All campus credit card revenue and fees are deposited/charged to one central campus bank account. General Accounting reviews the bank statement and distributes the revenue and fees to GL accounts designated by each merchant. Departments are responsible for recording their revenue and fees to the appropriate department revenue and expense accounts in coordination with General Accounting.
Credit card reconciliation can be a complex process requiring review of multiple statements to ensure revenue and fees are accounted for appropriately. The following is a list of steps in the credit card reconciliation process:
- All credit card receipts from all campus departments are deposited via Bank of America merchant services to the UCSB bank account at Bank of America
- Accounting clears the UCSB bank account by crediting campus merchants for the deposits and debiting departments for the fees associated with acceptance of credit cards on the campus
- Bank details of merchant transactions are posted weekly to the General Ledger, and can be viewed in Data Warehouse (use EZ Access “Pending Transactions Inquiry”)
- Based on the Bank of America statement, Accounting posts to the department/merchant’s revenue account for the deposits and expense account for the fees
- If using a balance sheet (clearing) account, the department needs to prepare a journal that debits their clearing account, and credits the appropriate department account for the income; the department also prepares a journal that credits their clearing account, and debits the appropriate department account for the fees. Object Code 7226 should be used for this entry. The fees are one month in arrears
- Bluefin & Authorize.net gateway fees are recorded separately
- The department should reconcile the transactions between the transactions posted to the General ledger, the Bank of America merchant account statement, Gateway deposit records (if applicable), and any internal records kept for deposits