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Level 2

How to apply credit card processing fee in Receive Paymets

Hello community.

 

I'm new developer of QuickBooks and still learning QuickBooks business process.

 

I would like to how can I apply credit card fee in Receive Payments.

 

I read applying fee at  invoice and deposits.

 

Is it same way of them?

 

Thank you.

Solved
Best answer August 06, 2020

Best Answers
Moderator

How to apply credit card processing fee in Receive Paymets

Hello and welcome to the Community forum, Jaehoon Lee.

 

I'm glad to hear that you're now using QuickBooks to manage your business. Let me share some information about applying the credit card fee in QuickBooks Online. Both of them are correct, depends on the situation.

 

If we're using merchant services, we'll have to receive the full amount and deduct the credit card processing fee when depositing the payment. To guide you further, please follow the steps below:

 

Create an invoice and enter the exact amount. Then, make sure to add important details.

 

  1. Go to the +New button.
  2. Under Customer, select Invoice.
  3. In the Amount column, enter the correct amount.
  4. Then, Save and Close.

 

Once done, receive the full payment and deposit it to Undeposited Funds.

 

  1. Open the invoice you created.
  2. Select the Receive Payment button at the upper-right corner.
  3. Click Deposit drop-down arrow and select Undeposited Funds.
  4. Make sure to put a checkmark next to the invoice number.
  5. Enter the full amount. Then, Save and Close.

 

Lastly, enter the credit card processing fee to the bank account. Here's how:

 

  1. Follow the first step above.
  2. Select Bank Deposit under Other.
  3. In the Select the payments included in this deposit section, mark the invoice payment you received
  4. Expand the Add funds to this deposit section by clicking it.
  5. Enter whom you received it and add an expense account for the credit card processing fee.
  6. In the Amount field, enter a negative fee amount.
  7. Click Save and close.

 

On the other hand, if we're not using merchant services or we'll only want to record the fees manually in QuickBooks, we create a service fee item and manually add it as another line item on the invoice. Check this article to gather more details about it. It also provides steps on how to do it within your QBO account. 

 

Let me know if you have follow-up questions with this. I'll be right here anytime to back you up. Take care and have a nice day!

View solution in original post

QuickBooks Team

How to apply credit card processing fee in Receive Paymets

Allow me to jump in on this thread, @Jaehoon Lee.

 

Since we're unable to apply the credit card processing fee in the Receive Payment window, you'll have to manually add the fee on the invoice.

 

To begin, you'll have to create an expense account where you can post the fee. To do so, you may follow these steps:

  1. From the Accounting menu, select Chart of Accounts.
  2. Click New.
  3. On the Account Type, select Expense.
  4. On the Detail Type, choose the type of your account.
  5. Enter the name of your account.
  6. Once you're done, select Save and Close.

 

Then, let's create a service item for the credit card fee, you'll have to select the account you've created as an income account.

  1. Go to the Sales menu and then select Products and Services.
  2. Select Service.
  3. Enter the name for your item.
  4. Select Save and Close.

 

Once done, we can now add the fee to the invoice. Here's how:

  1. Go to the + New icon and then select Invoices.
  2. Select the name of the customer.
  3. Enter the necessary information.
  4. Add the service item that you've created on the second line.
  5. On the Amount column, add a negative sign on the fee (-2.75).
  6. Once you're done, select Save and Close.

 

To learn more how credit card processing fee works in QuickBooks, please check out these articles: 

 

Additionally, if you make a mistake and need to void or refund a transaction, you can learn how to refund and void payments you process in QuickBooks

 

Stay in touch with us if you need further assistance, Jaehoon Lee. We're always here to help.

View solution in original post

4 Comments
Moderator

How to apply credit card processing fee in Receive Paymets

Hello and welcome to the Community forum, Jaehoon Lee.

 

I'm glad to hear that you're now using QuickBooks to manage your business. Let me share some information about applying the credit card fee in QuickBooks Online. Both of them are correct, depends on the situation.

 

If we're using merchant services, we'll have to receive the full amount and deduct the credit card processing fee when depositing the payment. To guide you further, please follow the steps below:

 

Create an invoice and enter the exact amount. Then, make sure to add important details.

 

  1. Go to the +New button.
  2. Under Customer, select Invoice.
  3. In the Amount column, enter the correct amount.
  4. Then, Save and Close.

 

Once done, receive the full payment and deposit it to Undeposited Funds.

 

  1. Open the invoice you created.
  2. Select the Receive Payment button at the upper-right corner.
  3. Click Deposit drop-down arrow and select Undeposited Funds.
  4. Make sure to put a checkmark next to the invoice number.
  5. Enter the full amount. Then, Save and Close.

 

Lastly, enter the credit card processing fee to the bank account. Here's how:

 

  1. Follow the first step above.
  2. Select Bank Deposit under Other.
  3. In the Select the payments included in this deposit section, mark the invoice payment you received
  4. Expand the Add funds to this deposit section by clicking it.
  5. Enter whom you received it and add an expense account for the credit card processing fee.
  6. In the Amount field, enter a negative fee amount.
  7. Click Save and close.

 

On the other hand, if we're not using merchant services or we'll only want to record the fees manually in QuickBooks, we create a service fee item and manually add it as another line item on the invoice. Check this article to gather more details about it. It also provides steps on how to do it within your QBO account. 

 

Let me know if you have follow-up questions with this. I'll be right here anytime to back you up. Take care and have a nice day!

View solution in original post

Level 2

How to apply credit card processing fee in Receive Paymets

Hello SarahannC.

Thank you for your support.


Our system provides billing to receive payment.

Clients can pay invoices on our system and import invoices and receive payments data into Quickbooks.


I have no idea whether clients use deposit or not. 


My goal is to match the same data between our system and Quickbooks. because we provide up to receive payments.


Here's our company payment process.

1. Send an invoice $100 to john
2. John paid $100 using credit card

3. Our system add receive payments $100 (Amount $97.75 and fee $2.75)


If Quickbooks does not provide features, please let me know my alternative process logic.  

1. Create invoices $100 amount to Quickbooks

2. Create service item as credit card fee $2.75 on expense account

3. Create invoice includes service item of #2 

4. Create receive payments includes #1 invoice and #invlice

5. Quickbooks  show $97.5 in bank account  $2.75 in expense account

 

Thank you.

Level 2

How to apply credit card processing fee in Receive Paymets

Hello SarahannC.

Thank you for your support.


Our system provides billing to receive payment.

Clients can pay invoices on our system and import invoices and receive payments data into Quickbooks.


I have no idea whether clients use deposit or not. 


My goal is to match the same data between our system and Quickbooks. because we provide up to receive payments.


Here's our company payment process.

1. Send an invoice $100 to john
2. John paid $100 using credit card

3. Our system add receive payments $100 (Amount $97.75 and fee $2.75)


If Quickbooks does not provide features, please let me know my alternative process logic.  

1. Create invoices $100 amount to Quickbooks

2. Create service item as credit card fee $2.75 on expense account

3. Create invoice includes service item of #2 

4. Create receive payments includes #1 invoice and #invlice

5. Quickbooks  show $97.5 in bank account  $2.75 in expense account

 

Thank you.

QuickBooks Team

How to apply credit card processing fee in Receive Paymets

Allow me to jump in on this thread, @Jaehoon Lee.

 

Since we're unable to apply the credit card processing fee in the Receive Payment window, you'll have to manually add the fee on the invoice.

 

To begin, you'll have to create an expense account where you can post the fee. To do so, you may follow these steps:

  1. From the Accounting menu, select Chart of Accounts.
  2. Click New.
  3. On the Account Type, select Expense.
  4. On the Detail Type, choose the type of your account.
  5. Enter the name of your account.
  6. Once you're done, select Save and Close.

 

Then, let's create a service item for the credit card fee, you'll have to select the account you've created as an income account.

  1. Go to the Sales menu and then select Products and Services.
  2. Select Service.
  3. Enter the name for your item.
  4. Select Save and Close.

 

Once done, we can now add the fee to the invoice. Here's how:

  1. Go to the + New icon and then select Invoices.
  2. Select the name of the customer.
  3. Enter the necessary information.
  4. Add the service item that you've created on the second line.
  5. On the Amount column, add a negative sign on the fee (-2.75).
  6. Once you're done, select Save and Close.

 

To learn more how credit card processing fee works in QuickBooks, please check out these articles: 

 

Additionally, if you make a mistake and need to void or refund a transaction, you can learn how to refund and void payments you process in QuickBooks

 

Stay in touch with us if you need further assistance, Jaehoon Lee. We're always here to help.

View solution in original post

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