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Credit Card Processing Fee

Forum|Forum|4 years ago
April 28, 2022
5 replies
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Is there a way to automatically include the credit card processing fee to your invoices so that the customer gets charged?

QuickBooks Online

Best answer by Kurt_M

Hi there, @HBDesigns. I'll share some information about how you can add the credit card processing fee to your invoices in QuickBooks Online (QBO).

To add a credit card processing fee to your invoice, you can create a service item, then manually add it to your invoice. You can also consider a third-party app and integrate it with your QuickBooks. To begin, these are the steps:

On the left navigational bar, go to Get paid and & pay tab.
Choose Product & Service.
Click on New then select Service.
Enter the name of your service item. (Example CC Fee)
Select the account you'd use to track the processing fees.
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.

In case you'd like to use a third-party app, here's where you can find one in QuickBooks Online:

Sign in to your QuickBooks Online Company.
Go to Apps tab.
On the search bar, type the name of the that you'd like to integrate with your QBO account.
Click the Search icon.

For visual reference, you can refer on the screenshot below.

Feel free to visit these handy articles for future reference:

Know that I'm just a click a way if you need further assistance with this. Have a nice day!

Fiat Lux - ASIA

Level 14

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.

K

Kurt_M

Answer

QuickBooks Team

Hi there, @HBDesigns. I'll share some information about how you can add the credit card processing fee to your invoices in QuickBooks Online (QBO).

To add a credit card processing fee to your invoice, you can create a service item, then manually add it to your invoice. You can also consider a third-party app and integrate it with your QuickBooks. To begin, these are the steps:

On the left navigational bar, go to Get paid and & pay tab.
Choose Product & Service.
Click on New then select Service.
Enter the name of your service item. (Example CC Fee)
Select the account you'd use to track the processing fees.
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.

In case you'd like to use a third-party app, here's where you can find one in QuickBooks Online:

Sign in to your QuickBooks Online Company.
Go to Apps tab.
On the search bar, type the name of the that you'd like to integrate with your QBO account.
Click the Search icon.

For visual reference, you can refer on the screenshot below.

Feel free to visit these handy articles for future reference:

Know that I'm just a click a way if you need further assistance with this. Have a nice day!

A

ACE SEAL

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

C

Chemistry 12

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?

Rainflurry

Level 11

@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.

P

peterhgr

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.