How do I add the credit card processing fee to an invoice without being charged the processing fee for the base amount AND the processing fee?

Hi, @Lindaj215. Welcome to the Community. I can share some information that will help you understand more about the fees for QuickBooks Payments.

We understand that credit card processing fees can add up and that cash flow is important to small businesses. Because credit card surcharges are handled differently in each state, the function to automatically add processing fees to an invoice is not available at this time. The amount you'll pay usually varies, and it depends on how you process the transaction. The transaction fees will depend on whether you process the card through swipe (2.4%), invoice (2.9%), or key (3.4%), plus a flat $0.25 fee per transaction.

There will be no fees for the customers when they pay. This article can provide a much clearer view regarding the charges: Standard Payment Fees & Rates.

In states where it's permissible to impose surcharges, businesses are required to clearly show these additional fees at the time of purchase and on the receipt. If a business decides to apply a surcharge for credit card payments, it must adhere to specific guidelines, which can differ from state to state. These guidelines outline the proper procedures for implementing and disclosing these surcharges to customers.

To add a credit card processing fee to your invoice, you can create a service item and manually add it to your invoice. Alternatively, you can integrate a third-party app with your QuickBooks to streamline the process.

To begin, these are the steps:

1. On the left navigational bar, go to the Get paid and & pay the tab.
2. Choose Product & Service.
3. Click on New, and then select Service.
4. Enter the name of your service item. (Example CC Fee)
5. Select the account you'd use to track the processing fees.
6. Once done, click Save and Close.

Once done, add the credit card fee as an additional item on your invoice when you charge your customers with the processing fee.

I'm also adding this article to learn about personalizing the sales forms you send to your customer for future reference: Customize invoices, estimates, and sales receipts in QuickBooks Online.

For future reference, read through this article: Find out when QuickBooks Payments deposit customer payments. It helps you learn more about the turnaround time to get your customer payments in your bank account.

If you have any other questions or concerns related to your QuickBooks Payments account or managing your customer invoices, please don't hesitate to let me know. I am here to assist you.

You did not answer the question that was asked. Let me rephrase the question.  If I add a Product/Service such as Dues for $100 on the invoice and a Product/Service of CC Processing fees of $2.80 on the invoice, will the QuickBooks Merchant Plan charge me $2.80 or $2.89?  

I have the information to help you clear things up about the payment processing fees, Lindaj215.

Please be informed that the deduction of fees from your invoice will be determined by the specific type of payment you choose, as well as the total amount of your invoice. It is important to note that the fees will be calculated as a percentage of the total payment amount. For the payment rates, visit this article: Standard Payment Fees & Rates | QuickBooks Payments.

You can also void or refund transactions in QuickBooks Payments.

Get back if there's anything else you want to clarify by leaving a comment below. I'm available 24/7 to assist you. Take care.

The online version I have is giving a rate that I can put in, but not a %.  I'd like to charge a 2.9 $ charge to cover the credit card fees, which in some cases can be up to $134 for me. And is this an income or expense to my company and should sales tax be added to it?  Alternatively what is a third party that can be linked to QB?

@WandaA 

You are B2B, correct?

I have replied your post to use another payment processor and accept B2B payments for free.

Thank you.  Yes, I finely received the response that their rate is based on the total billed. Since that includes the credit card processing fee i am charging for, we are paying a credit card fee on the charged credit card fee.  Not ideal, but it is what it is. 

Hi,

I am trying to add the credit card processing fee as you suggest as an additional service. However, I can’t set it to the 2.99% OF total cost and then the invoice calculates that for me…is there a way to do that? Or, I need to manually calculate 2.99% of the total rate and then add that $ amount to the invoice (and then do this manual process for each invoice?).

Thanks!

Thank you for reaching out. I understand that you're trying to add a credit card processing fee to your invoices in QuickBooks. While the option to  automatically calculate the fee as a percentage of the total cost is unavailable, I can provide you with some options to handle this, @LaurRK. 

You can manually calculate the 2.99% fee for each invoice and add it as a separate line item. Here's how you can do it:

1. Calculate the fee: Multiply the total cost of the invoice by 2.99% to determine the fee amount.
2. Add a line item: While creating the invoice, include a separate line item for the processing fee and enter the calculated amount.
3. Total calculation: Ensure that you adjust the total amount of the invoice to include the processing fee.

I appreciate your suggestion and encourage you to share your feedback with our product development team. They are continuously working to enhance QuickBooks Online and consider customer suggestions for future updates and improvements. 

Here's how: 

1. Click the Gear icon  at the top, and then tap Feedback
2. Enter your comments or product suggestions then select Next.
3. You'll be provided a list of suggested Help articles related to your comment. You can read through them or select Skip and send a message.
4. From the drop-down, choose the appropriate category, then select Send a message.

You can track your feature requests through our QuickBooks Online Feature Requests website. For more details, please browse through this article: How do I submit feedback?

Also, I'll be sharing these references that will help you create a template for your transactions in QuickBooks: 

• Create recurring transactions in QuickBooks Online
• Set up and send progress invoices in QuickBooks Online

Moreover, I'll add this article that tackles customizing invoices and other sales forms for future reference: Customize invoices, estimates, and sales receipts in QuickBooks Online.

Please post again or leave a comment if you have more questions about this or anything else. I'm always here to assist. Keep safe.

What I did was put in the product and services in. I then added the processing fee on another product line. Then I added a discount for that processing fee at the bottom under the subtotal of the invoice. This is the best solution I could find.

My suggestion is to use the total invoice value then add a "Credit Card Processing Fee" service item. Enter the total invoice in the "Qty" column, then add "0.0299" in the rate column which should add total Invoice+2.99% of total invoice.

@4Gal What is the name of the cc processing company that can integrate into QB, and add the processing fee?

It would be extremely helpful to everyone if Quickbooks could just automatically charge customers the CC fee or other processing fees if they choose that method. Maybe add a pop up screen to remind them of the extra fee when they select that option. 

Seems very time consuming and frustrating for the business owner to have to manually calculate the fee, add that line item and then if they do not pay using that method, we have to go back in and delete that fee on the invoice so it will show fully paid?

I would definitely expect Quickbooks to be able to simplify this for business owners. 

I appreciate your feedback about the credit card processing fee for your invoices in QuickBooks. Aside from sharing this in the forum, I encourage you to submit your feedback to our product developer in QuickBooks Online (QBO), Vieck.

The option to automatically charge customers is unavailable. To improve your experience, I'll route you to our product developer and discuss this with them. This way, they will review this and consider adding it to the next product update.

Here's how to submit feedback:

1. Go to the Help icon at the top menu.
2. Select Send Feedback Online and then click Product Suggestion.
3. Enter your request, then tap Send Feedback.

Keep an eye on your suggestions through this website and stay updated on recent developments by visiting our blog.

Furthermore, save this guide to personalize your sales forms according to your needs: Customize invoices, estimates, and sales receipts in QuickBooks Online.

If you have any other questions or issues concerning invoices and other transactions in QuickBooks, add them below. I'm always here to help.

@Vieck Concrete Studio 

If you are B2B, you can use a 3rd party payment processor to integrate with QBO and accept payments for free by ACH and cards as 4Gal mentioned.

QuickBooks is committed to following the statutes in every region, SS0. I can help you send a feature request about automatically adding a surcharge fee to invoices.

I appreciate the information you shared concerning the amendment to regulations regarding the disclosure of legally added surcharges to credit card purchases. We strive to make sales processing convenient for you, so I recommend sending this to our Product Development Team by following the steps below:

1. Go to the Gear icon at the top.
2. Under the Profile column, select Feedback.
3. Share your recommendation with the product, then click Next.

Monitor your suggestions on this website and stay updated on our blog for recent developments.

In the meantime, you can manually add service fees to invoices. It charges your customers accordingly while we wait for the functionality to be considered and implemented.

Here's an article to help you tailor sales transactions according to your needs: Customize invoices, estimates, and sales receipts in QuickBooks Online.

Use this reference for guidance in reporting your receivables: Record invoice payments in QuickBooks Online.

Your idea matters to us and the program. If you have further queries on registering sales transactions, aside from managing invoices, respond in this thread. I'll be here to address them for you.

Please share which outside processing you can export your invoices to collect CC processing fees.  I'd like this to be an option for my clients to pay via CC.

Thank you for joining this discussion, Jim. I’m glad you’re here to explore this topic with us. I’d like to take a moment to provide you with some detailed information about processing credit card fees.

While I cannot recommend a specific processing application for collecting credit card fees, I'll lay out the following steps you can follow to find a app suitable to your preferences. You can visit this QuickBooks App Store directly, or you can look through the Apps menu in your QuickBooks Online (QBO) account.

Refer to the steps outlined below:

1. Go to the Apps menu. 
2. Choose the Find apps tab. 
3. Select the application that suits your preferences. 
4. Click Get app now. 
   

Furthermore, I also recommend you submit a feature recommendation directly to our Product Developer about having the option to add or collect credit card processing fees on your invoices automatically. You may follow the outlined steps of my colleague JamaicaA on how to send one.

Comment below if you have additional questions about managing customer payments, Jim. My team and I are here to help and provide the support you need to ensure a smooth and efficient payment process. Your inquiries are important to us, and we are committed to addressing any concerns you may have. Stay safe and take care!

Do we need to tax the 2.99% cc fee if we add it to the invoice?

It's a pleasure to have you join this discussion, Getthem. I'll chime into this conversation to provide additional information about handling credit card fees in QuickBooks Online (QBO). 
 

The taxation for credit card processing fees depends on your local tax laws and regulations. In QBO, you can designate these fees as taxable or non-taxable. If your jurisdiction requires taxes for these charges, check the Tax column checkbox. Conversely, if they're exempt, leave this box unchecked.

Additionally, you have the ability to choose a specific tax category or mark these fees as taxable or non-taxable when creating this service. Following this process, simplifies your tax recordings within the system. To do this, navigate to the specific service and then select a category from the Sales tax category dropdown menu. 


Finally, I'd recommend consulting an accountant to guide you with this matter. These professionals have the necessary expertise to handle complex tax topics and offer personalized guidance tailored to your situation. 

Leave a comment below if you have additional inquiries or need further clarification on any aspect of processing fees or associated matters, Getthem. I'm committed to providing clear, accurate information to assist you in making informed decisions about your financial operations.