How do I charge a customer a merchant fee if they pay by card through quickbooks?

Let me help you charge a customer with the merchant fee paid by card through QuickBooks Online (QBO), krucki.

You'll want to create a service item for the fees and manually add it to your invoice. Additionally, you might wish to include this in the default email message you send with invoices. Here's how to create the fee as a service item so you can add a fee with a detailed description to invoices: 

1. Go to the Gear icon, then choose Products and Services.
2. Click on New, then select Service.
3. Enter the name of your service item. (Example: Processing Fee).
4. Select the account you'd use to track the processing fees.
5. Once done, click Save and Close.

If you’ve already sent them their invoice, create an invoice with the service fee. If you haven’t sent them, just make sure to add them before sending the invoice. Here's how: 

1. Go to Get paid & pay or Sales.
2. Select Invoices.​
3. Choose the invoice you want to add a service fee.
4. Tap Edit invoice.
5. From the Product or service dropdown, select the service fee you created.
6. In the Amount field, enter the amount of the service fee.
7. In the Note to customer section, add a note about the fee.
8. Press Review and send.

Another choice is to generate the deposit and include negative amounts for the fee along with your transactions. I'll demonstrate how:

1. From the Bank Deposit window, scroll down to the Add funds to this deposit section.
2. Enter the fee as a line item.
3. Choose from whom the fee was received in the Received From section.
4. Tap Bank Charges from the Account dropdown.
5. Enter the amount fee as a negative number. For example, if the fee was US $5, enter –5.
6. Review the deposit total with the bank fee.
7. Press Save and close.
   
    

Additionally, make sure the appropriate accounts for payments and processing fees are chosen as well. You may refer to these articles:

• Choose where to record payments and processing fees for QuickBooks Payments
• Standard Payment Fees & Rates

I'm just one post away if you need assistance with running your invoice and payment reports. The Community forum is always open to answer your questions. Have a great day. 

But how do you charge the credit card fee at point of check out vs as a separate line item on the invoice?

Welcome to the Community, @Jaamed.

Adding a credit card processing fee in an invoice and at the point of check out have the same process. You can add the charge as a line item.

You can create a service item and manually add them to your invoice or sales receipt.

Here's how:

1. Go to Sales, then choose Products and Services.
2. Click on New, then select Service.
3. Enter the name of your service item.
4. Select the account you'd use to track our processing fees.
5. Once done, click Save and Close.

You can then add the item manually to an invoice or sales receipt. Follow the steps provided by my colleague above. You can also choose to add the item in the deposit as a negative amount. Add the fee as an additional item on your invoice every time you charge your customers with the processing fee. 

You can browse through the following articles to learn more about credit card processing. From there, you’ll learn about fees, regulations, and requirements that come when you accept credit cards.

• Credit card processing
• Common terms to process credit cards for Intuit Payments
• Take and process payments with QuickBooks Payments

Don't hesitate to click the Reply button below if you need further assistance charging the customer a credit card fee. I'm always here to help. Have a great day.

The main question remains! If we don't know the payment method beforehand? you offer multiple payment options. for example if I do not see them, provide my service then leave the invoice in the mailbox with the qr code they can pay by card or check or bank transfer they could also run into me a couple of houses away and have the card for me to key in. All of these methods incur different fees or none at all. your recommendations/solutions. have me add a fee regardless that could either be to much to little or confusion if they pay by check and should have no fee.

The main question remains! If we don't know the payment method beforehand? you offer multiple payment options. for example if I do not see them, provide my service then leave the invoice in the mailbox with the qr code they can pay by card or check or bank transfer they could also run into me a couple of houses away and have the card for me to key in. All of these methods incur different fees or none at all. your recommendations/solutions. have me add a fee regardless that could either be to much to little or confusion if they pay by check and should have no fee.

Hi, @arbormd.

Please know that we value your suggestions. I understand that what my colleagues provided above doesn't meet your business needs. With this, I recommend sending this suggestion to our Development Team so they can consider adding it to future product enhancements.

Here's how:

1. Click the Gear icon and choose Feedback.
2. Enter your feedback Suggestion.
3. Press Next.

Kindly refer to these articles for more insights about the terms, agreement, and answers to the most frequently asked questions about QB Payments:

• Intuit Payments Merchant Agreement
• QuickBooks Payments FAQ

Stay in touch if you have other questions or concerns about supervising payments and transactions. I'll be right here to answer them for you.

@arbormd 

Consider having a 3rd party payment processor.

This is exactly my problem. I should not have to add a line item as they suggested. Ridiculous that the software cannot add the fee on the Merchant Service side.

I have my credit card fee show as a income account (NON-CASH) separate on my customer's invoice but

it does not go into the account I created. It stay in the Account Receivable Account.

Thanks for joining us here, McWha-Fischer624.

Can you confirm if the credit card fee was manually added as a line item on the customer's invoice?

Please note that QuickBooks Online uses double-entry accounting. When creating an invoice, it will increase your Accounts Receivable (AR) account, which includes the original sale price, plus the credit card fee you added.

At the same time, the original sale goes to your sales income account. Then, the fee goes to the income account you specified. The fee will remain as part of the AR total until the customer pays the invoice.

You can run a Transaction Journal report to view all accounts affected when creating an invoice. Here's how:

1. Open the invoice.
2. Click the More at the bottom of the transaction.
3. Choose Transaction Journal from the pop-up menu.

The Transaction Journal report will open, showing a list of every account affected by that single invoice, along with the corresponding debit and credit amounts.

Please don't hesitate to reply to us again if you have any further questions.