Inserting transactions with debit card, cheque and prepaid card

[John Ralls]

On May 13, 2014, at 5:06 AM, Mike or Penny Novack <stepbystepfarm at mtdata.com> wrote:

> 
>> 
>> A debit card, a cheque book and a withdrawal in person are all
>> different ways I can interact with a single account. The debit card and
>> the cheque book are not assets in a financial sense, so this answer
>> seems most logical.
>> 
>> Liz
>> 
> I might perhaps be misunderstanding the behavior of a "debit card" and perhaps we might be talking about more than one sort of thing going by that name. With me thinking about one and you the other.
> 
> a) A card behaving like described above (simply allowing electronic transactions instead of paper checks) would not be a different asset account. You'd enter the transactions just like you did with checks.
> 
> b) Going to the bank and cashing a check to put money in your wallet IS a transfer between two asset accounts.
> 
> c) If the card behaved similarly to cash in your wallet, was for a designated total amount, but allowed for electronic payments rather than handing over physical money and coins then it is behaving as an asset account as in "b". When you "refill" the card like a transfer between checking and card.

"a)" is a "debit" card. "c)" is a "stored value" or "gift" card.

Regards,
John Ralls