How do I process a "cash reward payment" from a credit card provider?

Question

Hi All, when my business credit card accrues enough points for a reward, I have elected to receive a small cash payment instead. What is the correct way to process this credit when it appears on the statement or bank feed? Thank you.

Genreve_S · Answer

Hi @Ausrec,

That cash reward from your credit card is best recorded to its own ledger account (for example, “Other income – card rewards”). The exact treatment can depend on how your books are set up, so it’s a good idea to check with your accountant or bookkeeper to make sure it’s right for GST and reporting.

Regards,
Genreve