In which step does the payment brand network provide complete reconciliation to the merchant's bank?

The correct step in which the payment brand network provides complete reconciliation to the merchant's bank is during the clearing phase. Clearing is the process where transaction details are confirmed, and the various parties involved in the payment transaction—such as the payment processor, acquiring bank, and issuing bank—communicate the details required for reconciliation.

During clearing, the payment brands facilitate an exchange of data that allows banks to confirm the funds to be transferred. This data ensures that the merchant's bank receives accurate and complete information about the transactions processed, enabling effective reconciliation of the merchant's accounts. This step is essential for ensuring that both the merchant and the cardholder’s financial institutions have the same understanding of the transaction details before actual fund transfers occur.

In contrast, authorization occurs first, where a transaction is approved by the issuing bank. Settlement follows, involving the transfer of funds per the cleared details, and processing includes the entire mechanism of handling the transaction from initiation to completion. While these steps are all significant in the payment lifecycle, it is the clearing step that is critical for ensuring reconciliation between the merchant’s bank and the payment brand network.