This feature allows the owner to pay for either the full amount, or a percentage of the credit card discount fees charged by credit card companies. Credit card fees charged to the owner can be for the full amount of guest payments (which may include incidental expenses) or may be limited to the portion of the payments that are for rent and tax only.

1. For each credit card payment cost code used, a percentage amount must be entered in the TA%, Rate$, Markup% field.

2. First Resort will use the CF cost code to create a transaction at revenue processing. Generally, this cost code should debit DUE TO OWNERS and credit either a Credit Card Fee Payable, and income account, or a Creidt Card Clearing account. however, for options D and T below, the debit and credit accounts will differ. Check with First Resort support to verify proper CF cost code set up for your system.

3. In System Setup, page 9, the field Charge automatic credit card fees to owner, one of the following entries must be made;
   • N = Do not charge automatic credit card fees to owners.

   • O = Owner pays full fee.

   • S = Full fee shows on Owner's Statement, but the management commission is taken on the NET (rent less the credit card fee). This results in a fee that is split between owner and management company based on the commission rate.

   • D = Fee does not show on Owner's Statement, but is taken off the rent amount and the commission is figured on the Net.

   • T = Fee is calculated, but has no effect on the Owner's Statement. It does create a GL transaction (management pays the entire amount of the fee).

4. In System Setup, page 11, in the filed Limit credit card fees to room and tax Yes or No.

With each months credit card receipts, your bank or credit card company will charge a discount fee. To properly book this discount fee a journal entry should be made. It should credit the bank account where the discount fee is charged to and should debit a credit card clearing account (or perhaps Due To/From Operating). Although these discount fees occur monthly, many of them are for payments made from guests staying in the future. Be aware the CF transactions to remove the discount fee from the credit card clearing account (or to credit income or to create a payable depending on your setup) will not be created until revenue for the stay is processed (typically during the month in which the stay occurs). For seasonal businesses, this means a credit card clearing account will accumulate a debit balance leading into the early portions of a busy season. It will gradually clear itself out as the season progresses.