
The reconcile screen lines your bank statement up against your ledger with an AI match suggestion on each line, a confidence score and the reason it picked that match. You only work through what's left over, and you can unmatch in one click if a suggestion is wrong. Once the month is reconciled and signed off you can lock it, and any reopening is logged. More on that on the bank reconciliation page.
Free is A$0 with no card and no expiry, with 1 live bank feed and up to 200 transactions a year. With two terminals settling every day, a busy shop will pass that quickly, so look at Pro at A$30 a month for unlimited bank connections and AI auto-categorisation. Plans are on the pricing page.
FAQs
Why doesn't my EFTPOS settlement match my card sales?
Usually because of cash-out, refunds, surcharges, a card type that settles separately, or fees taken out before payment. Match the bank to the terminal settlement report first, then reconcile the settlement report to your POS.
What time does EFTPOS settle?
It depends on your terminal's settlement time and your bank or merchant provider. Check your terminal settings and ask your provider when funds land, then use that as your expected timing.
How do I record EFTPOS cash-out?
As a transfer from cash clearing (or the till) to card clearing. It isn't income and it isn't an expense. The terminal pays it back to you inside the settlement.
I have two terminals. Do I reconcile them together?
Reconcile each terminal's batch to its own deposit. Combine them only when you check the daily total against the POS.
What if a settlement never arrives?
Find the settlement report for that date and terminal, then contact your merchant provider with the terminal ID and batch total. Leave the amount in card clearing until it's resolved.
Match the bank to the terminal, the terminal to the till, and you'll never chase a phantom $150 again.
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