Financial Glossary
Electronic Payment (ePayment)
An electronic payment, or ePayment, is any transfer of funds made through digital channels rather than cash or paper check. Common forms include credit and debit card transactions, ACH bank transfers, wire transfers, and settlements from card networks and processors such as American Express. For a business, ePayments typically arrive net of processing fees and on a settlement schedule that may differ from the transaction date.
Problem & Application
When a campground or hospitality operator accepts cards, the deposit that hits the bank is often the gross sale minus processor fees, and it may land days after the guest checked out. Recording the gross revenue, the fee expense, and the timing difference correctly is what keeps the books reconciled and the income statement honest. Sloppy handling of ePayment settlements is a frequent cause of bank reconciliation headaches.
In Short
Treating electronic payments as gross revenue less fees, with attention to settlement timing, keeps revenue and cash records accurate.