MCA Reconciliation Requests: 7 Statements to Check Against the Records

MCA reconciliation (also called merchant advance reconciliation or cash advance reconciliation) is when the merchant advance company (sometimes called the funder) reviews the amount of money they withdrew from your account against its percentage of your actual sales. Their logic: same percentage of lower sales. The actual determination is more technical, however. To start you must check seven statements against the relevant section of your bank records. Read carefully what clause allows a reconciliation; what percentage and what counts as receipts; the review period they cover; total receipts, withdrawals actually taken, the difference between them, and how the request was delivered. A reconciliation request does not, on its own, lower withdrawals. It is the accuracy that matters, and the similarity to your bank’s deposit details.

How much thought the courts give is difficult to predict. In 2025 a New York appeals court rejected the merchant’s argument because the procedure was never used, but in 2026, a court found the funder never actually reconciled. The first case demonstrates the importance of using the reconciliation procedure in your contract. Review your bank statement, then compare it with what they say they took. If they made mistakes, find them and record them.

Pay Attention to When This Reconciliation Applies

First, look for a line, clause, or section titled “reconciliation,” “readjustment,” “true-up,” or “look-back” (note where you found it, in case they don’t remember). Second, does the clause apply only to past withdrawals, to future withdrawals or both? Whatever it is called, pay attention to when this reconciliation applies, what it includes and how it is done.

The definitions used in the contract sometimes determine the amount of the payment. Be clear on your contract’s percentage. This percentage may be part of the clause or a separate section. Also check the definition of receipts. Transactions like transfers, new funding, and refunds are not sales, so don’t count those. Compare what the agreement says against how they act, how the bank records show. If you saw differences, record those too.

In New York, disclosure law requires funders to let merchants know what is taken and when, but what they say and what they take may not be the same. Compare and analyze the payment schedule, calculations for payments, and total amounts. Do not take their explanation as the fact.

The review period has its rules too. Sometimes this is a specific time. Sometimes it is based on the dates covered by the written statements you submit. Some contracts will not let you ask again if you just requested one. Others don’t allow it after a certain time. Order copies of your bank statements, and any sales reports the agreement asks for. (A different review period may apply if you signed an amendment.) When you do the math, double check that the statements cover the same dates you used, then compare those against the withdrawals that they took out.

Multiply the Percentage by the Actual Receipts

Write down the monthly percentage and the actual receipts for the month. Multiply the percentage by the actual receipts. Then, find the withdrawals for that same month. Add all the withdrawals that month together and write down the total. For example: if the purchased percentage is 15% and your qualifying receipts for the month are $40,000, that means $6,000 should be withdrawn; but if you were charged $368 x 20 payments = $7,360, the difference is $1,360. That difference is not proof you are owed $1,360. You also need to follow your contract’s rules. Be careful when you make these calculations. Using different dates, counts, and calculations may raise questions about your accuracy.

Examine the dates, times and amounts. Check if what they told you they would do is what actually happened. Write this down. Count the dates carefully. In a single case, the Federal Trade Commission (FTC) alleged that a funder took money from merchants’ bank accounts, after the full amount was paid. The FTC alleged that one company took two debits on one day after bank holidays. What the contract says is not proof that it is true.

Follow the Agreed Method

Follow the agreed method. Use the address, email, portal, or other delivery method in your contract; calls may not count. Keep a dated proof you sent it, in case they say you didn’t. Ask for a written answer with their calculation.

They may offer to lower your withdrawals for a short time. You may hear what sounds like a deal, but an agreement is not final until the details are settled. Make sure you understand what the sales rep told you, get it in writing, and compare it against your contract. Check if it applies to the overpayment, has fees, includes a release, is part of a new agreement, or is only a break in payment, which may not fix the problem. When do full payments start?

What if they make excuses? Make your notes and keep everything you get. Be clear about what their answer claims, what they did, and what they asked for. A refusal, delay, or confusion does not by itself make the deal an illegal loan or cancel what you owe. If a lawsuit is filed, its deadlines still apply. Contact a lawyer for further information.

Reconciliation can still matter. In a 2026 case, the court treated over 3,000 contracts as usurious loans; there, requests were denied and there was no reconciliation. A decision by a court may not apply to your circumstances. But it can help you identify problems in the reconciliation. Keep your reconciliation requests even if they deny it.