[GNC] Handling VISA Debit Accounts

[Karen Stingel]

   I suppose the Account(s) would be most like case #2, they are
   individual Bank Accounts, with own Statements, and VISA enabled card as
   opposed to the old ATM card for withdrawing funds, no cheques - it was
   more or less the VISA bit that threw me

   On 2018-05-08 09:27, Mike or Penny Novack
   '[1]stepbystepfarm at dialup4less.com' via 33Mail wrote:

     On 5/7/2018 10:53 AM, Karen Stingel wrote:

     Thanks everyone for the responses, that things cleared up a lot
     The reason for my original Query is that my bank actually calls
     these transaction accounts
     "VISA Debit" and I wasn't sure where in the Tree they should go, as
     VISA is usually a Credit
     account and therefore a Liability.
     Since I viewed them as regular Bank accounts (not all have their
     cards issued at this time),
     I have created them as BANK accounts, but I wanted to check that was
     the correct place in
     the CoA before starting a new Book.

     We could be of much more help (advice how to handle) if you were
     able to describe for us what you are talking about. There are
     different types (oh dear, that word again) of "debit cards". Here
     are some possibilities.
     1) You have a checking account. In addition to being able to write
     checks against this account you also have been issued a debit card
     against this account. This allows you to use the card for purchases
     that would otherwise require a credit card. The TOTAL limit on your
     card is the "funds available" in the account just like with checks
     but there may be a transaction size limit and a daily limit.
         Method -- no additional account involved. Treat transactions
     involving the card just as it they were checks except you probably
     lack a check number for them.
     2) Like "1" except you have no checks.
         Method -- handle like "1"
     3) Like "1" except not your bank account but a virtual account.
     Every month some agency adds an amount to your card balance. EBT
     cards, for example.
          Method -- I'd create an asset account for this even though it
     isn't really "mine" in the normal sense.
     4) Gift cards, pre-paid debit cards, refund cards, etc.  These might
     be restricted to a particular vendor.
          Method --- I'd create a "type" of asset for these as long as
     this is understood as simple a parent under assets in the CoA. I'd
     probably put pre-paid debit cards under current assets but might
     want to think hard about how to treat ones that were restricted as
     to use.
     Something else? Describe.
     Michael
          Method --

References

   1. mailto:stepbystepfarm at dialup4less.com