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Level 1

Credit card fee refund

We use quickbooks pro desktop and set up our vacation rental customers as customers on quickbooks.  

We process our credit card payments with Square.  They deduct the fee from each payment before depositing to our account.  When we enter the payments we enter the credit card fee as a discount that goes to the credit card fee expense account.  My question is how do I enter a refund to the customer of their full payment plus enter the refund of the fees to me?  When I enter the customer refund of the full payment using the credit memo/refund feature it zeroes out the customer account but the credit card fee is still showing in my expenses.  Any help would be greatly appreciated!  I have already received two cancellations today due to the coronavirus travel ban so I will have more of these to enter, unfortunately :(

1 Comment
QuickBooks Team

Credit card fee refund

Hi @sandraq,


Thank you for posting here in the Community.


I can see how this pandemic is affecting your business. I'm here to guide you on how to get your customer’s refunds properly recorded in QuickBooks.


To zero out the credit card fee, we have to manually make a deposit.


Here’s how:


  1. Go to Banking and select Make Deposits.
  2. In the Deposit To drop-down button, select the account.
  3. Under the Received From column, enter the vendor’s name (Square.)
  4. Under the From Account column, enter the expense account (Discount.)
  5. Enter the amount of discount under the Amount column.
  6. Click Save and Close.


I’d suggest consulting your accountant to ensure your books are correct.


Also, if you want to check your customers' balances, please follow these steps.


  1. Go to Reports.
  2. Select Customers and Receivables and choose Customer Balance Detail.
  3. Modify the date range.


Please visit us again if there’s anything else you need. Keep safe.


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