pos training modified
TRANSCRIPT
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VISA CARD POS TRAINING
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It is known that our bank enters an agreement with Dashen Bank torender Card (VISA, Master and Dashen local visa card) POS (Point ofSale) service.
In line with this every branch need to deploy the service as per theagreement.
Since FAD is finalized the relevant accounts, you are expected tocarry out with due care.
Regarding this all branches must be aware of the following aspects:
1. Roles: There will be two kinds of roles
A. Supervisor: it has the power to grant access to cashiers andfollow-ups the proper implementation of the service. In one branch
there can be more than one supervisor. It will be the Branchmanagers duty to decide how many supervisors are needed for thebranch.
B. Cashier: they have an access to process the transaction and tocarry out the service. In one branch there can be more than onecashier. It will be the Branch managers duty to decide how many
cashiers are needed for the branch.
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2. Granting Access:It is the branch managers
duty to select and to request who will be entitledto get the access.
A. For supervisor: only the representatives from
Dashen Bank are authorized to grant access.The supervisory delegation form must be filledand signed respective branch managers.
B. For Cashiers: The Branch manager or hisdesignated supervisor is authorized to grantaccess. Supervisor also can have a cashieraccess, to effect transaction and to play dualroles. This is for the purpose of granting theservice by any available staffs.
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3. Report and Claim: The branch manager or
his designated supervisor is responsible to
sent report for the respective
organ/department and to follow up thesettlement of the claim monthly bases.
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4.Commissions: The cashier must clearly explain for thecustomers the type, rate and amount of commission neededto be collected for our bank as well Dashen bank. Regardingcommission it will be collected from two services.
A. Local Card (Dashen Visa Card) Payment: The card is
Dashen Bank visa card. Here the Dashen bank system willcollects 0.5% automatically at the time of the transactionfrom the account. In addition to that during payment weneed to collect 1.5% commission based on the amount outof it 0.5% is our bank portion and 1% is the Dashen bankportion.
B. Foreign (VISA of Master) Card Payment: Here at the timeof payment we have to collect 3% of the amount which ispayable for Dashen bank.
5. To ensure the availability of receipt and other necessarystationary materials
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Accounting Entry
1. Account Type
I. Asset Account
A. Deposit With other Domestic BanksGeneral Ledger
CategoryDashen Bank-Main Area Bank..Subsidiary ledgercategory
General ledger code.00107
Subsidiary Ledger Code.00107330
Purpose: serve to transact payment/receipts made on behalf ofDashen Bank
Debited-when DB paid any obligation to BIB
Credited- when BIB paid to DB
The account maintained and transacted only at HO level (FAD)
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B. Unclear Effect Foreign (UE-Foreign) General Ledger Category
UE-Dashen Bank-Foreign (Card Banking Service)..Subsidiary ledgercategory
General ledger code.00118
Subsidiary Ledger Code.00118070
Purpose: serve to maintain the FCY equivalent ETB claim amount at eachtransaction made on behalf of DB
Debited- when cash paid to DB customer on foreign card holder againstcash LCY and commission account
Credited- when BIB IBD respond the claims tickets (this claims must beprepared and send by branches to IBD once in a week/month withsupporting attachments )
Asper the agreement, 50% of the cash advance payment foreign card DBwill refund in FCY (balance less transfer charges) by crediting ourcorresponding account and the remaining 50% will be refunded in LCY bycrediting our current account maintained with DB Main area Branch.
FAD after receiving the claim will respond IBDs claims by debiting Depositaccount with DB
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C. Unclear Effect Local(UE-Local) General LedgerCategory
UE-Dashen Bank-Local (Card BankingService)..Subsidiary ledger category
General ledger code.00119
Subsidiary Ledger Code.00119140
Purpose: serve to maintain the LCY claim amount at eachtransaction made on behalf of DB
Debited- when cash paid to DB customer on local cardholder against cash LCY and commission account
Credited- when BIB FAD respond the claims tickets (thisclaims must be prepared and send by branches to FAD oncein a week/month with supporting attachments )
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II. Expense Account
A. General Expense General Ledger Category
Dashen Card Banking Service-
Charges..Subsidiary ledger categoryGeneral ledger code.00501
Subsidiary Ledger Code.00501075
Purpose: This account used to record the
charges of the DB up on transferring 50% of theforeign card payments to our correspondent bankaccount
The account maintained and used by IBD only
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B. General Expense General Ledger Category
Dashen Bank POS Rent Expense..Subsidiary ledger category
General ledger code.00501
Subsidiary Ledger Code.00501385
Purpose: serve to record monthly payments of POS terminal rentto DB.
C. General Expense General Ledger Category
Dashen Bank Card Support Fee..Subsidiary ledger category
General ledger code.00501
Subsidiary Ledger Code.00501386
Purpose: This account will be used to record the monthly fixedsupport fee for continuous support. (Software and upgrade,hardware, and related administrative issues)
The expense shall be covered by HO
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III. Income Account
A. Commissions General Ledger Category
Commission on Dashen Card Banking Service-Foreign..Subsidiaryledger category
General ledger code.00401
Subsidiary Ledger Code.00401350 Purpose: This account will be used to record commissions earned on
payments of Foreign card, (if any) at each transaction made on behalf ofDB
B. Commissions General Ledger Category
Commission on Dashen Card-Local..Subsidiary ledger categoryGeneral ledger code.00401
Subsidiary Ledger Code.00401360
Purpose: This account will be used to record commissions earned onpayments of DB local card at each transaction made on behalf of DB
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2. Accounting Entry
I. Foreign Card Payment-Branches which are providedwith POS terminal shall perform different activities upon presentation of VISA and Master Card by
customers for cash advance paymentA. Amount of Withdrawal: There is a limit in amount ofwithdrawal but since there are different limit as per thedifferent foreign banks we cant specify it. System inthis case restricts the amount as per each bank rules.
B. Currency Type: Even though various customersrequests in his own country currency, we have toassist the customer to convert into equivalent to USDor to FCY which our bank maintains equivalent ETBrate in order to convert it into Birr.
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C. Transaction Handling: Suppose a foreign VISA orMASTERCARD cardholders appears at one of BIBs branch (Z) forcash advance payment for Birr 1,000.Here note the following points
Ascertain/ask for the type of card the customer possess (Local orForeign)
Check carefully the security features provided in the POS operationguide
Make sure that the card is not lost or stolen or damaged and checkits security features
Inform the customer that he will get a net cash payment afterdeducting the relevant commissions (3% will be deducted)
If the cardholder wants a net proceed, the total amount to bededucted is plus the commission amount
If the cardholder agrees, If the cardholder agrees, he/she mustpresent legal identity card and proper identification should be done.
Fill the Encashment Voucher which is designed for this purpose
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The amount to be filled on the encashment voucher is
Gross amount----1,000.00
Service ch. (BIB)--- 00.00
Service ch.(3%DB)30.00
Net Procced---- 970.00 Make the card holder sign on the encashment voucher
Dip-in (Insert) or swipe the card on the POS machine andcollect receipt printout for this specific transaction and makesure the amount is clearly recorded on the receipt paper for
equivalent gross amount of Birr 1,000 and make thecustomer sign on the receipt
Make the cardholder sign on the customer copy of thevoucher and attach all documents with the voucher and paythe net amount of Birr 970.00 to the cardholder
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D. Journal Entries to be posted:
Debit. UE-Dashen Bank-Foreign (Card Banking Service)-1,000.00
Credit- Cash Local Currency ---------------------------------------970.00
Payable A/c (3% charge) ----------------------------------30.00
E. Claim Settlement Handling:
On weekly/monthly bases a list of such payments shall begenerated and a claim ticket with supporting attachments
(schedules) should be prepared and sent to BIB IBD Up on sending the claim, a tracer has to be maintained
retaining one set of the claim ticket for reference and makingfollow up of the settlement
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IBD after ascertaining the credit of BIBs Nostroaccount for 50% of the claim in FCY and 50% ofthe claim in LCY for local account maintained withDB, responds the claim through FAD
IBD will sends list of such settlement along withan authorization to debit its branch accountmaintained with FAD and responds the respectivebranches claim through FAD
Up on receipt of the responded claim along withauthorization to debit IBDs account, FAD forwardto the branch (Z)
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HO FAD then forwards the responded claim to
Z branch along with an authorization to debit
HO account and credit it receivable
Up on receipt of the responded claim alongwith authorization to debit HO account
maintained at Z branch, Z branch passes the
following entry and settles its claim tracer Debit- HO account------------------1,000.00
Credit-UE-Dashen Bank-Foreign (Card Banking Service)---1,000
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B. Local Card Payment- Branches which are provided with POSterminal shall perform different activities up on presentation of VISADashen Local card by customers for cash advance payment
A. Amount of Withdrawal: There is a limit in amount of withdrawalequal to 8,000.00 ETB per day. Any amount withdrawn using thePOS or ATM from any terminal will be considered in setting thewithdrawal limit in that particular day.
C. Currency Type: only ETB is allowed in the transaction since it is alocal card.
D. Transaction Handling: Suppose a VISA Dashen local cardholdersappears at one of BIBs branch (Z) for cash advance payment forBirr 1,000.Here note the following points
Ascertain/ask for the type of card the customer possess (Local orForeign)
Check carefully the security features provided in the POS operationguide.
Make sure that the card is not lost or stolen or damaged and check
its security features
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Inform the customer that he will get a net cash payment afterdeducting the relevant commissions (0.5% BIB+1.5%DB will bededucted. Out DB 1.5% charge 0.5% will be deducted by thesystem automatically)
If the cardholder wants a net proceed, the total amount to bededucted is plus the commission amount
If the cardholder agrees, he/she must present legal identity cardand proper identification should be done.
Fill the Encashment Voucher which is designed for this purpose
The amount to be filled on the encashment voucher is
Gross amount-----1,000.00
Service ch. (0.5%BIB)- 5.00
Service ch.(1.5%DB)--15.00
Net Procced---- 980.00
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Make the card holder sign on the encashment
voucher
Dip-in (Insert) or swipe the card on the POS
machine and collect receipt printout for thisspecific transaction and make sure the amount is
clearly recorded on the receipt paper for
equivalent gross amount of Birr 1,000 and make
the customer sign on the receipt Make the cardholder sign on the customer copy of
the voucher and attach all documents with the
voucher and pay the net amount of Birr 985.00 to
the cardholder
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D.Journal Entries to be posted:
Debit- UE-Dashen Bank-Local C Card Banking Service)995.00
Credit- Cash Local Currency ----------------------------------------980.00
Commission on Dashen Card-Local (0.5%) --------------5.00
Payable A/c Local (1% charge) ---------------------------10.00
Claim Settlement Handling:
On weekly/monthly bases a list of such payments shall begenerated and a claim ticket with supporting attachments(schedules) should be prepared and sent to FAD
Up on sending the claim, a tracer has to be maintainedretaining one set of the claim ticket for reference and making
follow up of the settlement
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FAD after ascertaining the credit of BIBs account withDB for claimed amount, responds the claim throughpassing the following entries
Debit- Dashen Bank-Main Area Bank -----995.00
Credit- Z branch account -------------------------------------------995.00
Up on receipt of the responded claim along withauthorization to debit HO account maintained at Zbranch, Z branch passes the following entry and
settles its claim tracer Debit- HO account----------------------995.00
Credit-UE-Dashen Bank-Local (Card BankingService)995.00
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Summary
Account Type
1. Asset
Dashen Bank-Main Area Bank
UE-Dashen Bank-Foreign (Card Banking Service)
UE-Dashen Bank-Local (Card Banking Service)
2. Expense
Dashen Card Banking Service-Charges
Dashen Bank POS Rent Expense
Dashen Bank Card Support Fee
3. Commision Commission on Dashen Card Banking Service-Foreign
Commission on Dashen Card-Local
4. DB commission settlement account