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usernmiller
Level 1

What is the difference between "record as transfer" and "record as credit card payment" in Quickbooks online?

Both the credit card and checking acct used to pay off the credit card are synced w/ QB and the bank feeds are downloaded automatically. When I go to record the transaction to the register - there is an option to "record as transfer" or "record as credit card payment" what is the difference between these two options and which one should I be using?
Solved
Best answer February 23, 2021

Best Answers
SarahannC
Moderator

What is the difference between "record as transfer" and "record as credit card payment" in Quickbooks online?

Hello there, usernmiller. Thanks for getting back to me.

 

You can actually record the payment or transaction either as Record as transfer or Record as credit card payment in QuickBooks Online. These options depend on how you want the system to handle the regular credit card you used for this transaction.

 

In this case, I'd recommend reaching out to your accountant for further assistance. They can ensure that the transaction will be recorded correctly according to your needs. This way, your bank transaction will keep accurate and prevent messing up your data. If you don't have an accountant yet, you may want to use this link to find one: https://quickbooks.intuit.com/find-an-accountant.

 

From time to time, you can visit these articles to gather more details when reconciling accounts in QBO:

 

 

Please stay in touch if you have other questions in regards to this or anything about QuickBooks. I'm here whenever you need more information. Take care and have a good one.

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7 Comments
SarahannC
Moderator

What is the difference between "record as transfer" and "record as credit card payment" in Quickbooks online?

Hello there, usernmiller.

 

Let's differentiate between Record as transfer and Record as credit card Payment in Quickbooks Online.

 

Record as transfer is used to move money from one account to another within the same financial institution. While recording as credit card payment is specific to credit card only. This option helps you have a prepaid credit card and transfer to use it. If using a regular credit card, you'll be credited by the bank. Then, you pay it at a later time.

 

In this case, it depends on how you can record the transfer in the register. You may want to use this link I've added below to learn more about organizing your transactions from the Banking page: 

 

 

Please let me know if you have other questions. Take care and stay safe.

usernmiller
Level 1

What is the difference between "record as transfer" and "record as credit card payment" in Quickbooks online?

I am using a "regular" credit card but the payments are automated and show up in the QB bank feed. All I have to do is add the payment to both the credit card that is being paid and the checking account it is being paid from. I know how to categorize and add general expenses, but I also know credit cards are not considered expenses, rather liabilities, and I have the chart of accounts set up to correctly categorize the transaction as so. 

 

I have attached a screenshot for an example of a transaction. In this instance should I be using the record as credit card payment? Does this just differentiate the transaction from a general transfer of funds? A step by step process from this view would be very helpful. Thank you! 

usernmiller
Level 1

What is the difference between "record as transfer" and "record as credit card payment" in Quickbooks online?

I am using a "regular" credit card but the payments are automated and show up in the QB bank feed. All I have to do is add the payment to both the credit card that is being paid and the checking account it is being paid from. I know how to categorize and add general expenses, but I also know credit cards are not considered expenses, rather liabilities, and I have the chart of accounts set up to correctly categorize the transaction as so. 

 

I have attached a screenshot for an example of a transaction. In this instance should I be using the record as credit card payment? Does this just differentiate the transaction from a general transfer of funds? A step by step process from this view would be very helpful. Thank you! 

usernmiller
Level 1

What is the difference between "record as transfer" and "record as credit card payment" in Quickbooks online?

 

I am using a "regular" credit card but the payments are automated and show up in the QB bank feed. All I have to do is add the payment to both the credit card that is being paid and the checking account it is being paid from. I know how to categorize and add general expenses, but I also know credit cards are not considered expenses, rather liabilities, and I have the chart of accounts set up to correctly categorize the transaction as so. 

 

I have attached a screenshot for an example of a transaction. In this instance should I be using the record as credit card payment? Does this just differentiate the transaction from a general transfer of funds? A step by step process from this view would be very helpful. Thank you! Example.png

 

SarahannC
Moderator

What is the difference between "record as transfer" and "record as credit card payment" in Quickbooks online?

Hello there, usernmiller. Thanks for getting back to me.

 

You can actually record the payment or transaction either as Record as transfer or Record as credit card payment in QuickBooks Online. These options depend on how you want the system to handle the regular credit card you used for this transaction.

 

In this case, I'd recommend reaching out to your accountant for further assistance. They can ensure that the transaction will be recorded correctly according to your needs. This way, your bank transaction will keep accurate and prevent messing up your data. If you don't have an accountant yet, you may want to use this link to find one: https://quickbooks.intuit.com/find-an-accountant.

 

From time to time, you can visit these articles to gather more details when reconciling accounts in QBO:

 

 

Please stay in touch if you have other questions in regards to this or anything about QuickBooks. I'm here whenever you need more information. Take care and have a good one.

View solution in original post

confused_office_mgr
Level 1

What is the difference between "record as transfer" and "record as credit card payment" in Quickbooks online?

I have the same exact question as usermiller.  And I would like to pose the question again because the answer provided is not very clear.  A more thorough explanation would be helpful and greatly appreciated.

 

Thank you.

Jen_D
Moderator

What is the difference between "record as transfer" and "record as credit card payment" in Quickbooks online?

Thanks for reaching out to the QuickBooks Community page, @confused_office_mgr,

 

Allow me to share some more insights about the credit card payment options in QBO. When you pay your credit card dues, there are several ways to record payments.

 

There is not much difference with the "record as transfer" and "record as credit card payment", as it's main function is to offset the liability.

 

If the CC and the paying bank account are both connected for online banking, the system will let you record a payment as a transfer. This means that you are directly transferring the funds from the bank to categorize the CC payment. Reduce the bank balance and the CC liability.

 

It goes the same way as using the Record as credit card payment option. The only difference, is it requires you to add a vendor name to it. The entry is then added to the list of transaction under the name specified on the payment.

 

To give you some more ideas about recording CC payments, please see this article: Record your payments to credit cards

 

Let me know if there's anything else I can do to help you. Reach out back to me again so I can assist you again. Have a good one!

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