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credit card vs bank account?
can someone explain the difference between setting up a 'Bank account' and a 'credit card account'? I have visa or mastercard on all my bank accounts. so whats the difference, When I pay with my card, I guess the merchant just chooses whatever 'function' of my plastic card that he supports, and then the money gets drawn from my bank account in the end anyway, if I pay using the 'visa' funcion of the card it might take 2 days longer for the amount to get debited, but for me thats seems to be the only difference.. so what am i not understanding here? Why is a bank account and credit card account something separate within FAC?
I’m unsure
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Inappropriate?Mikkel,
They're not really different things - it's just that we store different account numbers and present the statement slightly differently (OK, it's just the icon!).
In fact, we'll be adding more account types in future - to cover 'Cash' and 'Loans' to start with.
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Inappropriate?The difference and functionality is more understandable if you wish to track the money movement from account to account - e.g. one has a bank account (with or without plastic), but one's other visa credit card / debit card etc. is with Virgin or someone other.
In that case you would track any business purchases made with your business 'credit card' in your 'credit card' account, and track transfers (monthly payments, interest etc.) from your business account to your credit card account as needed.
In example, currently I do not differentiate between a direct debit / standing order payment or card payment if it comes out of the business account - effectively the only real difference is as you have pointed out, clearing times - but I have separate accounts set up in FreeAgent for various Visa and Currency Card accounts that are exclusively (well, 90+%) used for business.
That takes care of most expenditure, but IF I use my personal visa etc. (which are NOT set up in FreeAgent) then that particular expenditure goes through "out of pocket" expenses...
Hope that helps.
Philip
I’m working on my routine: "pick a card, pick a card, any card..." take the first number you thought of... now double it..."
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