Is it possible to setup automatic addition of a Paypal surcharge if the customer chooses to pay via Paypal on recieving the invoice?

Hello there, edwinh-earthcare.

While QuickBooks Online is unable to automatically add PayPal fees on Invoices, you will need to manually calculate the amount of the transaction fee and include them on the Invoice. To do this, you can follow these steps:

1. Go to the Sales menu and select Product and Services.
2. Click New at the upper-right and select either Non-inventory or Services.
3. Enter the name something like PayPal Fees.
4. In the Income account drop-down, select an expense account you'll use to track these fees.
5. Click Save and close.

When creating an invoice, you can use the PayPal fees item on the Invoice by indicating a negative amount to reduce the total Invoice amount due.

For more details in handling your transactions, you can use this link: Record and make bank deposits in QuickBooks Online.

Let me know if you need anything else. Take care!

This does not solve the issue though.

How can a cc surcharge be automatically charged to the customer if they CHOOSE to pay by paypal through the link on the invoice.

This surcharge can not be put on the invoice initially as they may not choose to pay for it by credit card

Setting up automatic Paypal surcharge when receiving invoice is our top priority, lisap5.

As mentioned by @Catherine_B, while QuickBooks is unable to automatically add PayPal fees on the invoice, you can manually track them as an item in the Product and Services page or create a service type item called surcharge so you can add it on the invoice. You can follow the steps outlined above. 

In the meantime, I suggest sending feedback to let our product team know how this is useful for the business. You can check out our Customer Feedback forums if the same idea has already been raised. If not, you can submit your request by clicking in the Give feedback option. Also, for PayPal, credit cards, and other payments channels, tracking them using clearing accounts. For more information, read this article for more details: Why Use Clearing Accounts In Your Accounting System For PayPal, Credit Cards, and Other Payment Cha...?

Furthermore, QuickBooks downloads the latest transactions and tries to match them with those that you've entered. Learn how to categorise them by following this article: Categorise and Match Online Bank Transactions In QuickBooks Online.

Please touch base with us if you have any questions about surcharge. I'll always be right here to help.