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ATM/ POS Configurations

This page deals with accounting for ATM/POS transactions, from income on sales of cards to costs of transactions, the charges to pay to the ATM/POS supplier as well as Excise duty payments.

Before an MFI can use the credit and debit card feature, the MFI needs to obtain an ATM Issuer Identification number and an MFI Identification number provided by the ATM Service provider. These numbers will have to be entered in the appropriate fields under System/ Configuration/General. 

How do we configure ATM/POS transactions?

To configure ATM/POS transactions, go to System/Configuration/Savings/ ATM\POS configuration, the following screen appears:

• Savings Product: Select from the drop down the savings products you want to configure to allow ATM and POS transactions.The products should have been should have been defined at System Configuration/Savings/ATM POS Configurations

• Product allows debit/credit cards: Tick this check-box to allow ATM cards to be issued for the selected product, otherwise all the fields text boxes will be read only.
• Length of Card number: Select the length of ATM card numbers here. It is either 16 or 19.
• Years of validity: Enter here the number of years for which this card should be valid for example "5".
• Issuing charges: Enter here the amount that will be charged when an ATM card is issued to the client under Savings/Credit and debit cards/Issue Card and this amount will be posted to the GL account Debit/Credit card issue charge defined e.g. "440111" .
• Cancellation charges: Enter here the amount that will be charged when an ATM card is canceled under Savings/Credit and debit cards/Cancel card and this amount will be posted to the GL account Debit/Credit card cancellation charge defined e.g. "440113".
• Transaction fees: These are fees for designated ATM transactions. The user will be required to select the charge type (percentage/ flat amount) for the different fees and a corresponding General Ledger account to which the fees will be booked situated on the right.
  • Cash withdrawal charge: This is a charge levied on the client for cash withdrawals using the ATM machine. Select here the charge type for cash withdrawals e.g. "Percentage", enter the Percentage to be charged and then select the corresponding GL account i.e. Cash withdrawal charge account.
  • Balance inquiry: This is a charge levied on the client for inquiring his/her account balance using an ATM. Select here the charge type for balance inquiry i.e. Percentage or Flat amount, enter the percentage or amount, and then select the balance inquiry charge GL account.
  • Payment Charge: This is a charge levied on the client for payments made using an ATM machine e.g payments of water bills. Select here the charge type and enter the amount or percentage and select the payment charge GL account.
  • Cardholder transfer charge: This is a charge levied on the cardholder for transferring money from one account to another using an ATM. Select here the charge type, enter the amount or percentage and then select the card transfer charge account.
  • Purchase of goods/charge: These are charges levied on the cardholder for purchase of goods using an ATM machine e.g. "Airtime". Select here the charge type, enter the amount or percentage and then select the purchase of goods and services charge GL account.

POS Transaction fees:

These are fees for designated POS transactions: The user will be required to select the charge type (percentage/ flat) for the different fees / charges and a corresponding General Ledger account to which the fees/ charges will be booked just as above.

• Excise duty (%): This is a tax on goods and services remitted to the tax body e.g. "URA in Uganda". Enter the percentage of Excise duty to be charged for ATM/POS transactions and specify the Excise duty GL account on which this tax will be posted. Untick this check box if your institution does not collect this tax.
• Cash withdrawal limit: Enter here the daily cash withdrawal limit. ATM users will not be able to withdraw any amount more than the one specified here per day.
• Purchase limit: Enter here the daily purchase limit. ATM users will not be able to make purchases more than the amount specified here per day.
• ATM suspense account: This GL account serves as cash account for transactions effected at the ATM / POS machines.
• ATM bridge transaction account: This account is where ATM service provider charges will be posted.

Related Topics

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