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Information on accounting for prepaid cards

Information on accounting for prepaid cards

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Hi. We started issuing prepaid cards to our customers (they upload the funds and use the cards for purchases and ATM withdrawals). Where can I find information on accounting for such services? For example, we are offering free ATM withdrawals, but we are charged by the mastercard - I suppose those charges are our fixed cost rather than cost of sale - I need to find a reference to that. Thank you.

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By paul.benny
09th Sep 2019 10:30

Think about fundamental accounting concepts:
- matching concept. What income is associated with the cash withdrawal fee?
- prudence - what is the timing of the fees compared with your income?

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