Reconcile card network interchange and scheme fees from clearing files against processor invoices

Steps

1. Obtain the clearing data files from your processor or acquirer; these are typically fixed-width or CSV files in a processor-specific format derived from Visa BASE II, Mastercard IPM, or equivalent network clearing formats
2. Parse each transaction record to extract the interchange rate qualifier (IRQ) or interchange program identifier (IPI), the gross transaction amount, the interchange amount, and the assessment fees (scheme fees, network access fees) separately
3. Group parsed records by interchange category (e.g., Visa Retail, Visa Business, Mastercard Consumer Credit) and sum gross amounts and interchange charges per category; compare totals against the interchange fee schedule published by the network
4. Identify downgraded transactions by finding records where the IRQ indicates a base category (EIRF, Standard) rather than the expected qualified category; quantify the interchange premium paid on downgrades
5. Reconcile the per-transaction interchange sum to the processor's monthly interchange invoice line items; differences indicate either a processing fee markup, a posting-period mismatch, or a reconciliation file that covers a different date range than the invoice