Bank accounting, analysis and audit

1-table. Information about issued banking cards as of April 1, 2022¹
As of April 2022 1, the People's Bank is the bank that sells or issues the most plastic cards in terms of the number of bank cards received by customers of commercial banks on an order basis. The main reason for this is that this bank is a state bank and the accounts of retirees are in the People's Bank. Nearly 6 million bank cards have been handed over to their owners. Next up is Agrobank, with more than three million and four hundred bank cards used by customers of this bank.
3. Foreign experience of accounts with plastic cards
Credit card sales are when customers pay for a product or service with a credit card. Payments to your business come from the customer’s credit card company, not the customer directly.
Because of this, there are two things you need to keep in mind about credit card sales:

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  You might not receive payment from the customer’s credit card company until a later date;
  
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  You are responsible for handling credit card merchant fees that come with accepting this type of payment.
  

If you want to begin accepting credit card payments, you need a point of sale (POS) system with a credit card reader. Again, accepting credit card payments comes at a cost—in addition to the cost of the reader or monthly flat fees.
In some cases, you might be able to pass along swipe fees to customers. But, some state laws prohibit businesses from passing along these fees. Not to mention, some customers might be turned off from having to pay the fees. Because of laws and disgruntled customers, you must be prepared to cover credit card merchant fees.
Credit card merchant fees vary depending on what merchant account provider you choose. Generally, fees are a percentage of a credit card sale. But, fees might also be a flat rate per transaction or a combination of a percentage and flat rate. Average fees for MasterCard, Visa, Discover, and American Express tend to range from 1.43% – 3.5%.
When you pay or receive credit card processing fees, do not record them as part of your sales revenue. Instead, credit card accounting principles require that you list them as expenses. First, let’s go over the accounts involved in a journal entry for credit card purchases:

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  Cash
  
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  Credit Card Expense
  
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  Sales Revenue
  
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  Accounts Receivable (if applicable)
  

Next, you need to know which accounts to debit and credit. Use the chart below to see which types of accounts are increased and decreased by debits and credits. Your Cash and Accounts Receivable accounts are assets, which means they’re increased by debits and decreased by credits. Credit Card Expense accounts are expense accounts, so they are also increased by debits and decreased by credits. Because the Sales Revenue account is a revenue account, it is increased by credits and decreased by debits. How you record a journal entry for credit card sales depends on whether you receive immediate payment from the card issuer. Regardless of whether you receive immediate or delayed payment, use the Cash, Credit Card Expense, and Sales Revenue accounts. However, only use the Accounts Receivable account for delayed payments.
In most cases, you receive funds from a credit card purchase immediately. When you do, you must make a compound journal entry (i.e., there’s more than one debit, credit, or both). So, how much should you debit and credit each account? To find out, subtract the credit card merchant fees from the total sale amount. This represents how much money your business actually made from the sale. In your journal entry, you must:

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  Debit your Cash account in the amount of your Sale – Fees
  
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  Debit your Credit Card Expense account the amount of your fees
  
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  Credit your Sales account the total amount of the sale
  

Remember that the sum of your debits to the Cash and Credit Card Expense accounts must equal the amount you credit your Sales account. When you receive immediate payment, your journal entry for credit card purchases should look like this:

Example:
Let’s say you make a $500 sale to a customer paying with a credit card. The credit card fee is 2.5%.
First, determine the amount of the credit card fee by multiplying 2.5% by the total sales:
$500 X 0.025 = $12.50
Your credit card processing fees are $12.50. Debit your Credit Card Expense account $12.50.
Now, subtract $12.50 from your total sales of $500 to determine how much cash your business brought in:
$500 – $12.50 = $487.50
Debit your Cash account $487.50. And, credit your Sales account $500.