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VISA CARD POS TRAINING

It is known that our bank enters an agreement with Dashen Bank to render Card (VISA, Master and Dashen local visa card) POS (Point of Sale) service.  In line with this every branch need to deploy the service as per the agreement.  Since FAD is finalized the relevant accounts, you are expected to carry 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 and follow-ups the proper implementation of the service. In one branch there can be more than one supervisor. It will be the Branch manager’s duty to decide how many supervisors are needed for the branch. B. Cashier: they have an access to process the transaction and to carry out the service. In one branch there can be more than one cashier. It will be the Branch manager’s duty to decide how many cashiers are needed for the branch.

Supervisor also can have a cashier access. B. For Cashiers: The Branch manager or his designated supervisor is authorized to grant access. to effect transaction and to play dual roles.2. . For supervisor: only the representatives from Dashen Bank are authorized to grant access. The supervisory delegation form must be filled and signed respective branch managers. A. Granting Access: It is the branch manager’s duty to select and to request who will be entitled to get the access. This is for the purpose of granting the service by any available staffs.

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 the settlement of the claim monthly bases. .

Foreign (VISA of Master) Card Payment: Here at the time of payment we have to collect 3% of the amount which is payable for Dashen bank.5% is our bank portion and 1% is the Dashen bank portion. In addition to that during payment we need to collect 1. A.Commissions: The cashier must clearly explain for the customers the type. 5. rate and amount of commission needed to be collected for our bank as well Dashen bank. Here the Dashen bank system will collects 0. B. To ensure the availability of receipt and other necessary stationary materials .4.5% commission based on the amount out of it 0.5% automatically at the time of the transaction from the account. Local Card (Dashen Visa Card) Payment: The card is Dashen Bank visa card. Regarding commission it will be collected from two services.

when DB paid any obligation to BIB Credited.when BIB paid to DB The account maintained and transacted only at HO level (FAD) . Accounting Entry Account Type Asset Account Deposit With other Domestic Banks—General Ledger Category Dashen Bank-Main Area Bank….00107330     Purpose: serve to transact payment/receipts made on behalf of Dashen Bank Debited. 1.00107 Subsidiary Ledger Code……………. A.Subsidiary ledger category General ledger code………………….. I.

when cash paid to DB customer on foreign card holder against cash LCY and commission account  Credited.00118 Subsidiary Ledger Code…………….Subsidiary ledger category General ledger code…………………. Unclear .when BIB IBD respond the claims tickets (this claims must be prepared and send by branches to IBD once in a week/month with supporting attachments )  As per the agreement. 50% of the cash advance payment foreign card DB will refund in FCY (balance less transfer charges) by crediting our corresponding account and the remaining 50% will be refunded in LCY by crediting our current account maintained with DB Main area Branch..00118070  Purpose: serve to maintain the FCY equivalent ETB claim amount at each transaction made on behalf of DB  Debited.Effect Foreign (UE-Foreign) —General Ledger Category UE-Dashen Bank-Foreign (Card Banking Service)….  FAD after receiving the claim will respond IBD’s claims by debiting Deposit account with DB B.

.00119 Subsidiary Ledger Code…………….00119140  Purpose: serve to maintain the LCY claim amount at each transaction made on behalf of DB  Debited.Subsidiary ledger category General ledger code………………….when BIB FAD respond the claims tickets (this claims must be prepared and send by branches to FAD once in a week/month with supporting attachments ) . Unclear Effect Local(UE-Local) —General Ledger Category UE-Dashen Bank-Local (Card Banking Service)….C.when cash paid to DB customer on local card holder against cash LCY and commission account  Credited.

II.. General Expense —General Ledger Category Dashen Card Banking ServiceCharges…. Expense Account A.Subsidiary ledger category General ledger code………………….00501075  Purpose: This account used to record the charges of the DB up on transferring 50% of the foreign card payments to our correspondent bank account  The account maintained and used by IBD only .00501 Subsidiary Ledger Code…………….

C. hardware.00501 Subsidiary Ledger Code……………. General Expense —General Ledger Category Dashen Bank POS Rent Expense….. and related administrative issues)  The expense shall be covered by HO .00501386  Purpose: This account will be used to record the monthly fixed support fee for continuous support. General Expense —General Ledger Category Dashen Bank Card Support Fee….00501 Subsidiary Ledger Code…………….Subsidiary ledger category General ledger code………………….B.00501385  Purpose: serve to record monthly payments of POS terminal rent to DB.. (Software and upgrade.Subsidiary ledger category General ledger code………………….

Subsidiary ledger category General ledger code…………………. Income Account A.00401 Subsidiary Ledger Code…………….00401350  Purpose: This account will be used to record commissions earned on payments of Foreign card.Subsidiary ledger category General ledger code………………….III... Commissions —General Ledger Category Commission on Dashen Card Banking Service-Foreign….00401 Subsidiary Ledger Code…………….00401360  Purpose: This account will be used to record commissions earned on payments of DB local card at each transaction made on behalf of DB . Commissions —General Ledger Category Commission on Dashen Card-Local…. (if any) at each transaction made on behalf of DB B.

System in this case restricts the amount as per each bank rules. Accounting Entry I. . Amount of Withdrawal: There is a limit in amount of withdrawal but since there are different limit as per the different foreign banks we can’t specify it. Foreign Card Payment-Branches which are provided with POS terminal shall perform different activities up on presentation of VISA and Master Card by customers for cash advance payment A. Currency Type: Even though various customers requests in his own country currency. B. we have to assist the customer to convert into equivalent to USD or to FCY which our bank maintains equivalent ETB rate in order to convert it into Birr.2.

he/she must present legal identity card and proper identification should be done.000. the total amount to be deducted is plus the commission amount  If the cardholder agrees.  Fill the “Encashment Voucher” which is designed for this purpose . If the cardholder agrees.C.Here note the following points  Ascertain/ask for the type of card the customer possess (Local or Foreign)  Check carefully the security features provided in the POS operation guide  Make sure that the card is not lost or stolen or damaged and check its security features  Inform the customer that he will get a net cash payment after deducting the relevant commissions (3% will be deducted)  If the cardholder wants a net proceed. Transaction Handling: Suppose a foreign VISA or MASTERCARD cardholders appears at one of BIB’s branch (Z) for cash advance payment for Birr 1.

00 Service ch.00 Net Procced---970. (BIB)--.(3%DB)—30.000.00 to the cardholder .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 970.00.    The amount to be filled on the encashment voucher is Gross amount----1.00 Service ch.00 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 this specific transaction and make sure the amount is clearly recorded on the receipt paper for equivalent gross amount of Birr 1.

D.000.00 Credit.00 E.00 Payable A/c (3% charge) ---------------------------------30.Cash Local Currency --------------------------------------970. Claim Settlement Handling:  On weekly/monthly bases a list of such payments shall be generated and a claim ticket with supporting attachments (schedules) should be prepared and sent to BIB IBD  Up on sending the claim. Journal Entries to be posted: Debit. a tracer has to be maintained retaining one set of the claim ticket for reference and making follow up of the settlement . UE-Dashen Bank-Foreign (Card Banking Service)1.

   IBD after ascertaining the credit of BIB’s Nostro account for 50% of the claim in FCY and 50% of the claim in LCY for local account maintained with DB. FAD forward to the branch (Z) . responds the claim through FAD IBD will sends list of such settlement along with an authorization to debit its branch account maintained with FAD and responds the respective branches claim through FAD Up on receipt of the responded claim along with authorization to debit IBD’s account.

  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 along with authorization to debit HO account maintained at Z branch. Z branch passes the following entry and settles its claim tracer Debit.000.00 Credit-UE-Dashen Bank-Foreign (Card Banking Service)---1.000   .HO account------------------1.

00 ETB per day.B. Currency Type: only ETB is allowed in the transaction since it is a local card. C. Transaction Handling: Suppose a VISA Dashen local cardholders appears at one of BIB’s branch (Z) for cash advance payment for Birr 1.Here note the following points  Ascertain/ask for the type of card the customer possess (Local or Foreign)  Check carefully the security features provided in the POS operation guide.Branches which are provided with POS terminal shall perform different activities up on presentation of VISA Dashen Local card by customers for cash advance payment A.000. Any amount withdrawn using the POS or ATM from any terminal will be considered in setting the withdrawal limit in that particular day.  Make sure that the card is not lost or stolen or damaged and check its security features . Amount of Withdrawal: There is a limit in amount of withdrawal equal to 8. D. Local Card Payment.000.

5.00 Service ch.5%BIB).     Inform the customer that he will get a net cash payment after deducting the relevant commissions (0.00 Net Procced----… 980.(1.5% charge 0.5% BIB+1. (0. Out DB 1.00 Service ch.5%DB)--15. he/she must present legal identity card and proper identification should be done.00 .5%DB will be deducted.000. the total amount to be deducted is plus the commission amount If the cardholder agrees. Fill the “Encashment Voucher” which is designed for this purpose The amount to be filled on the encashment voucher is Gross amount-----1.5% will be deducted by the system automatically) If the cardholder wants a net proceed.

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.   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 this specific transaction and make sure the amount is clearly recorded on the receipt paper for equivalent gross amount of Birr 1.00 to the cardholder .

00  Commission on Dashen Card-Local (0.UE-Dashen Bank-Local C Card Banking Service)— 995.Cash Local Currency ---------------------------------------980.00 Credit.00  Payable A/c Local (1% charge) --------------------------10.D. a tracer has to be maintained retaining one set of the claim ticket for reference and making follow up of the settlement .5%) -------------5.00  Claim Settlement Handling:  On weekly/monthly bases a list of such payments shall be generated and a claim ticket with supporting attachments (schedules) should be prepared and sent to FAD  Up on sending the claim.Journal Entries to be posted: Debit.

      FAD after ascertaining the credit of BIB’s account with DB for claimed amount. Z branch passes the following entry and settles its claim tracer Debit.00 .00 Credit.Dashen Bank-Main Area Bank -----995.00 Up on receipt of the responded claim along with authorization to debit HO account maintained at Z branch.HO account----------------------995.00 Credit-UE-Dashen Bank-Local (Card Banking Service)—995. responds the claim through passing the following entries Debit.Z branch account ------------------------------------------995.

Commision  Commission on Dashen Card Banking Service-Foreign  Commission on Dashen Card-Local 4. 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. DB commission settlement account  .Summary Account Type 1.