Global reconciliation and how to master it: lessons from EBANX

There are two words that, put together, might sound like a nightmare for every payments manager: global reconciliation. In a world where distances have been shortened and boundaries have become fluid, more and more companies are selling their products and services to a global market – which brings up the challenge of reintegrating all the transactions data from different countries, currencies, and providers, with different periodicity and formats. This is where global reconciliation enters.

Take, for instance, a US-based company that sells its products to several countries in Latin America, just like many of our clients at EBANX. Keeping track of all this data and interpret this immense volume of information can be grueling. Each country has its own specificities, banking regulation, and rules – in LATAM, one of the fastest-growing ecommerce markets in the world, there are more than 20 different currencies! Dealing with currencies, by the by, is one of the main challenges in this process, since it can lead to major inconsistencies in a company’s records.

Ultimately, global reconciliation determines the real margin for each sales operation since it can bring to light all operational inefficiencies. This is why it is so important to address this challenge on a daily basis, and not only for financial statements or quarterly reports – so that the company can keep track of all the money that comes in, from all sources and countries, and above all, monitor the financial health of the business activity itself.

At EBANX, a major player in the payments industry worldwide, which processes over 150 million transactions per year for more than 1,000 international companies selling to Latin America, we found some ways to master the process of global reconciliation.

Since our foundation in 2012, we have been investing heavily in this area, developing our own global reconciliation system, as well as creating a dedicated team to follow all processes and solve any problem as quickly as possible.

It took us three years to develop our in-house software, which was named Wayne – on behalf of Bruce Wayne, the secret identity of Batman, the superhero from comic books. The idea was simple: behind any life-saving experience, there is a tough, hard worker person (or, in this case, a really good, vital system).

Thanks to its in-house technology, EBANX can connect directly to every player in the payments industry in LATAM, which eases to identify any problem and enables our clients to customize their reports. It is a software tailored to the Latin American payments market, which knows exactly what rules apply to each provider, bank, or acquirer in the region, in all of the eight countries we operate. Currently, any merchant at EBANX can reconcile data from over 100 different partners in a unique report, which saves time, investment and reduces operational inefficiencies.

All of this reduces costs for the company and increases the attractiveness of new global markets – which is especially important in the case of LATAM, where ecommerce has been growing around 20% per year. More than this, it enhances the selling experience not only for the merchant, but also for the final consumer. Through global reconciliation, a company can quickly identify any problem in the transactions, which can lead to correction actions and a much better customer experience for its consumers.

This might be an exhaustive, overwhelming process to lead – and we are convinced that it is only possible when you have a deep knowledge of the local market, just like we have at EBANX. You must know which are the main players of your market, who to contact in case of any problem, what does the local legislation say. Some of these issues require a C-level approach to get solved. And this is almost impossible to do when you are outside the market, especially in LATAM.

To sum it up, the global reconciliation process is critical for any business, regardless of size, as it allows a company to see its business in every aspect – revenue, costs, and setbacks. This process can be extremely time consuming and costly, so it is very important for the company to connect with the right partner to deliver this solution. At EBANX, we have the expertise of working this through for over 1,000 international companies that sell in Latin America.

About Wagner Ruiz

With extensive knowledge in cross-border trade and electronic payments which have been acquired through over 15 years of experience within the financial world, Wagner Ruiz is responsible for financial operations at EBANX, being the co-founder and CFO of the company. A global financial expert, Wagner designed all EBANXs cross-border payments infrastructure and continues to be the mastermind behind the financial architecture linking EBANX to the world.

About EBANX

EBANX is a payments company that offers end-to-end payment solutions for global companies wanting to expand in Latin America. Founded in 2012 to bridge the access gap between Latin Americans and international websites, EBANX operates across the entire cross-border ecommerce transaction flow for international companies. It has operations in Brazil, Mexico, Argentina, Colombia, Chile, Peru, Ecuador, and Bolivia, and offices in Brazil, Mexico, Uruguay, Argentina, US, the UK, and China.