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Level 1

Credit Card payment not matching full amount when entering CC fee

I'm having trouble getting the invoice to equal $0.00 when entering CC fees.

 

We use First Data when running CC's for customer accounts which charges us a 3% fee. For regular payments, other than down payments, we add this 3% charge to the amount owed to ensure we receive the full amount. However, it is confusing me and has made it difficult to reconcile the main bank account.

 

My issue:

The customer owed $945 so I ran the card for $973.35 (945*0.03= 28.35, 945+28.35=973.35) along with another payment we DID NOT add the 3% fee too for $376. Since they were ran on the same day they were deposited as a lump sum into our bank account as $1,315.00. When I go to receive the first customer payment, I enter $973.35 and apply the $28.35 under the discounts tab but then the "amount applied" changes to $916.65. I don't understand why it is taking the discount from the "amount due" rather than the total I'm entering in "payment amount". 

 

Same goes for the second customer. I enter $376 with a discount of $6 to equal the amount deposited for the two and it shows applied as $364. PLEASE HELP!

1 Comment
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Community Champion

Credit Card payment not matching full amount when entering CC fee

Basic math. Take 100, add 3%, 103, right. Now deduct 3% 100? wrong, answer is 99.91

 

You might also be incurring a per transaction fee.

 

And math again, a full deposit of 1315 would represent, at 3%, 1355.67 if no per transaction fee and this does in no way equal what 973.35 +  376 less 3% equals of 1308.87. 

You should avoid deducting card fees against an Invoice as you collected all funds even if you pay to get them, it is Cost of plastic. Instead record full payment to Undeposited Funds, then create deposit deducting exact fees as your cost of transaction fee expense. Whether you added the fee to customer bill or not is not much different, except only add it to running the card if you added it to the price and made customer fully aware.

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