How do you record a credit card transaction if a customer pays by card on QBO? This would be a manual payment. Do you need to record a bank deposit too?

Hello there, @cbanotai. Let me show you ways how you can record a credit card payment transaction in QuickBooks Online (QBO).

In QBO, you can record sales transactions in two ways (sales receipt and invoice). When your customer manually paid you through a credit card at the time of the sale, you can create a sales receipt. Then, make sure you indicate the Payment method they used and choose to either put or deposit the money directly into an account or select Undeposited Funds if you need to group the payment with others and then make a bank deposit. 

On the other hand, when your customer used their credit card to make a payment on your invoice, you need to record it through the Receive payment option. The same goes with the process above, you'll have to include the Payment method they used. Then, decide whether to deposit the funds directly into an account, or select Undeposited Funds if you'll group the payment and then make a bank deposit. Here's how:

1. Go to the + New button.
2. Select Receive payment.
3. From the Customer dropdown, select the name of the customer.
4. From the Payment method dropdown, select the credit card used.
5. From the Deposit to dropdown, select the account you put the payment into.
6. In the Outstanding Transactions section, select the checkbox for the invoice you're recording the payment for.
7. Enter the Reference no. and Memo if needed. This is optional.
8. When you're done, select Save and close. 

The Undeposited Funds account keeps a record of payments in QuickBooks until you deposit payments at your real-life bank. In case you opt to deposit the customer's credit card payment into it, please see this article for the complete guide: Record and make bank deposits in QuickBooks Online.

Once you're done, you'll want to see all your sales and income transactions on a certain report like the Profit & Loss or the Balance Sheet in QBO. In case you need help in doing so and a guide in familiarizing how to utilize the Reports feature, please check out this article as your reference: Run reports in QuickBooks Online.

Also, you may want to check out these articles as your reference if you need to know more details about how should bank deposit works and processing credit card payments through QuickBooks Payments in QBO:

• What are Bank Deposits in QuickBooks?
• Process a credit card payment in QuickBooks Online

You can keep me posted on how it goes in the comments below. If there's anything else you need or concerns about recording sales and income transactions in QBO, I'll gladly help. Take care, and have a great day, @cbanotai.