Kosh AI Checks Every Acquirer's MDR Against What You Were Actually Charged, So Nothing Gets Deducted Without an Explanation
A merchant account rarely gets charged the exact rate quoted at onboarding. Interchange changes, scheme fees shift, and a card type gets miscategorized, and all of it shows up as a slightly smaller settlement than expected. Most finance teams never check closely enough to notice. Kosh AI does the check on every single transaction.
Kosh AI connects to every acquirer and processor you hold a merchant ID with, so transactions from each one land in a single reconciliation view instead of separate portals.
Kosh AI works out what each transaction should have cost based on your contracted rates and card type, then compares it to what the acquirer actually charged.
Beyond fees, Kosh AI confirms the transaction itself actually settled, not just that a batch total looked roughly right.
Kosh AI rolls up effective MDR by acquirer over time, so a renewal conversation starts with real numbers instead of the rate card from two years ago.
When a transaction, fee calculation, and deposit are matched, Kosh AI keeps the full trail attached, so there's nothing to reconstruct when an acquirer dispute comes in.
You don't need to renegotiate your acquirer contracts before you can see where the money is going. Kosh AI starts from the rate card you already have and checks every transaction against it.
No two merchant setups run the same mix of acquirers and processors. Kosh AI fits the accounts you manage, the industry you operate in, and how your finance team is structured.
Card settlements are checked against contracted MDR and interchange rates for every card type.
Settlement reports from bank-led acquiring relationships are reconciled alongside third-party processors.
Multi-currency settlements are matched with FX variance tracked separately from genuine fee shortfalls.
Chargebacks and refunds are tracked against the original transaction so the net merchant position stays accurate.
High transaction volumes across multiple merchant IDs are checked for fee leakage without a manual review each week.
Fast settlement cycles across multiple acquirers are matched and fee-checked as quickly as they post.
Higher-value transactions with delayed settlement timelines are matched down to the booking, not just the batch total.
Merchant-of-record settlements are reconciled alongside the commissions and payouts owed to sellers.
Kosh AI centralizes fee and settlement checks for high-volume merchants, giving finance real-time visibility across every acquirer.
Kosh AI gives smaller finance teams automated fee and settlement checks without adding headcount as transaction volume grows.
Most reconciliation tools check whether a batch total roughly matches. Kosh AI checks whether you were charged the rate you actually agreed to, transaction by transaction.
A card miscategorized into a higher interchange tier is caught the same cycle, not discovered a year later in an annual fee audit.
Effective MDR by acquirer, tracked over time, gives your negotiation real leverage instead of a rate card from the last contract.
A transaction that never settles is flagged within the same cycle, not discovered weeks later during a cash shortfall review.
Every merchant account is reconciled in one system instead of one spreadsheet per acquirer.
A documented transaction-to-settlement trail makes it easier to resolve acquirer discrepancies without back-and-forth.
Transaction volume can grow without a proportional increase in manual settlement matching work.
Kosh AI connects directly with all major banks and ERPs, enabling real-time data sync for faster, more accurate reconciliations—no manual uploads, no delays.
Most reconciliation processes stop at confirming a settlement batch total looks right. That misses the fee leakage hiding inside the batch. Kosh AI checks one level deeper.
Kosh AI recalculates the expected fee for every transaction against your actual contracted rate, not just a batch estimate.
A fee variance comes with the acquirer, card type, and expected rate attached, not just a line in a report.
Every resolved exception feeds back into how Kosh AI matches that acquirer's settlements going forward.
From a single acquiring bank to a dozen regional processors, Kosh AI handles the reconciliation logic each one needs.
Merchant reconciliation software checks every transaction a business processes against what an acquirer actually settled for it, and against the contracted MDR the business agreed to pay. Most reconciliation tools stop at confirming a batch total roughly matches. Kosh AI goes a level deeper, recalculating the expected interchange and scheme fee for every individual transaction and flagging anything that doesn't match the agreed rate. That difference matters, because fee leakage from a miscategorized card type or a stale rate card rarely shows up as a dramatic error. It shows up as a settlement that's consistently a little smaller than it should be, month after month, until someone finally adds it up.
Most reconciliation processes check whether a settlement batch total is roughly right. Kosh AI checks whether every transaction inside it was charged correctly.
| What You're Comparing | Transaction-Level Reconciliation | Batch-Level or Manual Reconciliation |
|---|---|---|
| Checking MDR Accuracy | Expected fee recalculated for every transaction against the contracted rate. | Batch totals are eyeballed; individual fee errors go unnoticed. |
| Spotting Unsettled Transactions | Transactions that never settle are flagged within the same reconciliation cycle. | Unsettled transactions often surface only when a cash shortfall forces a review. |
| Handling Multiple Acquirers | Every acquirer and MID is reconciled together in one system. | Each acquirer usually needs its own spreadsheet and its own process. |
| Acquirer Renewal Negotiations | Effective rate by acquirer tracked over time, ready for the next conversation. | Negotiations start from the rate card, with no visibility into what's actually charged. |
| Confirming Bank Deposits | Settlements are matched through to the actual bank deposit that funds the account. | Bank deposits are checked separately, often without being tied back to specific transactions. |
| Scaling With Transaction Volume | A growing transaction volume or a new acquirer doesn't require more manual matching staff. | Transaction growth usually means more hours spent reconciling settlements every cycle. |
Set up Kosh AI, load your acquirer rate cards, and see within the first close cycle whether your settlements actually match what you agreed to pay.
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When a business signs an acquirer agreement, it comes with a rate card: a quoted MDR per card type, plus interchange and scheme fees that get passed through. In practice, very few finance teams ever check whether the fee actually deducted on a given transaction matches that rate card. A debit card gets processed as a premium credit card. A domestic transaction gets routed as international. A promotional rate expires without anyone updating the contract. None of these show up as an obvious error on a bank statement; they just quietly shrink the settlement a little each time.
The case for merchant reconciliation software isn't really about matching transactions, which most finance teams already do at some level. It's about verifying the fee itself, transaction by transaction, which almost nobody does because it's too tedious to do by hand. A single miscategorized card type might cost a few rupees on one transaction, but multiplied across thousands of transactions a month, it becomes a real line item that nobody budgeted for and nobody is tracking down.
There's also a negotiating angle that's easy to miss. When an acquirer contract comes up for renewal, most finance teams negotiate from the rate card, not from what they've actually been paying. A tool that tracks effective MDR by acquirer over the life of the contract gives that renewal conversation real data: not what the acquirer says the rate is, but what it has actually been.
It's not only for businesses running a dozen acquirers. Here's who tends to benefit most.
If settlements feel consistently a little short but nobody can point to why, a transaction-level fee check usually finds the answer.
The moment a second acquirer is added, manual reconciliation effort roughly doubles, which is exactly where automation pays off.
Businesses processing thousands of transactions a day can't realistically spot-check fees manually without missing real leakage.
Settlements across many storefronts add a reconciliation step that's easy to under-track without automation.
Effective rate history by acquirer turns a renewal negotiation from a guess into a data-backed conversation.
Knowing exactly which settlements have cleared, and at the right rate, matters for planning.
No tool is a perfect fit for every business. Here's an honest look at what merchant reconciliation software gets right, and what's worth planning around before you adopt it.
Merchant reconciliation software matches every transaction a business processes against the settlement and bank deposit it's eventually paid out in, and checks whether the MDR charged matches the contracted rate. Kosh AI does this at the transaction level, not just the batch level, flagging fee variances and unsettled transactions as they happen.
Checking batch totals only confirms the overall number looks roughly right. It won't catch a single card type being miscategorized into a higher interchange tier, which quietly shrinks every transaction of that type. Kosh AI recalculates the expected fee per transaction, so fee leakage is caught at the source.
A transaction that never settles, or an MDR that's consistently a bit higher than contracted, can go unnoticed for months without reconciliation. Merchant reconciliation software catches both as they happen, which matters for accurate revenue reporting and controlling payment costs.
In practice, any acquirer your business works with can be reconciled, including major card networks, bank-led acquiring relationships, and regional processors. Kosh AI supports multiple acquirers and processors out of the box.
Merchant reconciliation checks individual transactions against contracted fees and matches them to settlements. Settlement reconciliation is a closely related process focused on confirming settlement reports tie out to bank deposits. Kosh AI supports both, built for how each business actually gets paid.
Yes, most merchant reconciliation software is built to pull transaction data from common point of sale and billing systems and settlement data from major acquirers. Kosh AI connects to leading acquirers and processors, alongside ERPs like SAP, Oracle, NetSuite, and QuickBooks, so data flows in without manual exports.
No, but it takes most of the manual fee-checking and settlement-matching work off their plate. Kosh AI handles routine matching automatically, so your finance team can focus on investigating genuine exceptions and acting on fee leakage, not reconstructing the trail by hand.
It gets flagged as an exception within the same reconciliation cycle, with the acquirer, card type, expected rate, and actual charge already attached. From there, it's routed for review instead of sitting unnoticed in next year's fee audit.
Most businesses can have their main acquirers reconciling automatically within a few weeks, since the software connects to accounts you already use. Kosh AI follows a similar timeline, with businesses running many acquirers typically taking 2 to 3 months to fully configure.
Start with how many acquirers you work with and whether you've ever actually verified MDR against your rate card. From there, compare options on acquirer connectivity, transaction-level fee checking, and how well the audit trail supports acquirer disputes. Kosh AI is built around exactly that checklist, but it applies to any software you're comparing.
Book a demo and watch Kosh AI check your own transactions against your contracted acquirer rates.
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