Online Payment Fee Showing Twice on Expense Reports

I'm not sure but the first thing to check is the P&L, is there one expense or two for the same transaction?

It may be that is just way they programed the interface, one entry removes funds from the account, and the second entry actually posts to the expense account.

Rustler,

We wondered the same thing and have already checked the P&L statements. Those show two separate entries which are both considered an expense. The total P&L definitely counts both lines. That is where we are having trouble. The P&L reports are doubling those expenses and don't line up with our other Expense tracking. The Bank account is not being billed, so the P&L reports are wrong.

Hey there, @Bret Stevens.

Thanks for bringing this up with us. 

Based on the data in your report, the transaction that shows "System-recorded fee for QuickBooks Payments. Fee-name: DiscountRateFee, fee-type: Daily" might be system generated. 

Since it's not directly affecting your accounts and only reflects on your reports, you can delete this payment fee to remove it from your records. 

Here's how:

1. Open the Profit and Loss report, then click the payment fee amount. This will automatically show the breakdown of transactions.
2. Find the duplicate payment fee and click again the amount.
3. Once the transaction is opened, select More and choose Delete.
4. Click Yes to confirm.

Additionally, I'd recommend reaching out to our QuickBooks Payments Support Team. This way, they can help you verify where might these data are coming from and how to stop this from reoccurring. 

If there's anything else you need, you're always welcome here in the Community to post again. We'll be always around ready to help.

Thank you, We have isolated the problem, but are unsure how to fix it.

The problem stems from using the Quickbooks Online payment system and having a linked bank account. The online payment automatically processes and is automatically recorded in quickbooks. The linked bank account also generates an automatic transaction for both the payment and the associated charge for quickbook services, resulting in both of these transactions appearing in the ledger twice.

Hey there, @Bret Stevens. 

Thanks for following up with us. I'm happy to lend a hand with your processing fees that are automatically added. 

Some customers have found it useful to create an item called "Fee" or whatever you wish to name it. Leave the amount line for this fee empty so you can manually put it in when adding. Then you can add this item to the invoice and put a negative amount for it on the invoice. This will subtract the fee from the invoice amount, so it matches the payment received. 

Let me show you how:

1. From the Sales menu, choose Product and Services. 
   • 
2. Click on New in the upper-right corner of the screen.
   •  
3. Pick what type of item you'd like to use. I've chosen service for this example. 
   • 
4. Fill out the information, but remember to leave the amount blank. 
   • 

Now that we have your item set up let's apply it to an invoice.

Here's how:

1. Enter your invoice as you normally would. 
2. On the next line item under Product/Service, add your newly create fee item. 
3. In the Amount column, enter a negative (-) amount of the processing fee. 
   • 
4. Hit Save and close when you're finished. 

That's all there is to it. Now the processing fee can be subtracted from your invoice. Please let me know if you have further questions or concerns. I'll be here every step of the way. 

Feel free to reach out to the Community at any time. Take care and have a great day! 

Have you figured out a solution to this? I am having the same issue while reconciling my account.

Did you find a fix? I am having the same issue while trying to reconcile.

Hi, tfish012. 

I'd be glad to help share a little more information on how to delete duplicate transactions in QuickBooks Online (QBO).

When QuickBooks Online downloads your bank transactions, we don't have control of what is being downloaded. There are times that the system can download duplicate or personal transactions associated with the account.

If you have duplicate bank transactions, you can exclude them from the transactions downloaded from your bank or financial institution. 

Here's how:

1. Go to the Banking menu or Transactions menu.
2. Click the Banking tab.
3. Click the For Review tab.
4. Select the checkbox of the transactions you want to exclude.
5. Select Exclude.

If you wish to fully delete these transactions, you can select them and click on Delete under Batch actions.

1. From the Excluded tab, put a check in the box for the transaction you'd like to permanently delete.
2. Choose Batch actions, then Delete.
3. You'll be asked if you're sure. Click Yes to confirm.

Once done, these items are no longer reported as part of your business finances and will not appear in any associated account registers or reports.

Aside from that, you can match the downloaded transactions with the one you already entered in QuickBooks to avoid duplicates. I've got a great article about adding and matching downloaded banking transactions. You can view it by clicking this link: Categorize and match online bank transactions in QuickBooks Online.

When you're ready, you can begin reconciling your account to ensure your books are correct. 

I'm always around to help if you have more questions about managing your banking in Quickbooks Online. Just add your reply in the comment section so I can assist you right away. Take care.

Ugh, QuickBooks help is so infuriating. Please stop telling us how to manually delete each transaction, that is not a solution it is a band-aid. Instead please spend your time fixing the problem internally so that we do not have duplicates continuously showing showing up while we try to run our businesses.

Alternatively let us disable this ridiculous 2 day deposit feature from QuickBooks so we won't be charged the fees in the first place. Nobody wants that feature anyway, it was clearly just a transparent money grab from QuickBooks because previously you could opt in if you wanted it.

Agreed. The issue here is Quickbooks automatically entering quickbooks fees. This includes the payment fees as well as other quickbooks service fees. They simply need to make a setting to disable this if the user wants. When you are downloading transactions from your bank, we do not need these duplicate fees. 

A real answer from someone who understands the situation would be helpful.

Just want to echo Hinter and Kevin's frustrations. I've just spent half an hour trying to find the solution to this issue; this help post is the top suggestion on Google and despite multiple replies from Quicken folks, none of them actually solve the issue at hand!

When you have a linked bank account and use Quicken Payments, the reconciliation process is messed up because the charge will show up in the register twice. I have multiple $10 debits I'm trying to deal with; one from the bank (Electronic Withdrawal Intuit Pymt Soln) and one from Quicken (System-recorded fee for QuickBooks Payments). Only one charge actually took place.

So what is the solution, Quicken? I would love to hear that you'll stop populating my register with duplicates, but that aside, the damage is done. So what am I supposed to do to reconcile the existing false entries?

This is due to the mapping of the QuickBooks Payment being put towards the wrong bank account when it is recorded automatically. The automatic fee needs to be recorded to the bank account that it actually gets deducted from.  This should help because when it hits your checking account it should allow you to match the transactions in the bank feed, which avoids the duplication. 

Yes, need an actual fix, please. That's what the fees are for in the first place.

Thanks for joining us here, @flatearthdesigns.

I know how imperative it is for the fees to be accounted for correctly in QuickBooks. Currently, the option to automatically separate the fee is unavailable. Rest assured your experience will be shared with our Developers. 

I also recommend sending a product request through this link: Customer Feedback for QuickBooks Online.

This way, our engineers will be able to formulate a permanent solution.

In the meantime, you'll want to follow the above steps provided by my peer @Tori B as a workaround.

I'm also attaching this link in case you need help with other payment-related tasks, It contains our general payment topics with articles: View all help for QuickBooks Payments.

Please know that you're always welcome to come back to this thread if you have follow-up questions or concerns with merchant fees. I'll be around for you. Take care and have a good one.

This is also happening to me! It is so confusing and frustrating. And unnecessary! The fee is being recorded by the bank in my QB register. Why do they feel it necessary to record a duplicate transaction that affects my P/L and expense reports? 

It seems from all the research I've done on this, Reymonds solution is the best. 

Has anyone actually figured out how to fix this duplicate fee charge from quickbooks? Is there a step by step solution on how to resolve this issue without messing up the Expense Report or the P&L report? 

Thanks for replying in this thread, @lastingimp.

The option to separate fee charges is currently unavailable.  We'll take note of your experience and share it with our Developers. In the meantime, you'll want to follow the steps provided by my peer in deleting duplicate transactions. 

I'd also recommend consulting with your accountant for additional guidance in deleting transactions. This will ensure the accuracy of your books after making some changes. 
If you don't have an accountant, visit our ProAdviser page, and we'll help you find one from there.

Let me know if you have further questions about duplicate transactions. I'd be happy to help. Keep safe!

Just set up a DISABLE feature that the business owner can use to turn of System-recorded fees and fix it. I too think the forced $10 fee for an ACH payment is too steep, and then to have this duplication of expense in the P&L and when reconciling is a huge pain!

You're making total sense here, @blueskysage,

I appreciate you sharing some insights that can be used as a workaround for turning off system-recorded fees. I'd recommend sending feedback for that workaround. This way, our software engineers can review and may implement your idea in the future. 

Here's how: 

1. Open your QuickBooks Online account.
2. Go to the Gear icon and select Feedback.
3. Type in your suggestion and click Next.

I've included this link as well in case you need assistance with any other payment-related activities. It comprises our general payment subjects and articles: View all help for QuickBooks Payments.

Should you need further assistance with QuickBooks payments and fees, feel free to leave a reply. I'm here anytime. Have a great one!

Someone already stated that it would be passed to the developing team back in January of 2022.  Any progress?

I appreciate you for participating in this discussion, @LauraB77. 

Currently, QuickBooks Online (QBO) automatically records deposits and fees deducted from your QuickBooks Payments transactions. I understand the significance of being able to turn this off. However, there is no clear timeframe for when this option will be available. While we value your opinions, they are still subject to review and approval by our software developers.

As long as you submit feedback to our Product Development team, rest assured we'll release updates to our website as soon as they become available. Here's how:

1. Go to the Help menu and select Send Feedback Online.
2. Click the Product Suggestion option.
3. Enter your feature request and select the Send Feedback button.

Visit the Customer Feedback page to track the status of your suggestions.

If you'd like to learn more about QuickBooks Payments, here's a complete list of articles that can help answer your questions: QuickBooks Payments FAQ.

Keep me posted whenever you have inquiries about Payments. I'm always available to continue assisting you. I hope you have a good day!

This is still happening!

3+ Years to put a on/off toggle button? And still nothing...

Should I just set a rule to exclude the bank transactions that say "TRAN FEE"??

I appreciate your time in posting your concern here. Let me share some information about excluding bank transactions.

It depends on your specific needs and preferences. Excluding bank transactions with the description "TRAN FEE" in QuickBooks Online can be useful if you want to filter out those transactions and focus on other aspects of your financial records. However, it's important to consider the potential impact of excluding these transactions.
 

If "TRAN FEE" transactions are related to bank fees or charges that are relevant to your financial reporting, excluding them might lead to incomplete or inaccurate records. It's recommended to review the nature of these transactions and determine if they should be included or excluded based on their relevance to your financial analysis and reporting.
 

If you're unsure, it's always a good idea to consult with a financial professional or accountant who can provide guidance tailored to your specific situation. If you're not associated with one, we can help you find one through this link: Find an Accountant.

For more information about excluding transactions, see this article: Exclude a bank transaction you downloaded into QuickBooks Online.

The Community is open 24/7 if you have additional questions and concerns. Just don't hesitate to leave a reply. Have a good one!