Final answer:
For billing reconciliation, a $10 late fee is charged when a credit card payment is overdue, plus an additional $5 for each subsequent day the payment remains unpaid. Accurate daily reconciliation includes adding these charges for each day a payment is late.
Step-by-step explanation:
Daily Reconciliation of Credit Card Charges
For the purpose of daily reconciliation in billing, when a payment on a credit card is late a charge of $10 is immediately applied. Following this initial late fee, an additional $5 is charged for each day the payment remains unpaid. This means that if a payment is overdue, the customer will see an immediate charge of $10, and if the payment is still not made by the following day, an additional $5 is added to their account daily until the payment is received.
For example, if a payment is 3 days late, the total late fee would be the initial $10 plus $5 per day for the remaining 2 days, resulting in a total of $20 in late fees. Reconciliation of these charges is crucial for accurate record-keeping and ensuring that all fees and payments are accounted for in the billing process.