How to record an instant transfer fee?

@Koko2 

You are charged 1% to get paid via Bill.com?  Is that a QuickBooks fee?  1% is A LOT for an ACH payment.

Consider setting up an account directly with Bill.com.  They charge $0.49 to get paid via ACH.  There is a monthly fee, depending on the number/$ amount of payments you receive/make each month, it may well be cheaper.

Thanks! I'll look into it now! 

Hello, 

why can’t we just skip the step of recording the payment and do match and categorise? The invoice amount is adjusted by negative fee and should be matching. Am I missing something?
 

Hello, 

Why can’t we just skip the step of recording the payment? We should be able to match and categorise on Banking, since the invoice amount is adjusted with negative transfer fee. Am I missing something? Please correct me 

Thanks for checking in with us, GLine.

Yes, we can skip the step of recording the payment as long as we can match the invoice directly in the online banking transactions for payments and deposits. As long as you enter the fee in that invoice as what you can see in the Invoice window in which it is included in the memo.

However, there may be times when the bank transaction amount (payments/bank fees) doesn't quite match the transaction you entered in the invoice. When you go to the Banking page, they don't add up even though they're the same entries. In this case, just use the Resolve difference feature to match them and fix the payment differences until it equals to zero. Let me guide you on how:

1. Go to Bookkeeping, then Transactions.
2. Choose Bank transactions.
3. Select the For Review tab.
4. Find the said transactions, and then select the Find match button to open the Match transactions window.
5. Look for and select the invoice payments to match. You can also use the filters to narrow down your search.
6. Scroll to the bottom of the table, and then click the Resolve Difference button.
7. Enter the $0.8 difference in the Add resolving transactions section. Make sure the total is zero.
8. Press Save when you're ready.

For more details about matching your transactions, please see this article: Categorize and match online bank transactions in QuickBooks Online. Additionally, I've added this article that'll help you review your accounts in QuickBooks to make sure they match your bank and credit card statements: Reconcile an account in QuickBooks Online.

Know that our door is open 24/7 if you need assistance performing specific tasks in QuickBooks. You can also utilize the REPLY button below if you have any additional QuickBooks-related concerns. Rest assured, our team would be happy to help you once again. Thanks for choosing QuickBooks. Stay safe, and have a good one!

I'm not sure I'm happy with this approach. If I were to run a statement for my customer it would look on the statement as if they made a payment 1% less than what they paid, which we know is not the case. How can I record a payment (that matches the actual payment the customer made) yet account for that 1% variance another way? The 1% fee is between me and their bank, not between me and the customer.

Thanks for joining us here, Jeffrey. I understand reconciliations can get a little tricky when service charges are involved. Our goal is to provide a smooth experience handling these types of payment transactions accurately on your books.

When accepting online payments through an external processor, bank service fees are deducted from the total deposit. This is why the actual deposit is not the same as the full invoice and payment in QuickBooks.

To properly account for these service fee without impacting the invoice and payment, I'd like to share an alternative workaround. 

First, receive the payment outside the invoice. This will make sure that the invoice and payment inside QBO are still the same amount. Here's how:  

1. Click the + New button and select Receive Payments.
2. Enter all the payment information.
3. Check the box next to the invoice you would like the payment to be applied.
4. Select Undeposited funds as the deposit to account.
5. Click Save and close to record the transaction.

Next, create a manual deposit to move the payment to the bank. Here's how:

1. Go back to the + New button and Bank Deposits. You should see the payment you entered in the Select Existing Payments section at the top.
2. Place a checkmark to select the payment you want to deposit.
3. Proceed to the Add other funds to this deposit section, enter the amount of the bank service fee charged to you by the bank as a negative amount.
4. From the Account section, select the Expense account you usually use in tracking bank fees.
5. Verify that the deposit amount is correct.
6. Click Save and close to record the transaction.

Lastly, match the manually recorded bank deposit with the downloaded transaction in your online banking. 

Using this workaround, the invoice and payment remain unaffected. The customer statement would also reflect the correct amount when you send it to your customer. At the same time, you can still match the actual deposited amount and account for the processor fees.

Allow me to share these articles in case you need more guidance and resources when working with your banking transactions: 

• Exclude A Bank Transaction You Downloaded Into QuickBooks Online
• Interest Or Bank Charges Shows Up Twice When Reconciling And In The Register In QuickBooks Online

Don't hesitate to let me know if you need any other assistance or have follow-up questions, Jeffrey. The Community team is here to ensure you can properly reconcile these third-party payment deposits and fees within QuickBooks Online.