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Level 3

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

QBO needs to fix this issue ASAP!  I currently have the same issue as others in this thread.  I want to pass the processing fee on to the customers that want to pay via CC.  I currently do this by adding a separate line item on the invoice to show the customer how much they are being charged for using a CC (because QBO doesn't offer the option of auto charging the fee when paying with an alternative payment method).  The problem is that QBO picks up the entire invoice amount as income.  It also shows these transactions as negative numbers for some reason on the Transaction Report??  This means I show the entire amount as income and it doesn't show as a true expense.....actually the the opposite since it comes in as a negative number.  What am I missing??

Moderator

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

Hi there, Jarm.

 

Thank you for your feedback as this isn't available for now. However, I can send this to our product developers for reviewed. 

 

On the other hand, the reason the processing fee is added as income it's because the Income account in the item selected. You'd want to use the expense account. Then, make sure to update the historical transactions.

To edit the item setup:

  1. Go to Products and Services tab.
  2. Click on the Edit link for the item.
  3. Choose the expense account for the processing fee.
  4. Check the update historical transactions box.
  5. Click on Save and close.

1.PNG

 

In the meantime, you may want to consider the other workarounds provided in the previous answers.

 

Here's an article about the processing fee: Process a credit card payment in QuickBooks Online

 

If you have any questions, we would like to answer them. We are here to help. 

Level 1

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

This doesn't offer a solution to a client that would rather pay by ACH bank draft in order to save a credit card processing fee. In other words, if you were to add a service charge to your invoice but the client pays by bank draft, there will be a balance remaining if they omit the processing fee charge.

QuickBooks Team

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

Thanks for joining this thread, @johnscibal. Merchant fees are a part of running a business. I know that the 2.9 or the 3% CC fees could hurt you or your customer if it is added to their invoice.

 

If your customer opts to pay the invoice by ACH bank draft instead, I'd suggest you edit the invoice to remove the charges before receiving the payment. This way, you will have an accurate recording of your invoice payments. Here's how: 

 

  1. Go to the Sales tab on the left menu. 
  2. Select Invoices.
  3. Locate the invoice you'd like to modify.
  4. Choose View/Edit in the drop-down arrow under Actions
  5. Make any necessary changes, then choose Save and send or Save and close.

 

You can also read through our help article: Process an ACH Bank Transfer from a Customer. It will guide you in processing ACH bank transfer for your customer's invoice. 

 

Let me know if you need help with anything else about QuickBooks. You can always count on us here at any time. 

 

Level 2

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

Quickbooks needs to add an option that we can toggle that automatically adds the processing fee's to an invoice that has its respective payment options enabled on it.

 

For example: If I send an invoice for $100.00 before tax, with the option to pay by card, QB would automatically add the 2.9% of the billable amount to the invoice as a "convenience fee" line item before sending to the customer. 

 

Quickbooks, please implement this. There is obviously a great demand.

Moderator

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

Hello kurtis,

 

I understand how this option will help you and your business save time by adding the processing fees automatically when customers pay by credit card. I'm personally taking note of your request with regards to the automation for the billable amount into the invoice as a line item.


For now, the only available option in QuickBooks is to assign which expense account for tracking processing fees automatically. However, please note this is only applicable to those who signed up for payments and connected to QBO.

 

Here's a sample screenshot for your guide:

 

 

For additional reference, I'm also attaching the article I recommend about tracking payments and processing fees through merchant services:

 

Choose where to record payments and processing fees for QuickBooks Payments.

 

Additionally, to stay up to date to new features and options, I recommend visiting the QuickBooks Blog website as well.

 

Let me know if you have additional questions about tracking credit card fees. I'll be here to help.

Level 1

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

WOW 

TMI for the problem at hand 

most processors charge anywhere from 1.5-3% fee on total amount. All you have to do is add a 4% charge to invoice on the total amount say 10k would cost 300 bucks at 3%. Very simple you charge 400 at 4% fee for cc use. Run the transaction at 10400. In turn u are charged 312. At 3% however u had 400 allotted. The end ur

not out anything 

Level 1

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

0.971x - 0.25 = y

 

y is the total amount you need to net. For example, if you sold a product that cost $4000, y would be $4000. 

x is the amount you need to bill to actually net the correct amount after the fee. In this example, the total invoice should be $4119.72. 

Level 1

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

If a Colorado business (or one of the other states mentioned) is going to pass along transaction fees as a convenience fee instead, do they have to let customers know ahead of time?

QuickBooks Team

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

Hi there, J0hnGalt.

 

We implement any directives from the states. If Colorado will have that option, we'll let our engineers know.  You can also contact your state on how they'll update the customers.

 

You can check out these articles on how the credit card processing fee works in QuickBooks Online:

 

Please reach out to us if you need anything else with credit card processing.

Level 1

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

That's great if they pay with credit card.  I have jobs that people want to pay with credit card but my bill is 15,000.00$.  I can calculate the fee for them but what if they decide to pay with check because they don't want to pay the fee.  So do I have to go back into the invoice and take it off of there? 

QuickBooks Team

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

Hi jbergerplumbing,

 

You can go back to your invoice and remove the processing fee. Let me guide you on how to edit your invoice.

  1. Click Sales on the left menu.
  2. Go the Invoices tab.
  3. Select the invoice that you want to edit.
  4. Remove the processing fee.
  5. Click Save and close.

However, I recommend reaching out to your accountant for other ways on how to do it.

 

I have included this article in case you have other questions about QuickBooks Online (QBO): Sales And Customers.

 

Please let me know if you need anything else. I'll make sure to help.

Level 1

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

HI Betty Jane, 

I have the same issue, but perhaps I processed it differently and may not be correct.

I work with projects where I follow up cost and revenue for each project we get.

On my template invoice I added a service called: "Credit card processing fee" and I tried to assign the 3% proc fee to a suspense account whereby all charges I add to a client will be deducted at the end by the charges I have from bank. The diff will go to bank expense.

The QBO does not allow me to assign a suspense account. It assigns an INCOME account to that.

In your explanation, you add the expense account:"Bank charges"  and let you assign it to an EXPENSE account rather? Please help. . I can't change it from income.

Anticipated thanks for your kind advice.

Moderator

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

Thanks for posting the details, @Gee4.

 

There are two options available when setting up the service item in QuickBooks Online. There's a box for I sell this product/service to my customers, and I purchase this product/service from a vendor.

 

Since you're adding an expense, the suspense account should be added below the Purchasing Information section.

 

Here's how:

 

  1. On the left navigation bar, click Sales.
  2. Go to the Products and Services tab.
  3. Choose the item.
  4. Select the Edit option below the Action column.
  5. Put a checkmark beside I purchase this product/service from a vendor.
  6. Add an expense account.
  7. Click Save and close.

I'm attaching some screenshots for your visual reference:

 

 

 

Additionally, the following article provides an overview about setting up services or non-inventory items:

 

Track your services or non-inventory items.

 

I want to make sure you have all the information you need, so please let me know if you have any other questions. I’ll be right here to assist further. Enjoy the rest of the day.

Level 1

Re: How do I add the credit card processing fee to an invoice without being charged the processing fee for the base amount AND the processing fee?

Can you please let me know how you fix this issue. I am confuse with all answers. Thanks 

QuickBooks Team

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

I'm here to ease your confusion, Ramez Said.

 

You'll be charged for a processing fee every time a payment is processed. This will be deducted automatically from the total invoice amount. That means, we're unable to add it on your invoice and let your client shoulder the processing fee.

 

We can read this articles for additional details:

Just a heads up, there are states that charging customers a fee for credit card payments is prohibited. I can still send feedback about this to our developers. 

 

Post again or comment below if you have more questions.

Level 2

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

Quickbooks sent an email recently about the updates coming in November. Among these updates is adding the option to automatically add the processing fees to the invoice for the customer in the payment window when they choose to pay bu credit card.

 

what happened to this update?

QuickBooks Team

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

Hi there, @oudpro.

 

We’ve added a new workflow that QuickBooks Online merchants can now let their customers pay a fee for the convenience of paying online. 

 

The convenience fees setting can be turned on by going to:

 

  1. From the Gear icon, select Account and Settings.
  2. Choose Sales, then find Convenience Fees.
  3. Turn the setting On and select the percentage (1%-4%).

 
Once you've done turning on the feature, let's create a sample invoice to verify if the convenience fee will apply. I’ve attached a screenshot for your reference:

 

 

Please visit this article for more information on how to use the Pay down a credit card: Simplify credit card payments with a new workflow.

 

If you have additional questions in QuickBooks. I'm just a post away. Have a good one.

Level 2

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

@Michelle_b ,

 

I can’t find this option in my sales page under Account and settings for my QuickBooks online. I have attached a screenshot of the sales settings page. 

Thanks.

QuickBooks Team

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

Hi @oudpro,

 

The steps provided by @MichelleBh above are for Merchant Services Center (MSC), and not for QuickBooks Online (QBO). That's the reason why you don't see that option. 

 

I suggest you sign in to your MSC and change it from there. 

 

You can also check out this article: Sign in to the Merchant Service Center from QuickBooks Online. Here you'll find the steps on how you can access MSC in QBO.

 

Feel free to leave a comment below in case you have additional queries. I'll be sure to get back to you.

Level 2

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

@Ryan_M ,

 

I don’t think the screenshots and steps provided by @Michelle_b are for Merchant Services Center (MSC). The screenshots looks more like the QuickBooks online interface. MSC interface is completely different and does not have any of the menus mentioned by @Michelle_b .

 

However, if this option can be turned on from the MSC portal, please provide steps for it. I looked through all the settings in the MSC but I couldn't find it. Please advise. Thanks. 

Moderator

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

Thanks for getting back to us, @oudpro.

 

I read your whole conversation with my colleagues above. To add some clarification, the email you've received is about the feature that currently in Beta testing called Automatic late fees.

 

Based on the screenshot you've shared, the feature is already in your QuickBooks Online (QBO). To turn it on, please follow these steps:

 

  1. In the Accounts and Settings, go to the Sales menu at the left pane.
  2. Click the Pencil (edit) icon in the Late fees section. 52.PNG
  3. Place a checkmark in the Default charge applied to overdue invoices box,
  4. Specify the Type, Amount, Grace Period, and how it will show up on the invoice.
  5. Hit Save53.PNG

 

For additional information, consider checking out this article: Setting up and applying automatic late fees.

 

Please let me know if you have any other concerns or issues in the comment section below. I'm more than happy to help. Have a great weekend!

Level 2

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

@FritzF the late fees option is different and it was released earlier. What @Michelle_b shared is for a new feature called convenience fees. It was part of the new November update.

It seems like QuickBooks decided not to add this option after the press release and email, or it postponed to be included in future releases. 

QuickBooks Team

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

Thanks for the clarification, @oudpro.

 

The Convenience fee feature hasn't completely rolled out yet to all QuickBooks Online (QBO) users. Rest assured you'll get to experience this feature as soon as it'll be available to all.

 

For now, I encourage you to visit our QuickBooks blog page to know more about the latest news and release in QBO.

 

Also, in case you want to learn how to record a deposit in QBO, I've got you this great article for the detailed steps: Record a Retainer or Deposit.

 

As always, don't hesitate to leave a comment below if you have any questions. We're always here to help.

BNC
Level 3

Re: How do I add the credit card processing fee to an invoice without being charged the processin...

Is there an option for this on QuickBooks Desktop Premier 2018?

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