Credit Card Merchant Account

I need to create groups of accounts for a company in Tally or other accounting software. I have 2 merchant accounts with different credit card companies. One of them credits my account in their bank and only sends me a statement of amount and commissions - other sends me a cheque after deducting the commissions. - How do I account for such accounts while making entries in to accounting software? Thanks for your time and help.
I appreciate your answer Mr. Soni. My question was for a merchant account where customers pay me using their credit cards and then I receive the amount from credit card company. One directly credits my account with them while the other sends me a cheque. How do I open these accounts - under which group? Thanks again for your time.

If your are asking about the accounting entries, the rules are given below for your reference.

Rule 1
Debit what comes in. Credit what goes out
Rule 2
Debit the Expenses. Credit the Income
Rule 3
Debit the Receiver. Credit the Giver.

A sample entry is given below for payment for XYZ expenses using credit card:-
Dr XYZ expenses Rs 5000
Cr Credit Card a/c Rs 5000

Next, when you make payment (or deposit cheque in your Credit card a/c), the entry would be:-

Dr Credit Card a/c Rs 5000
Cr Your Bank a/c Rs 5000

Remarks:-
1) XYZ expenses ledger to be opened under group "Expenses Indirect"
2) Credit card a/c to be opened under group "Bank OCC a/c"
3) Your Bank a/c to be opened under group "Bank a/c"

For Tally Integration using RTSlink DLL, visit http://www.rtslink.com and sample programs visit http://rtslink.blogspot.com

2007-10-07 23:50:39 by CSSAsks

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Travel agencies are considered a high risk account in the merchant processing industry. You should have all business info available when contacting a processor including federal ID, business financials and history. For a new business, the personal history of the owner(s) is very important, so have all of your ducks in a row and be able to offer your personal financial information to validate the underwriting of your account. A credit score of 618 or below or a recent bankruptcy are examples of factors that will probably send you into high-risk territory and pretty rough rates. If you clear these things you should be in good shape.

Also, be very careful when choosing. Your nature of business will probably accept a high amount of rewards and corporate cards. These cards are considered non-qualified by many processors and are charged a much higher rate (sometimes double) than the low rate you are quoted.

Lastly, DON'T LEASE A TERMINAL or sign a term contract unless you really are in a pinch financially. This is how many processors make their money off of you and you will pay a higher total effective rate in the long run.

If you would like more info, email me at jbordeaux@windriverfinancial.com or give me a call at (920)993-9433.

2006-05-25 13:44:11 by eamer27

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There is no one answer I can give to who provides the cheapest rate. To find the cheapest you just have to shop around, and get a few quotes from different processors. If you can get approved domestically then your rates will automatically be around 5% cheaper.

Feel free to get a free quote from my company, Ballistic Merchant Services. We approve high risk accounts both domestically and offshore. Just follow the link below click on the apply now button.

2006-10-25 03:14:49 by Kenneth T

Verifone VX 610 wireless credit card terminal
No merchant account required
There are 3 versions of this terminal. This version supports the CDMA wireless network

Capital One mass-canceled a number of their credit cards due to a merchant security compromise. They claim this is necessary to protect their account holders from fraud. However, Capital One has yet to release the merchant's name. This merchant is a security liability and should be avoided. Does anyone know who this merchant is? Serious replies only, please don't speculate. Thanks.

Sounds like they have a batch of cards which have a security issue and risk of fraud and so they are protecting themselves against it.

2007-12-01 00:09:25 by trm

is there a way to bill a credit card if im a small repair shop without a merchant account?

No, however you can set up a paypal account. Then your customer can pay you by credit card to your paypal account. They do charge a small fee for receiving funds.

2009-08-09 00:35:38 by DR