This article is applicable to you if you have access to Mastercard Real-time Feed. To learn more about how to get access to this feature, you can read this.
It is useful to understand how credit card processing works. Please read this Forbes article that explains it in detail. Simply put, there are two distinct operations that happen when after you swipe your credit card:
Authorization: This happens as soon as you swipe the card. The card details and purchase amount are verified and authorized by the issuing bank. Fyle creates an expense based on the authorization amount at the time of swiping
Settlement: The second stage of credit card processing—settlement—happens among the merchant, acquiring bank, card network and issuing bank. This can happen up to 14 days after authorization. The settlement amount may be different from the authorization amount. Fyle automatically changes the expense amount once settlement information comes in.
Here is a diagram describing what happens when Fyle receives authorization and settlement calls. When the settlement amount is different from the authorization amount, Fyle automatically updates the expense amount.
Caveat: if the expense has already been submitted as part of a report AND the report has been approved, then the expense amount does not get updated. We also skip the creation of an expense for an authorization amount of $1.
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