Debit Account Setup: Difference between revisions

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:'''''NOTE:''' To avoid fraud and misuse, set up clear guidelines and stick to them. Card holders will need to know that exceptions will be rare. Be kind but firm. If they are asked by the board to sign the “[[Media:4520 - Debit or Credit Card User Agreement.pdf|Debit/Credit Card User Agreement]]” upon receiving their card, they will have less opportunity to claim ignorance or privilege.''
:'''''NOTE:''' To avoid fraud and misuse, set up clear guidelines and stick to them. Card holders will need to know that exceptions will be rare. Be kind but firm. If they are asked by the board to sign the “[[Media:4520 - Debit or Credit Card User Agreement.pdf|Debit/Credit Card User Agreement]]” upon receiving their card, they will have less opportunity to claim ignorance or privilege.''
==Reconciling the Debit Account==
[[Reconciling the Debit Account|Reconciling the debit card account]] should be done monthly without fail, so that any fraudulent charges are quickly discovered, reported and reversed. If reported after the grace period that your bank gives (which varies, but can be as little as 30 days), full recovery of the stolen funds may not be possible, which means your church forfeits that money.
To reconcile, you will need:
* The debit account bank statement for the month that you are closing.
* End of month “Debit Card Activity Reports” from all debit card holders, including one from yourself, if you hold a card.
==Entering Debit Purchases==
Enter all the debit purchases for the month by going to “Write Checks” in Jewel. '''Make sure to change the bank account to your debit card account''' (whatever it is called in your database) on each payment as you enter it. You do not want these payments showing up on your checking account reconcile page.
:'''Check #:''' Ignore it. The check # will disappear once you click the “Electronic Payment” box.
:'''Date:''' Enter the exact posting date from the bank debit statement.
:'''Amount:''' The total of the payment on the bank statement.
:'''Pay to the Order Of:''' The names on the statement can sometimes be abbreviated. Figure them out and enter the correct name.
:'''Memo:''' Create a memo for each entry, using the debit receipts that have been turned in, to describe both the purchase and the purpose. Be specific. Use date ranges for utility bills.
:'''Account:''' Post each purchase to the correct local fund.
:'''Electronic Payment:''' Finish by making sure the “Electronic Payment” box is clicked.
If you have another debit payment to enter, use the “New Check” button on the right side of the screen to continue.
:'''''NOTE:''' If you find you have entered a check under the wrong bank account, go find that check and edit it right then. Use the red “Previous” arrow on the right side of the Write Checks screen, or find and click on the payment in your Check Report. Don't create a second payment. Fix the one you already created before you close the month.''
==Editing a Payment's Bank Account==
Find the check that is posted to the wrong bank account. You can click the red "Previous" arrow on the right side of the Write Checks screen, or find and click on the payment in your Check Report. Click on “Edit Check”. Using the drop down box in the upper left corner, choose the correct bank account. Click on the “OK √” in the top right corner to save and close.
==When You Have Many Debit Transactions==
Pro tip to speed up debit card entries: Before starting the debit card bank rec process, if you have a number of debit transactions to enter, do the following.
* Go to Maintenance / Properties / Accounts tab
* Using the drop-down menu, temporarily change the “Default Checking Account” from checking to the debit card bank account, so that the electronic payments that you are about to enter will all post to the debit account, without you having to reset the bank account for each check individually.
'''''IMPORTANT: When finished entering all the debit charges, return to Maintenance / Properties / Accounts and reset the “Default Checking Account” back to checking. Otherwise your next checks will post to the debit account and you will need help to fix them if you don't catch the error before closing the month.'''''

Revision as of 22:23, 25 December 2025

NOTE: If your church board has decided to obtain and use a debit card, hopefully you will follow our very strong recommendation to open a separate checking account, not connected to the main checking by automatic transfers. This debit account is to be funded by manual online transfers from the main checking account as needed.

Setting Up a New Debit Card Account in Jewel

Go to Maintenance / Edit Accounts, then click on “Add New Account” and set it up like this:

Type: Bank Account
ID: Pick a number, close to your other bank accounts, that is not already in use.
Name: Debit – then the name of your bank
Bank Name: Debit. The rest of the “Bank Information” can be left blank, since you won’t be writing or printing checks on this account.
Statement Frequency: The default is “Monthly.” Leave it that way.

Click the green “OK √” in the top right corner to save and leave.

Things to Consider As You Set Up the Debit Account

  • Some banks will require a minimum balance in order to avoid fees. Find out your bank’s practices.
  • Ask for end of month statements. Ask for printed and mailed statements, even if there is a small charge.
  • Your debit account should not be set up to auto draft from checking if the balance gets too low. Having a separate debit account is so that fraudulent use of your debit card cannot drain your main checking Account. If the two accounts are connected with auto draft, it defeats the purpose of the separate account.
  • You do not need to purchase checks – you will not be writing checks from this account. Ideally, you won’t even need deposit slips, since transferring online is the best.
  • If possible, set up online banking for yourself as treasurer, so you can quickly and safely transfer funds online from checking to debit when needed.
NOTE: The board should discuss and vote who will use the card(s) and under what circumstances. Review these requirements annually with the board, or with new card holders as they receive their card.
  • The debit card should never be used for personal purchases.
  • The debit card should never be used to withdraw cash.
  • Have the cardholders sign a “Debit/Credit Card User Agreement” when they receive their card.
  • Require that a “Debit Card Activity Report” be turned in monthly by cardholders.
  • Original receipts for all purchases should be stapled in date order to the “Activity Report,” and turned in to the treasurer no later than the 7th of the following month, without the card holder having to be reminded or asked for missing receipts. The card-holder’s convenience should not exponentially increase the treasurer’s workload.
  • Anyone who does not follow the guidelines on the “Debit Card Activity Report” should forfeit the use of the church debit card.
NOTE: To avoid fraud and misuse, set up clear guidelines and stick to them. Card holders will need to know that exceptions will be rare. Be kind but firm. If they are asked by the board to sign the “Debit/Credit Card User Agreement” upon receiving their card, they will have less opportunity to claim ignorance or privilege.
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