 Credit card sales are recorded the same as cash sales, except the retailer incurs a processing fee for being able to accept the credit cards. These fees can range from 2% to 6%, depending on the type of card and the amount of business the retailer does. Let's look at an example. This couple is purchasing $100 of groceries using a Visa credit card. Let's assume the retailer pays a 3% fee in order to be able to accept Visa cards. Finally, for simplicity's sake, let's assume this transaction takes place in a state that doesn't charge sales tax for purchases of groceries, like Minnesota. The journal entry to record the sale by the retailer is a debit to cash for $97. This is the amount the retailer will collect from Visa. Credit card discount expense is also debited for $3. This is the processing fee Visa charges. Finally, sales revenue is credited for $100, which is the amount of the sale. Debit card sales are recorded the same as cash sales. Retailers are not charged processing fees for debit card transactions. A debit card transaction is basically a transfer of funds from a buyer's bank account to a seller's bank account. So let's look at our earlier example. Assume the couple buys our groceries using a Visa debit card instead of a Visa credit card. The journal entry would be recorded exactly the same as a cash sale. Cash would be debited and sales revenue would be credited for $100 each.