Is it possible to recognize the full sale of a gift card as revenue?
Background: This question is for a mobile wallet company that sells Gift cards through its mobile wallet. There is a 3rd party company that deals with all the merchants. Money comes in to our bank for the full amount of the gift card and gets swept by another 3rd party from our bank Total sale less commission, leaving us with the balance of the commission. Currently we just recognize the commission as sales, but curious if it is against accounting policy to recognize the full sale of the gift card as revenue.
Background: This question is for a mobile wallet company that sells Gift cards through its mobile wallet. There is a 3rd party company that deals with all the merchants. Money comes in to our bank for the full amount of the gift card and gets swept by another 3rd party from our bank Total sale less commission, leaving us with the balance of the commission. Currently we just recognize the commission as sales, but curious if it is against accounting policy to recognize the full sale of the gift card as revenue.