Credit Card Deposits

Credit card deposits are sent electronically to the bank directly by each merchant department.

All credit card deposit data is entered into the FMS by Revenue Accounting from information received directly from the bank. Each day, Revenue Accounting credits the clearing account for transactions recorded by the bank for each merchant, using the Fund, Dept ID and PG provided by the department.

Departments are responsible for preparing journal entries to distribute the revenues and taxes payable out of their clearing account. Revenue Accounting also books discount fees directly to the appropriate 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

  • Run your department query to extract daily list of credit card deposits from the clearing account.
  • Match each deposit amount.

Clearing Deposit Transactions

  • Prepare a journal entry to transfer the daily deposits and returned items from your clearing account to the appropriate revenue or tax remittance chart fields.
  • Refer to Processing Journal Vouchers procedures. Prepare these JVs 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

Visa-CIBC 241100
Visa-Chase 241150
Visa-TD 241200
Visa-Moneris 241300
MasterCard-Chase 241350
MasterCard-Moneris 241500
MasterCard-TD 241600
Amex 241700

The following speed charts/type can be used to distribute taxes:

  • GST - GSTPAY
  • PST - PST
  • Hotel Tax - HTLTAX

If there are discrepancies between the amounts you have cleared and the amounts recorded on your transaction tape, please follow up with the appropriate payment card acquirer.

Credit Card Houskeeping

Retrieval Request

  • If you receive request for backup, you should immediately locate your originating credit card receipt or chit for the transaction and fax it to the payment card acquirer.

Chargeback (returned item)

  • Upon receipt of “Chargeback Notification” from the VISA/ MasterCard acquirer, Revenue Accounting will verify the debit at the bank account and reverse the original entries by entering a FMS journal.
  • A copy of the “Chargeback Notification” and the reversal journal will then be sent to the merchant department for further action.
  • For Enrolment Services ONLY, Revenue Accounting will forward the “Chargeback Notification” to them to reverse entries and follow up.

Discount Fee

  • Based on the monthly user activities, Revenue Accounting allocates the discount fees to the merchant departments via direct journal posting to 657100 except for FirstData, where discount fees are posted to 241600 automatically at beginning of the month and then later adjusted to 657100.

Analyzing Credit Card Deposits Monthly Procedures

At month-end you should:

  • prepare an analysis of your clearing account
  • forward a copy to Revenue Accounting.

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