PROCESSING CREDIT CARD DEPOSITS

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PROCESSING CREDIT CARD DEPOSITS Powered By Docstoc
					PROCESSING CREDIT CARD DEPOSITS
MERCHANT & DEPARTMENTAL USERS

OVERVIEW

    Credit card deposits are sent electronically to the bank directly by
    each merchant department. All credit card deposit data are entered
    into FMS by Financial Services from information received directly
    from the bank.

    Each day, Financial Services will credit a clearing account for
    transactions recorded by the bank for each merchant, using the
    Fund, Dept ID and PG provided by the department. Each
    department will receive, by e-mail, an Excel copy of the banking
    transactions (referred to as the Deposit Detail Worksheet).
    Departments will be responsible for preparing a journal entry to
    distribute the revenues and taxes payable out of their clearing
    account. Financial Services will charge interest and service charges
    directly to the appropriate revenue or expense accounts.

    Departments must ensure that their credit card clearing accounts
    balances are cleared regularly and reconciled monthly. These
    accounts must be zero at year end.

CREDIT CARD CLEARING – DAILY PROCEDURES
    Verifying Deposit Detail Worksheet

       1. Receive your e-mailed copy of the Deposit Detail Worksheet
          daily.
       2. Match each deposit amount with

               a. transaction tape total (if electronic card swipe is
                  used), or
               b. deposit slip (if manual deposit slip is prepared)

    Clearing Deposit Transactions

       3. Prepare a journal entry to transfer the deposits and returned
          items from your clearing account (based on the tape totals in
          #2) to the appropriate revenue or tax remittance chart fields.
          Refer to Processing Journal Vouchers procedures. Prepare
             these JV’s daily, to ensure departmental reports are
             accurate and that taxes collected are properly transferred to
             central accounts for remittance to government authorities.
             Clearing account numbers are:

                     Visa - CIBC                241100
                     Visa - TD                  241200
                     Visa - Royal Bank          241300
                     MasterCard-Bank of
                                                241500
                     Montreal
                     MasterCard-First Data      241600
                     Amex                       241700

          4. Distribute revenues and taxes payable to the appropriate
             account, Dept ID, funds and PG’s. The following speed
             charts/type can be used to distribute taxes:

                         GST           GSTPAY
                         PST           PST
                         Hotel Tax     HTLTAX
                         Liquor Tax    PST

          3. Follow-up discrepancies between the amounts you have
             cleared and the amounts recorded on your Deposit Detail
             Worksheet with the appropriate bank.

ANALYSING CREDIT CARD DEPOSITS – MONTHLY PROCEDURES

At the end of each month,

   1. Prepare an analysis of your clearing account.
   2. Forward a copy to Financial Services – Revenue Accounting.

At year end, ensure that the clearing accounts are cleared to zero.