Set Up an Expense Account for Merchant Discount Fees
How Do I...
To accept credit card payments from your customers, you must have an
online merchant account.
Merchant account providers usually deduct discount
fees and service charges from your bank account for the credit card
processing service that they provide. Your bank statements will
reflect various credit card processing fees (usually for a month-long
period).
Before you can record the merchant account discount fees in Sage 50
and reconcile your bank statements, you need to set up a merchant expense
account in your chart of accounts.
- From the Maintain
menu, select Chart of Accounts.
Sage 50 displays the Maintain Chart of Accounts window.
- Enter a new account ID that corresponds with the
expense area of your chart of accounts.
- Type a description for your account (for example,
CC Processing Fees).
Tip: Depending
on the detail you want to track, you may want to set up two merchant expense
accounts: CC Discount Fee (fees
charged for each transaction that is processed) and CC
Service Charge (monthly service charges and set up fees). If discount
rates are different depending on the credit card type (for example, America
Express, VISA/MasterCard, and Discover), you may want to enter and track
separate discount expenses (for example, AMEX
Discount Fee, VISA-MC Discount
Fee, and Discover Discount Fee).
- Select
as the account type, and select the Save
button.
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