A reconciliation file is a machine-readable report that a bank, acquirer, processor or payout provider delivers to a client so that the client can check its own records against the provider's. It lists each transaction for the period with identifiers, amounts, currencies, fees, status and the settlement batch it belongs to, together with refunds, chargebacks and other adjustments. It is the main input to payment reconciliation.
Files are typically produced daily and delivered over SFTP, or made available through a reconciliation API. Formats vary. Processors often use their own comma-separated layouts, while banks supply standard statements such as camt.053 or the older MT940. A useful file lets the client tie every line to an order or ledger entry and explains the difference between gross sales and the net amount paid into the bank. It differs from a settlement report mainly in level of detail: the latter usually summarizes the payout, while the reconciliation file itemizes it.