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info30
Level 1

How do you add a percentage on the invoice to cover the credit card processing fee? and if it CAN be done, how does it show up in QB?

We are losing money when our members/vendors pay invoices via the merchant account. Need to know if a 3% processing fee can be assessed for invoices that are paid only by credit card. It would automatically need to be added when the credit card info is entered for payment. Can this be done?
Solved
Best answer December 10, 2018

Best Answers
Rustler
Level 15

How do you add a percentage on the invoice to cover the credit card processing fee? and if it CAN be done, how does it show up in QB?

You would have to create an other charge item, add it to the invoice an set the amount or rate

as far as legality:
Surcharging for using a CC card is illegal in the following states: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.

You can however offer a discount for cash in those states - except in New York no cash discounts are allowed

New fed laws went into effect in Jan, 2013 allowing surcharges providing the retailer

make customers aware up front that there is a surcharge and how much for using a CC - at the store entrance and at the cash register or if an online store at the first reference to accepting CC for sales

can not use a surcharge for debit cards or prepaid cards

surcharge fees must be itemized on the receipt, in store or online

http://usa.visa.com/personal/using_visa/checkout_fees/index.html

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9 Comments
Rustler
Level 15

How do you add a percentage on the invoice to cover the credit card processing fee? and if it CAN be done, how does it show up in QB?

You would have to create an other charge item, add it to the invoice an set the amount or rate

as far as legality:
Surcharging for using a CC card is illegal in the following states: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.

You can however offer a discount for cash in those states - except in New York no cash discounts are allowed

New fed laws went into effect in Jan, 2013 allowing surcharges providing the retailer

make customers aware up front that there is a surcharge and how much for using a CC - at the store entrance and at the cash register or if an online store at the first reference to accepting CC for sales

can not use a surcharge for debit cards or prepaid cards

surcharge fees must be itemized on the receipt, in store or online

http://usa.visa.com/personal/using_visa/checkout_fees/index.html

View solution in original post

Anonymous
Not applicable

How do you add a percentage on the invoice to cover the credit card processing fee? and if it CAN be done, how does it show up in QB?

I don't know if it can be done automatically...my guess is no, but you should determine if it is legal in your state to do that.  In many states this practice is illegal.

 
jlittle
Level 1

How do you add a percentage on the invoice to cover the credit card processing fee? and if it CAN be done, how does it show up in QB?

In August of 2018 a Federal Judge in Austin overturned that law for Texas.  It made it all the way to the Supreme Court, they kicked it back down to the State and the judge overturned it claiming it was unconstitutional.

jlittle
Level 1

How do you add a percentage on the invoice to cover the credit card processing fee? and if it CAN be done, how does it show up in QB?

In August of 2018 a Federal Judge in Austin overturned this law.  The case made it all the way to the Supreme Court. who kicked it back down to the state.  At that point the judge overturned it saying it was unconstitutional.

bvindas
Level 2

How do you add a percentage on the invoice to cover the credit card processing fee? and if it CAN be done, how does it show up in QB?

Creating a separate line item places the amount into sales income on the P & L.  Do you know how to avoid this?

AlexV
QuickBooks Team

How do you add a percentage on the invoice to cover the credit card processing fee? and if it CAN be done, how does it show up in QB?

Hi bvindas,

 

We can change the affected account for the charge item. Let's make sure it's not an income account. You can follow these steps on how to change it:

  1. Go to Sales tab and select the Products and Services.
  2. Locate the charge item you've created. Then, click on Edit.
  3. Change the Income account.
  4. Click on Save and close.

If it's your expense, you'll want to change it to an Expense account. Additionally, I'd recommend to seek help from an accounting experts. They can guide you on how to handle credit card processing fees and the proper way to record it. They can also advise you on what account should be use.

 

I'll be glad to work with you again. 

bvindas
Level 2

How do you add a percentage on the invoice to cover the credit card processing fee? and if it CAN be done, how does it show up in QB?

What account should it be changed to?

APL
Level 3

How do you add a percentage on the invoice to cover the credit card processing fee? and if it CAN be done, how does it show up in QB?

Not Solved.  Not sure why Rustler's reply got voted best answer when he doesn't even directly answer the question.  Creating another charge item on the invoice for the CC fee simply means you will be charged a CC fee for the CC fee you put on the invoice.   Plus, as a business owner I do not know how my clients are going to pay, and it may be different month to month, that is why we have options on invoices so putting a CC fee directly on the invoices is not practical.  It should be added in after the fact in the merchant service account when the customer chooses to pay with a Credit Card. Intuit takes their fee and deposits the full invoice amount in the desired linked account.

katherinejoyceO
QuickBooks Team

How do you add a percentage on the invoice to cover the credit card processing fee? and if it CAN be done, how does it show up in QB?

Hi there, @APL

 

Great to see you here in this conversation. I can see your post similar to this. Please refer to my answer on your post on this thread: Re: How do I add the credit card processing fee to an invoice without being charged the processin... 

 

Don't hesitate to visit again if you have additional questions. We're always glad to help. 

 

 

 

 

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