Do any of your unit's revenue-generating activities accept payment via credit cards? If so, keep in mind that a processing fee is assessed to the University of Illinois System by these various external credit card companies whenever we accept payment via one of their credit cards.This is a fee that they charge in exchange for processing the credit card transaction on our behalf.
See below for a few tips regarding how to properly account for these credit card processing fees:
- These credit card processing fees should be charged to expense account code 142350, Processing Fees - Payment to Vendor.
- In self-supporting operations, these credit card processing fees should typically post to the same self-supporting C-FOP that the related credit card revenue is recorded to. This will help ensure proper matching of revenue and expense.
- However, in some cases, it would also be allowable to charge these credit card processing fees to a related 2A administrative allowance fund, assuming that the self-supporting fund is being properly assessed for administrative allowance costs which generates revenue within that 2A C-FOP.
- When receiving seat deposits from potential students within a 2N fund, the related credit card processing fees are recorded to the U of I System's tuition fund.
While the bullets above may not cover each and every scenario you may run into, they do provide general guidance on this topic. If you'd like to discuss further, please feel free to reach out to UAFR via the contact information below.
Contact
For further details, contact the applicable subject matter experts within the Credit Card Sales section of UAFR's Who to Ask list.
