Agreement Accounts Receivable With Credit Card Processing In Contra Costa
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So while credit card payments are not traditional accounts payable since they don't come fromMoreSo while credit card payments are not traditional accounts payable since they don't come from supplier invoices. They are still treated as a liability. And managed within the accounts payable.
Billing is part of accounts receivable and is defined as the process of generating and issuing invoices to customers. If a business provides goods or services without requiring full payment up front, this unpaid balance is categorized as accounts receivable.
In your income statement (or profit and loss statement), credit card processing fees are typically recorded as an operating expense. They might be included in a general category like "Administrative Expenses," "Selling Expenses," or "General and Administrative (G&A) Expenses."
A cardholder agreement is a legal document outlining the terms under which a credit card is offered to a customer. Among other provisions, the cardholder agreement states the annual percentage rate (APR) of the card, as well as how the card's minimum payments are calculated.
PCI compliance standards require merchants and other businesses to handle credit card information in a secure manner that helps reduce the likelihood that cardholders would have sensitive financial account information stolen.
