Entries for Merchant deposits and fees for QB MAC

Hi Novice.

I appreciate you for reaching out to us here on the Community page. I'm here to share with you some information about processing Merchant Payments with QuickBooks Desktop for Mac.

Yes, you need to set up your customers, create your invoices, and record the payments. The advantage of having the QuickBooks Payments account is you can send invoices to your customers with an online payment link. It means that your customers can pay their invoices online via a credit card or bank transfer.

Before creating your invoices, you need to sign up for QuickBooks Payments, then connect your Payments account.

Here's how:

1. Open the correct company file, then go to the Customer tab.
2. Click on Link merchant services account.
3. Enter your merchant service login and then select Sign In.
4. Select Authorize. You’ll then see ✓ Merchant Service Enabled.

After that, you're now ready to create your customers, and record invoices with the Pay Online link.

1. Go to the Customers tab, click on Create Invoices.
2. From the Invoice page, select either Accept Credit Cards or Accept Bank Transfer. You can select both options to let your customers choose how to pay.
3. Select Save, then select Share to email the invoice to your customer.

When recording the payment, you need to deposit the amounts if the payments were deposited to the Undeposited Funds. If not, yes, you can deposit the payment directly to your bank from the Receive Payments window.

For more tips about processing credit card payments in QuickBooks Desktop, I recommend checking out these articles:

• Process a credit card payment in QuickBooks Desktop for Mac
• Turn on online payments in QuickBooks Desktop for Mac
• Take and process payments with QuickBooks Payments

You may also check out the topics from our help articles for more resources while working with QuickBooks in the future.

If you have any other questions about invoices and payments, please feel free to leave a comment below. I'm always here to help. Have a good one!

Hi Angelyn,  thanks for your response. Is there a way to record Merchant Payments & fees without Quickbooks Payments?  

Maybe further explaination is needed.  My company put on an event in which payment was needed to participate. Payments were done via a 3rd party merchant services company and were deposited/debited directly to our bank account.  How can I appropriately show the deposits and fees done by the Merchant company? 

Under normal circumstances, I know how to create customers/invoice/receive payments, but since we do not know who may or may not participate, you can't create invoices for people to receive payment.  I hope that makes sense.

Hi there, Novice4U.

I appreciate you for coming back for providing additional clarification about how QuickBooks Payments work.

Yes, there's a way to record the merchant entry & fees without Quickbooks Payments. Since the payments were done via a 3rd party merchant services company, you can record these as deposits in QuickBooks Desktop. Before that, I suggest adding the 3rd party merchant as Other name

Here's how:

1. Click the Lists menu at the top.
2. Choose Other Name List.
3. Click the + menu at the bottom of the list.
4. Enter the name of the Other name.
5. Add any notes you want to add for this name.
6. Fill in the other necessary fields.
7. Hit OK.

Once done, you can now start creating a deposit to record the payments and fees. You can click this article to see the detailed steps on how to perform the process: Record and make bank deposits in QuickBooks Desktop.

Please refer to this article to see different information about automatically recording and matching merchant service deposits in QuickBooks Desktop: Recording QuickBooks Payments bank deposits FAQs.

If you have any other questions about invoices and payments, please feel free to leave a comment below. I'm always here to help. Have a good one!

Hi ChristieAnn,  Thanks for your response. 

Just so I'm clear, When entering these Deposits from the 3rd party Merchant, I will create the 3rd Party Merchant as "Other Name" for "Received From". And, I should also create another Income Account for "From Account". I understand that.

As per your instructions, it says that I should put these payments in Undeposited Funds Account to combine payments.  My questions is, do you have to do it this way or can I just record deposits directly into the bank account and then use "write check" to show debit of Merchant fees?  The deposits we receive are not alway individualized and therefore, we sometimes receive payments in batches. Also, using the Undeposited Funds method, I can not always show the fees that are deducted at a later time, meaning when I record the deposit, the fees are not done at the same time.  Hope that makes sense. thanks for your help.

Thanks for adding more details about your concern, Novice4U.

Based on the scenario, you can record the deposits directly into the bank account. Then, write a check to show the merchant fees.

Here’s how:

1. Tap the Banking menu to select Make Deposits.
2. Click the Deposit To drop-down and choose the right bank account.
3. Then, enter the appropriate data.
4. In the Receive From column, type the 3rd merchant party in the field box and input the posting account in the From Account box.
5. Fill in the remaining field boxes.
6. Click Save & Close.

When you’re ready, you can write a check to record the merchant fees. If you haven’t created the account for the fee, follow the instructions in this article to add one: Add, edit, or delete accounts in QuickBooks Desktop for Mac..

However, if your third party merchant services deposit a lump sum payment, I suggest using the Undeposited Funds to record the transaction. For more insights into how the account works, check out this article: Deposit payments into the Undeposited Funds account.

You can bookmark this article for future additional resources. It provides an overview of how to help you organize your cash flow, and track sales, receivables, and profitability more accurately: Get started with customer transaction workflows in QuickBooks Desktop.

Stay in touch if you have any other questions or concerns. I’ll be around to answer them for you. Have a great day ahead.

Thanks Rasa-LilaM. My only other question is if I can just do a straight deposit, can you explain why I would want to do a deposit this way? "However, if your third party merchant services deposit a lump sum payment, I suggest using the Undeposited Funds to record the transaction."

Hi @Novice4U,

Thank you for your prompt reply. Allow me to chime in and share insight on this question about deposits. 

You utilize the Undeposited Funds so you can match the lump sum payments. When you receive your deposit slip, you can combine these deposits into a single transaction from your Undeposited Funds account. This matches what you have in your bank records. 

More details on this process are in this article: Deposit payments into the Undeposited Funds account in QuickBooks Desktop. It's a step by step guide on how you can accomplish this in QuickBooks Desktop (QBDT), along with some screenshots for your reference. 

Post a reply below if you have other concerns with your QBDT company. I'll get back to you as soon as I can. 

Hi - Based on ChristieAnn's response, if I would like to record deposits & fees from a 3rd Party Merchant without QB Payments, I'd like to confirm that the following is the correct process.

1. Create 3rd party merchant as Other Name in Lists.

2. In Deposits: Received from > should be the "3rd Party merchant - Other Name". 

                       From Account > should be an "Income" Account. 

That would record the deposits.

To deduct 3rd party merchant fees, I would Write Check payable to "3rd Party Merchant"

below in Account > it should be "3rd party merchant - Expense"

Does this sound correct?

Sorry, I know this sounds basic, but I know its actually more difficult to correct something, rather than asking one last time. Thanks!

I appreciate you for getting back to us, Novice4U.

Yes. You're on the same page with ChristieAnn. After you create a 3rd party merchant, you'll have to record as deposit the amount from them. Then, to deduct a 3rd party merchant fees, you can write a check.

Feel free to post again if there's anything that I can help. Keep safe!