The method in which merchant discount fees appear on your bank statement depends on how discount fees are deducted by your merchant account provider. Discount fees are deducted in two ways: after credit card funds are deposited (with your online merchant account) or before credit card funds are deposited.
Many merchant account providers calculate discount fees based on the total amount of credit card transactions during the statement cycle (usually a month) and charge a single fee at the end of the cycle. Your monthly bank statement lists each credit card deposit and charges a single monthly discount fee at the end of the month.
Some merchant account processors deduct fees when daily (or weekly) credit card deposits are made. In this case, your monthly bank statement lists two daily (or weekly) transactions: the total credit card deposit and the fee for each deposit.
Note: Sage Payment Solutions arranges for collected credit card funds to be deposited to your business's bank account within five business days of transaction fulfillment (when the daily batch is processed). Discount fees are recorded separately and deducted the same day that the deposit takes place. For merchant account operating procedures, fee schedules, and statement information see the Virtual Terminal User's Guide, available from the Help menu in Virtual Terminal.
If merchant discount fees are deducted separately and after credit card funds are deposited, you must record the discount expense in Sage 50. This ensures that your Sage 50 cash account balance reconciles with your bank statements and that your financial statements are accurate.
Merchant discount fees are not listed on your bank statement. Instead, your statement shows the "net” deposit amount (the total of all your credit card payments for that day minus the total merchant discount fees charged for that day).
If merchant discount fees are deducted before credit card funds are deposited, you must record the discount expense in Sage 50. During account reconciliation, you must manually clear these expense transactions to match your bank statement totals.