ATM Interchange Fee Income — Other Bank's Customers
Earning interchange fee when another bank's cardholder uses the bank's ATM.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Interbank Interchange Receivable | Asset (+) | 0.75 | - |
| ATM Interchange Fee Income | Revenue (+) | - | 0.75 |
💡 Accountant's Note
When another bank's customer uses the ATM, the card issuer pays the ATM acquirer (this bank) an interchange fee. This is typically a flat fee per transaction settled through the card network (Visa/Mastercard/JONET). The entries here represent a single transaction; in practice this is batch-processed.
Practitioner & Systems Framework
💻 ERP Architecture
ATM interchange is typically managed by the card management system (CMS) not the core banking system. Settlement flows through the card scheme (JONET for domestic, Visa/MC for international) and posts to the bank's GL via an automated interface at the end of each settlement cycle (daily or every 2-3 days).
⚠️ Audit Flags
Auditors verify that interchange rates match the card scheme's published schedule and bilateral agreements. Unreconciled items between the CMS and the GL that are older than 5 business days are flagged. ATM availability rates are a KPI monitored by management.
📄 Required Documentation
Card scheme settlement statement, interchange rate schedule, CMS-to-GL reconciliation report, and ATM transaction log.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.