Charge Credit Card Fee

Welcome to the Community, @Adcetera.

I'm glad to see your post today. I can help you set up the convenience fee to add it on your client's invoice.

Here's the steps in creating a sales tax:

1. Click Edit.
2. Choose Preferences.
3. Select the Sales Tax tab.
4. Go to the Company Preferences tab.
5. Click Add sales tax item.
6. Enter the necessary information.
7. Click OK.

When creating an invoice, this is already added on the subtotal:

For in-depth information, please refer to this article: Set up sales tax in QuickBooks Desktop.

That should help you record your customer's transaction, Adcetera.

Let me know if you have follow up questions for me. I'm still here to help you more. Have a wonderful day!

I have sales tax set up and it shows on the invoice. My question is how to include the sales tax into the subtotal (because there are multiple items on the invoice) which is needed to add the 3% convenience fee.

Hello again, Adcetera.

Thanks for adding a screenshot for it gives me an idea how you enter the transaction. I can share some information about including the sales tax into the sub-total.

Currently, there is not an automatic way of adding the tax into the sub-total. However, adding more options when entering transactions is a good recommendation.

I’ve informed our product developers that you want to have the ability to automatically add the sales tax to the sub-total. They also want to know your thoughts on how we can improve the functionalities in QuickBooks, so I suggest sending your ideas via feedback.

Here’s how:

1. Go to Help at the top menu bar.
2. Select Send Feedback Online, then choose Product Suggestion.
3. Enter your thoughts and suggestions.
4. Click on Send Feedback.

Be sure to let me know if you have any questions—if you need anything else I'll be happy to look into it. Have a great day ahead.

Unfortunately they don't have a fix for this (I did report it to QB) and I can't imagine I'm the only one that would have this issue. 

Hello there, Adcetera.

I appreciate you for getting back and for sharing your concern with us.

Since I want your suggestion about adding tax into sub-total to be heard by our Product Development Team, let me personally pass along this feedback to add this to their priority list.

Please let me know if you have further questions about this or if you need help with something else, I'm always glad to help.

I am having the same issue trying to figure out the best way to impose the "credit card processing fee" so that it is based on the invoice total.  If you set up the "convenience fee" as a sales tax item, how would that work if you have customers that are tax exempt?

We can set up the credit card processing fee as a service or non-inventory type, sheenad. 

When we the set up the charge as sales tax item, QuickBooks will recognize that we'll pay the amounts to a tax agency. We can enter the fee as a Service or Non-Inventory type instead.

Let me show you how:

1. Go to the Lists menu and click Item List.
2. Select either Service or Non-inventory under the TYPE drop-down. 
3. Type a name like Credit Card Processing Fee  or Convenience Fee. 
4. Enter the Rate or Amount of the charge, or you can leave it as black if the charges differ.
5. Select the Account affected. 
6. Click OK. 

Then, add it as another line item every product where it'll apply. For example, Line Item 1, Line Item 2, CC charge, Line Item 4, CC charge. 

I'll be here if you need more help with recording your sales. 

After reading all the information here, I have realize (unfortunately!) that I can't collect credit card convenience fees AUTOMATICALLY when a client chooses to pay via credit card.  So, on select, large invoices when I KNOW a client will pay with a credit card, I will add a separate ITEM to account for the the 3.5% fee.  And since my accountant confirmed this is TAXABLE INCOME, I am setting it up to receive tax on the fee also (I am a NY State business).  But here is the question:  is there a way to AUTOMATICALLY CALCULATE THE 3.5% FEE in the item/invoice, or must I MANUALLY calculate each and every what the dollar amount should be?  I pray the former is possible, but I can't figure out how.   

Good afternoon, @Fort Hill. 

Thanks for joining in on this thread. I hope your day is going well so far. 

Yes, you'll need to manually enter this information into the system in order for it to be there. I can see how beneficial this would be for your business. 

With that being said, I'll go ahead and send feedback to our Product Developers so they can consider this in the near future. 

Feel free to come back with any other concerns you may have. We're always here to lend a helping hand. Take care! 

@Fort Hill 

Another option, utilize a 3rd party merchant service to do so.

OK, we've already determined, and frustratingly so, that QB won't allow its clients (me) to easily and automatically charge my clients credit card convenience fees when my client chooses to pay with a credit card.  Frustrating but at least we know the answer.  But now let's go the other way:  I want to send an invoice to a client and NOT allow them to pay via credit card so I don't get hit with QB's credit card fees.  Can you do this on a customer-by-customer basis?  I tried going into a particular customer's profile, going into "Payment Settings" and UNCLICKING the boxes in "Credit Card" and "Bank Transfer (ACH)", but when I send this client an invoice, it still allows the client to click the "View and Pay Invoice" blue button and it takes them to the credit card info input screen.  Why is that and how do I DE-ACTIVATE the ability for a customer to pay with a credit card?  Thank you.  

I can share some information that can help you set your payment options, @Fort Hill.

To isolate the issue you're having, I recommend reaching out to our Customer Support team. They can check your account in a secure environment and further check why your customer still has the option to send their payment through credit card even after updating their payment options from their profile.

You can follow the steps below on how to reach them:

1. From your QuickBooks Desktop account, click the Help menu at the top.  
2. Select QuickBooks Desktop Help.
3. Provide some information about this concern in the search box.
4. Click the Contact Us link at the bottom of the window. 
5. You'll now be provided with a few support options.  

Check this article for detailed guidance in reaching out to our Customer Support: Contact QuickBooks Desktop support.

For more information about changing payment options for specific invoices and customers, refer to the following article: Send online invoices in QuickBooks Desktop. 

To check when QuickBooks deposits customer payments into your bank account, see this article: Find out when QuickBooks Payments deposits customer payments.

I'm always here if you still have questions with your invoices and customer payments. Just let me know in the Reply section below. Keep safe and have a great rest of the day!​​

QuickBooks won't add a fee at time of payment, but if you know the customer will pay by credit card, you can add a percentage surcharge that will auto-calculate including the sales tax amount.

For example:

- If you want to charge 3% on the invoice taxable subtotal plus the tax and your tax rate is 5%, and the surcharge is not taxable, then add the sales tax rate to the discount rate:

3% Discount Rate *  (100% of taxable sale + 5% tax) = 3.15%

or

3% * 105% = 3.15%

- If you want to charge 3% on the invoice taxable subtotal plus the tax and your tax rate is 5%, and the surcharge is a taxable sale (more likely, probably), then setup a surcharge for:

(3% Discount Rate * (100% taxable sale + 5% tax)) + ((3% Discount Rate * (100% taxable sale + 5% tax)) + 5% tax * discount  percent * (100% +tax rate 5%) * tax rate 5%) 

or

(3% * 105%) + ((3% * 105%) * 105% * 5%) = 3.315%

or

3.15% + (3.15% * 105% * 5%) = 3.315%

We currently do not accept credit cards or ACH because of fees. We receive lump sum payments of larger amounts and that can get expense. However we want to start offering this option. Here is an example of my concern: Our invoice is $1000, processing fee is 3%. If the client wants to pay via credit card then they should pay $1030. However the way you are explaining it is that if I create a new line item for the fees, the total invoice amount is now $1030 not the original $1000 which means that the processing fee is now $30.09. On larger invoices this can be a bigger fee. Is there a way to set up credit card fees without creating a new item with some type of disclaimer stating the customer will be charged 3%? 

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@DBCC wrote:

Is there a way to set up credit card fees without creating a new item with some type of disclaimer stating the customer will be charged 3%? 

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@DBCC 

Utilize a 3rd party payment processor. If you are running a B2B company, you can utilize it for free.