Credit Card Processing Fee

QB Payment doesn't have such feature at this time. You need a third-party connector to integrate with QB Payment and have the ability to add additional fees to eInvoicing and payment links. They claim that this feature is the only GAAP and VISA compliant solution on the market. The connector will perform a real-time BIN lookup to verify that the customer is paying via credit card and charge the applicable fee then reconcile invoice and fees accordingly.

@HBDesigns 

Many states outlaw that practice so confirm yours isn't one of them.  Charging your customer a credit card fee looks bad.  It's like a retail store charging a customer a "rent fee" because the customer chose to shop in-store instead of online. 

No Quickbooks does not offer this feature although there is a workaround.

What's the name of the app you referring to?

What's the work around?

@NerissaR 

Are you running a B2B or B2C company?

I run both. I have B2B and B2C.

@NerissaR 

I would recommend this 3rd party connector

Contact me in private for details.

What would the income and expense accounts be if adding it as a service line item?

I am interested in charging a credit card fee, can someone please get back to me [Removed] or you can reach me at [email address removed]

@Koimarket  

Are you running a B2B or B2C company?

Thanks for posting here, @Koimarket. I'm here to provide information about the credit card processing fee in QuickBooks.

To clarify, are you referring to applying a credit card processing fee on your customer's invoices? If so, you have two ways to do this in QuickBooks. Follow along below to get this done right away.

The first option is to create a service item for the fee and include it on their invoices. For the detailed instructions, you can refer to the steps outlined by my colleague, KurtKyle_M. 

On the other hand, you can also look for a third-party connector app that can be integrated into the program to help add the processing fees. Please head to our QuickBooks Apps store to find one.

Then, to connect with our phone support team, you'll have to initiate a callback request or select the chat option. I also advised avoiding adding your contact information when posting here in the Community to prevent endangering your security and privacy. Below are the steps to reach out to them:

1. Go to the Help menu and click the Search tab.
2. Next, select the Contact us button.
3. From there, enter a brief description of your concern (example: Charging a credit card fee in QuickBooks). Then, click Continue.
4. Then, choose either Chat or Callback.

Once everything is fine, your next steps is to collect customer's payments and record it in QuickBooks. For guidance, feel free to check this article: Record invoice payments in QuickBooks Online.

Please get back here in this thread if you have any follow-ups about credit card fees. I'd also appreciate it if you can add updates on how the recommendation goes. I'm just around the corner and ready to help whenever needed. Have a good one and take care. 

I see how it is on the Invoice. But I'm confused on setting up the item for credit card processing fees. These charges are added on the invoice, and charged. That money should go into your bank act just like an payment.

But mine doesn't do that. I have it as a service and other income for the account.. Is that incorrect? If I change the account to my bank account it should show as a credit or increase but its not. it shows as a debit or decrease.

Barbara

Hello there, Barbara.

I'll share some insights about how QuickBooks Online (QBO) posts and treats your bank fee transactions so you can manage your sales and income accordingly.

Based on your description, I can tell you've correctly set up the credit card processing fee as a service item in QBO. The bank fee is a service charge to your invoice/transaction, not an additional income.

For example, you have an invoice of $100 and a credit card charge of $5. Your customer will pay you $105 with a bank fee. When you deposit, the bank fee is a negative amount since it's a service charge.

Also, you can use reports to get helpful insights on the things you buy and sell and the status of your inventory. You may want to check out this article as your reference to guide you in pulling up the report you need in QBO: Use reports to see your sales and inventory status.

Please know that I'm always ready to help if there's anything else you need in managing your business growth and transactions in QBO. Take care, and I wish you continued success, Barbara.

Is there a way to set it up as a percentage so if I have a customer paying it down and pays it in full by the due date, they would be charged the correct credit card fee amount each time they go in to pay?

This is a terrible solution, borderlining on a non-solution. Personally I am turning off the option to pay with a credit card. Quickbooks should just be able to add a flat percentage if (and only if) a customer chooses to pay with a card.

Hello there, 303User.

 I can see how adding a flat percentage when paying with a card is a great feature. With that, I'd suggest sharing this great idea with our developers. 

Here's how:

1. Select the Gear icon at the top, then Feedback.
2. Enter your comments or product suggestions. Then select Next to submit feedback.

You can track feature requests through the QuickBooks Online Feature Requests website.

 Feel free to check this article as your guide in recording invoice payments: Record invoice payments in QuickBooks Online.

I'll be around whenver help is needed.

I don't care if it "looks bad", if we're getting charged 3% fees on these credit card invoices, I'm charging for the convenience. 3% on a $10,000 sale is $300. If they want to save money they can pay cash, if not, pony up.

Hello, 

My company currently uses QB online and also QB payments in order to take credit card payments over the phone. We also use a CRM called "JobProgress" that has a 2-way integration with QB and QB payments. In our CRM, we have the functionality for the customer to pay online; however, my company is charged the credit card fee, not the customer. And as a multi-million dollar company, a 3-4% fee can be a huge expense. 

I have read the conversation on this page, and I know that you mentioned using a 3rd party app to automatically charge the customer that fee. In your image "QuickBooks Payments" is listed as one of the apps that has this feature. How exactly can we turn on that setting in QuickBooks payments to charge the customer that fee? 

Thank you. 

@Jloveland1 

QB Payment doesn't offer such feature. If you are running a B2B company, you can signup a separate Melio account for free and set your clients to pay the processing fees (2.9% fee to you or payor).

https://affiliates.meliopayments.com/pricing

What I have been doing is adding the processing fee toy invoice, advising the customer if they pay with a check to subtract the credit card processing fee off their invoice. 

Then I run into a problem of people not reading their invoices or email messages and pay the full amount by check so then I have to make a credit.

I wish their was an option when emailing an invoice that if paid by credit card it would automatically charge them the 3% fee.

It is 2023. Is it available now, the automatic credit card fee?

It has been a year since this post, has this feature become available?