Why is it that when I make a credit card payment the balance in my QBO account goes negative instead of positive?

I assume that you mean the Credit Card account within QBO shows a negative balance after you enter a payment to the same Credit Card account.

Credit Card accounts work differently than bank accounts. They are a liability, not an asset.

So, when you pay for something with a credit card and enter that transaction into QBO, it will increase the Credit Card account balance by the amount of the transaction. This balance represents how much you owe the relevant credit card company.

Likewise, when you make a payment to the credit card company and enter said transaction into QBO, it will reduce the Credit Card account balance. This is because, after paying some or all of your credit card balance off, you will not owe as much to the relevant credit card company.

If you have not been entering all of the purchases you charged to your credit card, but still enter all of the payments you make to your credit card company, it is possible that you will end up with a negative balance on your Credit Card account within QBO.

This is because you are entering more payments than QBO has been led to believe that you owe to said credit card company.

It is similar to taking out a $1,000.00 loan and choosing to send them a check for $10,000.00 the next month. You are overpaying your liability.

Hello there, Rick.

In addition to what @FishingForAnswers provided, a negative balance on your credit card can also be a sign that you overpaid what you owe and that you'll want to review your transactions to ensure they're accurate. Keeping track of your purchases using credit cards inside your QuickBooks Online (QBO) company is one way to help you get a hold of your transactions. In this way, you can review and match them with your bank statements.

On the other hand, you can visit these articles to help you manage bank transactions and reconcile accounts inside the program:

• Categorize online bank transactions in QuickBooks Online.
• Reconcile an account in QuickBooks Online.

We look forward to having you here again if you have other questions or need help handling bank transactions inside QuickBooks. We'll be more than happy to help you out again. Keep safe and have a good one.

Hello,

I'm having the same issue. Every time i select "Record as credit card payment" for my credit card payments from my business checking, my credit card balance goes further and further negative (currently at -$69K).  But If i choose "Match" and match it to the credit card payment entry, then the credit card balance increases positively.  

I never had this issue before, I had always done "Record as credit card payment" but now it's just causing the balance to go further and further negative.

Is this an issue with the categorization method (match vs record as cc payment), or are my credit card expenses not being recognized as liabilities?

Thank you!

Hi there, dkoenigkann. Welcome to the Community.

If you've connected your bank account to QuickBooks Online (QBO), it will automatically download your transactions. If you've already recorded a credit card payment in QBO before the bank generates transactions, there may be duplicate records resulting in a negative balance.

To avoid getting a negative balance, you can match transactions and see if they have duplicates. You can undo the payment that you've recorded as a credit card payment and delete it afterward.

Here's how to undo transactions:

1. Go to Transactions. Then, go to Categorized.
2. Look for the transaction.
3. Under the Action column, click Undo.

You can keep track of your expenses and maintain accurate financial reports by recording your payments to credit cards in QBO.

In addition, You can start reconciling your account once your bank and credit card statements are categorized and matched.

Don't hesitate to comment if you still have concerns about your bank transactions. I'm always here to help you.