We are now using square for our card payments. They charge 2.5% so if a customer pays us £10 they would credit our account with £9.75. how do we match the balance?

Let me help you match the payment to the invoice, easttv.

The first thing you need to do is make a bank deposit in QuickBooks to record the payment. Then, add a charge as a negative number.

Let me show you how.

1. Click + New, then select Bank Deposit.
2. From the Account ▼ drop-down, choose the account you want to put the money into.
3. Scroll down to the Add funds to this deposit section.
4. Enter the name of the customer and other payment information.
5. Enter the charge as a second line item.
6. Select who the fee was from (for example, the bank charging you).
7. Select Bank Charges from the Account ▼ drop-down (if you don’t have a bank charges account, select + Add New).
8. Enter the amount fee as a negative number. 
9. Review the deposit total with the bank fee.
10. Click Save and close.

After making the bank deposit, link it to the invoice as a payment. Here's how;

1. Click + New, then Receive payment.
2. Select the Customer from the ▼ drop-down. This displays all open invoices and outstanding credits for your customer.
3. From the Payment date field, enter the day you received the payment.
4. From the Outstanding Transactions section, select the invoice you need to mark as paid.
5. Under Credits, select the deposit.
6. Click Save and Close.

Once done, match the invoice payment to the downloaded deposit on the Banking page.

Don't forget to reconcile your bank accounts every month. Doing this will help ensure your bank statements matches what you have in QuickBooks.

Get back to me if you have additional questions about matching the deposit to the invoice. I'll be around to answer your concerns.

Thank you for taking the time to reply.

This has to be the most counter intuitive workarounds I have ever seen, why can't you just receive an invoice payment from card processing as you would with cash?

The first part seems OK but the second where we link to an invoice doesn't - it only shows open invoices not credits as described in 2. Aldo there isn't a "credits" heading

It also becomes very complicated because the card processing company just makes an aggregate payment which can be multiple individual transactions and you have to work out the 2.5% on each one.

This isn’t the experience we want to leave to you, @easttv.

We hear you, and we're continuously improving to enhance our customer's experience program features while using QuickBooks. 

That said, I'd recommend sending your thoughts about this. You can click the Help and select Send Feedback Online. We always consider your feedback when updating the product. 

The more feedback about a certain feature our engineers receive, the bigger the chance it'll be added. 

I’m also sharing these articles for your guide when reconciling your transactions:

• Learn the reconciliation workflow in QuickBooks.
• Reconcile An Account In QuickBooks Online.
• How Do I View, Print, Or Export A Reconciliation Report?

Keep on posting here if you have more questions. We'll respond as soon as we can.

@easttv 

Another option, utilize a 3rd party paid connector app to reconcile your Square transactions.

You're always welcome, @easttv.

We appreciate you for letting us know how the steps from a related post perfectly work on your end. We appreciate your cooperation.

Please don't hesitate to reach back to us if there's anything else you need. We're always here to help. Take care, and have a great day.