Question

How do i charge a credit card processing fee to my customer?

9 replies
474 views

for example, if i charge 300 for a service then add 3% to that charge for cc payments, is Intuit taking their fee off the total or just the 300?

QuickBooks Online

LieraMarie_A

Level 8

Hi there, @greatoaks5.

In QuickBooks Online, you can charge a credit card processing fee to your customer by adding it as a separate line item on the invoice or sales receipt. This way, the fee is clearly displayed to the customer. QuickBooks Payments deduct the processing fee from the total transaction amount.

To charge a credit card processing fee to your customer in QuickBooks Online and ensure clarity, you can follow these steps:

Create an invoice or sales receipt for the service you are providing.
Enter the service amount as $300.
Add a new line item to the invoice or sales receipt for the credit card processing fee. For example, if the fee is 3% of $300, the fee amount would be $9 (300 x 0.03).
Specify the description of the fee, such as "Credit Card Processing Fee."
Save and send the invoice or sales receipt to your customer.

By doing this, both the service amount and the fee will be included in the total amount that the customer is charged. To prevent any misunderstandings or unexpected charges, I recommend communicating this fee transparently in advance. By doing so, you can provide your customers with a clear understanding of the total amount they will be charged, including the fee.

Furthermore, we recommend referring to these articles to ensure accurate recording of your payments and processing fees to the appropriate accounts:

Feel free to ask if you have any further questions or need additional assistance about receiving customer payments. We'd be happy to assist.

T

thesteven14

Would this then take 3% of the new total, $309?

A

ArielI

QuickBooks Team

Yes, @thesteven14. When you include a credit card processing fee in the amount you charge to your customers (in this case, adding 3% to the $300 service fee, making it $309 total), Intuit will calculate its processing fee based on the total amount that goes through the system, which is $309.

Furthermore, you have the option to allow your customers to directly pay the convenience fee instead of covering it yourself. Please note, that this is only applicable to ACH bank payments. For more detailed information, you can refer to this article: Let Your Customers Pay Invoices by ACH Bank Payment with a Convenience Fee.

If you have any additional questions about payment fees or how Intuit calculates the fee for each transaction, simply click the Reply button. We are here to answer your questions and guide you every step of the way.