Customer paying by credit card

Hello there, @ametz1201.

When your customer makes a payment and the fees are deducted, the process for recording these transactions in QuickBooks Online (QBO) involves receiving the payment as usual and posting it to the undeposited funds account. After this, you should create a bank deposit to transfer the funds from the undeposited funds account to the appropriate bank account.

I'll guide you through the process. Here's how:

1. First, make an Invoice to your customer.
2. Once done, select Receive Payment.
3. From there, choose Undeposited Funds for the Deposit To option.
4. Check the box of the invoice you made.
5. Click Save and Close.

Once done, you must record the fee in the bank deposit.

Here's how:

1. Click + New.
2. In the Other column, select Bank Deposit.
3. Choose your accurate Bank Account in the Account field.
4. Tick the box in the Received From column.
5. In the Add funds to this deposit, enter the necessary information.

• Please note that it should be an expense account you use in the Account column.
• Enter the fee in the Amount column, it should be a negative amount to deduct.

     6. Hit Save and Close.

Moreover, you can manually add service fees to invoices in QuickBooks Online .  

Additionally, you can check these articles for further guidance regarding your invoices:

• Edit the payment and processing fees account for QuickBooks Payments.
• Handle a customer credit or overpayment in QuickBooks Online.

Furthermore, to enhance your accounting process, ensure accurate financial records, and get expert assistance, I recommend considering QuickBooks Live Bookkeeping. This service can give you significant time, enabling you to focus more on growing your business.

If you still have questions regarding your invoices, feel free to post again. I'm here to help you. Stay safe!

So, when I make the invoice to bill the customer, the invoice is only for the services we did?  I do not put the credit card fee on a separate line on the invoice?

You would put the processing fee or credit card fee on a separate line on the invoice. Either that, or a note saying that there is a fee for paying with a credit card.  (make sure to specify what the fee amount is) 

Thank you for always getting back to us, @ametz1201 

Yes, if you've followed the steps given above, you don't need to add another line item for the service fee since it will be recorded as an expense when recording a bank deposit. However, if you want to add the service fee to your invoice, then you'll need to create an item for it and add to it your line item.

Here's how: 

1. Go to the Gear icon.
2. Under the Lists column, choose Products and Services.
3. Click New, then select Service.
4. Enter the name of your service item. (Example: Service Fee).
5. Fill in the Sales Price or Rate.
6. Set the Income Account as an expense.
7. Hit Save and Close.

Once done, you can now add the credit card fee as an extra line item on your invoice when charging your customer with a processing fee.

For future reference, I'm linking an article that provides more details on customizing the sales forms you send to your customers: Customize invoices, estimates, and sales receipts in QuickBooks Online. 

If you have any further questions about your invoices and processing fees, feel free to respond to this thread. I'll be glad to help you.