Credit card receivables

Hi I'm setting up a credit card account for the first time and would appreciate some help. I'm using a single merchant for all the credit cards I would be accepting so set this up as the Asset account & an expense account for the fees. However, they charge 2 different fees regardless of the credit card - one is for swiped & the other is for remote. On top of the fee for the remote payments, they charge an additional .15 cents per transaction.

I've tried entering this in the set-up menu but it would not let me do a second line for the same cards. Has anyone done this before and if so, how can I get around this?

Thanks

Parents
  • 0

    There is no reason to set up all the various fees that may be charged as it should all go into one expense account.

    When you get the merchant provider stmt then you can create one journal entry to credit the asset account and debit the bank account as shown on bank stmt while also debiting the expense account for the fees charged.

    I don't even have the expense account set up on the Accepted credit card - just the asset account.

  • 0 in reply to Smith and Co

    I should also mentioned that by entering the discount fees then your asset account will not reflect the full interac amount. There are various methods that merchant providers use to charge for their fees. Some deduct the fee off every interac receipts prior to depositing into bank account and others will deposit the full amount and deduct a fee as a separate amount from the bank account.

    The other issue is that there are various fees charged now for credit card depending on the type of credit card - so plain jane VISA cards or points/awards VISA cards or USA VISA cards all have different fees.

    Check first as to how these Debit/Credit cards are being deposited into your bank account.

  • 0 in reply to Smith and Co

    Thank you smithco - the merchant I'm using charges the same fees regardless of the credit card. They will deduct their fees before depositing it into the bank.

  • 0 in reply to Yuvina

    ok I'm curious, can you let me know who your provider is? I may be interested in using them for other clients.

    However it still doesn't help for what you are trying to do. You could set up two credit card such as Swiped and Remote but I don't know how you would handle the 15 cent per transaction fees.

    Likely the best scenario would be to have the credit/debit cards go into an asset account called something like Interac Clearing account and then do a monthly journal entry to transfer from that into the bank account as per the Merchant providers stmt.

Reply
  • 0 in reply to Yuvina

    ok I'm curious, can you let me know who your provider is? I may be interested in using them for other clients.

    However it still doesn't help for what you are trying to do. You could set up two credit card such as Swiped and Remote but I don't know how you would handle the 15 cent per transaction fees.

    Likely the best scenario would be to have the credit/debit cards go into an asset account called something like Interac Clearing account and then do a monthly journal entry to transfer from that into the bank account as per the Merchant providers stmt.

Children
  • 0 in reply to Smith and Co

    Hi, I did set up 2 CC as swiped & remote with their different rates. I also set up an expense account so the fees are deducted automatically. I haven't figured out how I'll do the .15 cents as yet but am sure I've seen a post on here with the question of the .15 cents so will try to find it again.

    I have set it up to go into an asset account and will do the journal entry each month when the statement comes in. I've tried it and it works but haven't had to deal with the .15 cents as yet!

    I'm using a company called SQUARE. Thanks for your help