What Is a POS Adjustment on Your Bank Statement?
Decipher POS adjustments on your bank statement. Understand why these financial entries appear and how to confidently manage them.
A “POS adjustment” on your bank statement indicates a change or correction to an original Point of Sale transaction. Understanding these adjustments is important for managing personal finances and ensuring accurate financial records. They can signify money added to or deducted from an account, often related to debit or credit card purchases.
Understanding Point-of-Sale (POS) Adjustments
A Point of Sale (POS) is where a retail transaction is completed, whether in a physical store or online. It enables merchants to process payments and record sales. This system includes hardware (e.g., card readers, cash registers) and software for managing transactions, inventory, and customer data. Debit or credit card transactions are processed through a POS system and immediately post to your account.
An “adjustment” modifies an initial POS transaction. These adjustments rectify errors, apply discounts, process returns, or account for other changes impacting the final sale amount. For example, if a customer was overcharged or returned an item, a POS adjustment corrects the transaction. Adjustments can increase (credit) or decrease (debit) your account balance.
Common Scenarios for POS Adjustments
POS adjustments arise from actions initiated by the customer, merchant, or financial institutions. Each scenario modifies the original transaction.
Customer-initiated adjustments occur when consumers interact with a purchase after the initial sale. Returns and refunds are common; a returned item results in a POS adjustment credit. Partial refunds, due to incorrect scanning or price matching, also fall into this category.
Merchant-initiated adjustments correct issues or manage sales processes. This includes rectifying overcharges or undercharges from the initial transaction. Voided transactions (canceled before full processing) and corrections for processing errors also lead to these adjustments. Adjustments may also relate to loyalty programs or internal accounting needs.
Banks or payment processors can also initiate adjustments. Chargebacks, when a customer disputes a transaction, result in an adjustment as funds are reversed. Fraud reversals, where a fraudulent transaction is identified and canceled, similarly lead to an adjustment. Settlement discrepancies between merchant records and bank processing can also necessitate adjustments.
Managing and Verifying POS Adjustments
When a POS adjustment appears on your bank statement, identify and verify its legitimacy. Reviewing recent purchases, returns, or disputes with a merchant can clarify the adjustment’s source. Compare the adjustment with physical or digital receipts to cross-reference the transaction.
If the adjustment’s source is unclear, contact the merchant associated with the original transaction. They can provide details or clarify the reason. If you cannot identify or confirm the adjustment, or suspect an error, contact your financial institution.
If an adjustment is incorrect or unrecognized, dispute the transaction. For credit card billing errors or fraudulent transactions, consumers generally have 60 to 120 days from the statement date to dispute with their card issuer. The bank typically acknowledges disputes within 30 days and investigates within 45 to 90 days. For debit card transactions, you can call your bank to dispute pending charges, though online disputes usually require the transaction to be posted.