cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Created with Sketch. Have questions about what to do to prepare for tax time? Our year-end hub will walk you through the process.
Created with Sketch. Find out how to upgrade your subscription, manage your password, view account fees, request a refund, and much more on our account management page.
islandwidemillin
Level 1

How do i add a fee when people use a credit card to make up for the loss in fees?

 
3 Comments 3
LauraAB
QuickBooks Team

How do i add a fee when people use a credit card to make up for the loss in fees?

Hello islandwidemillin,

 

Welcome to the QuickBooks Community! It sounds like you may be using QuickBooks Online Payments or another payment processing service to give your customers the opportunity to pay you via credit card for the services and items you're selling them. That's great! I'm glad you've noted that the service you're using includes fees. This means no surprises later when you're going through your books and banking. I can help you with this question of adding feeds to a customer transaction.

 

Although there isn't a way to automatically add a fee to an invoice or sales receipt, there is a way to manually add one by creating a service item and then adding that as a line to your transaction. This article outlines how you can manually add a service fee to an invoice, but the item that it instructs you to create can also be added to other forms as needed as well: Add service fees manually to invoices

 

Give that a shot and let me know if you're still having trouble with it. I've also pulled together a few pages for you that are good to read through if you are using QuickBooks Online Payments.

Have a great rest of your day!

BTec Admin
Level 1

How do i add a fee when people use a credit card to make up for the loss in fees?

Laura, I am considering purchasing the quickbooks online payment solution and am researching how to pass along the processing fee to our customers before purchasing the solution. I understand that quickbooks currently does not automatically provide an option to simply calculate and 'add' the processing fee amount to the customer's final invoice based on payment method selected - I truly hope this is on the roadmap for release and if it is I would love to see/have access to it's expected release timeline. 

Additionally I do not agree that your proposed work-around actually will work. Since the processing fees are based on % of total invoice amount then by adding a service item/an additional line item to the invoice will impact the invoice total and thus require the processing fee amount to change as well. It will be a chicken and egg scenario. e.g. Services total $100 after tax and the customer is invoiced for $100. Using the online payment for credit card the processing fee is 2.9%  of $100 = $2.90. Thus I would want the customer to pay $102.90 total. However with your proposed solution I would have to first know the customer will choose to pay by credit card because if they select the etransfer option the processing fee is just 1%, then my invoice would read: Services $100, Fees $2.90 for a total of $102.90. BUT when the customer finally goes to pay the actual 2.9% is calculated on the new invoice total of $102.90 which is actually $2.984 about 8 almost 9 cents will not be accounted for and I as the business owner will need to pay it. This example makes it seem immaterial but when my projects are tens of thousands of dollars it makes a big difference. 

 

Please confirm if my understanding of your proposed solution is correct?

LauraAB
QuickBooks Team

How do i add a fee when people use a credit card to make up for the loss in fees?

Hello BTec Admin,

 

Thanks for joining the thread. Your understanding of what my proposed solution is correct, wherein you'd need to know ahead of time what sort of payment method they're using so that you can have the invoice reflect it accordingly. So, for transactions through QuickBooks Online Payments, this wouldn't work unless you're processing the payment on your customer's behalf in the Receive payment window by selecting the payment method and then checking the box to process payments. Thanks for that callout since my original response didn't touch on that.

 

Given what you'd like to do with charging the customer the service fee to the business for using QuickBooks Payments, you may want to consider an alternative solution that'll meet your needs. You can check out the Apps tab in QuickBooks Online and use search terms like "payments" to see what's available to sync with QuickBooks.

 

Since you'd like to see this as a feature, I recommend submitting your feedback using these steps: How do I submit feedback? This is a great way to let our product development team know the changes that would benefit you as a business owner. I can't say whether implementing services fees is coming to the product or not, but I can say that the more voices requesting a feature, the more the team will see the need for it. You can keep track of product updates here: QuickBooks Online Feature and Product Updates

 

Wishing you the best with your decision!

Need to get in touch?

Contact us