Can you charge the customer for the credit card processing fee when they pay online?

You need to use a 3rd party processor to do so. If you are running a B2B company, you can use a free one to integrate with QBO.

Hi there.

I'll show you a way to charge credit card processing fees in QuickBooks Online.

Yes, you can charge credit card fees to your customers. However, if you use QuickBooks Payments to collect online payments from customers, the option to add it to a customer invoice automatically is currently unavailable. As a workaround, you can manually add it to the customer's invoice as a service item.

Here's how:

1. Go to the Gear icon, then choose Products and Services.
2. Click on New, then pick Service.
3. Enter the name of your service item. (For example; Processing Fee).
4. Select the account you'd use to track the processing fees.
5. Then, click Save and Close.

Once done, add the processing fee as an additional line item to your invoice to charge your customers. You can check out this article for the detailed steps: Manually add service fees to invoices in QuickBooks Online.

On the other hand, you can also provide feedback to our product development team to let them know how important this feature is and ask them to take it into consideration for the upcoming update. I'll show you how:

1. Go to the Gear icon at the top.
2. Select Feedback.
3. Enter your comments or product suggestions. Then click Next to submit.

Also, make sure that the correct payment and processing fee accounts are selected. You can find more information in the following articles:

• Choose where to record payments and processing fees for QuickBooks Payments
• Standard Payment Fees & Rates

I'll be around if you still have follow-up questions about payments and processing fees in QuickBooks. Keep safe!

I found a thread from over 3 years ago with people asking this same question.  The answer from Quickbooks was that they know this is wanted and their development team was looking into it.  Now, over 3 years later, the answer is still no, we cannot add the credit card fee to customer's invoices when they pay online unless we add it as a separate line item.  That's not a good option, and it seems no one is listening to what we want even though we are the ones paying for the service and keeping Quickbooks in business! 

I am getting more and more frustrated with QB.  As much as we pay monthly these things should be available.  

Part of the reason that they won't add it as a feature is because in some states it is illegal to charge the customer the processing fees.  

Will this option become available in Quickbooks anytime soon? 

@MN0423 

By looking for their response until yesterday, the answer is no. Having a third party solution is the only way out at the moment.

Charging customers for the credit card processing fee is a great functionality, MN0423.

As of now, the feature is still unavailable in QuickBooks Online. We don't have a specific timeframe for when this will be added to the program. I'd recommend sending a feature request directly to our Product Development team. Doing so helps us improve your experience and the features of the program. 

Here's how:

1. Go to the Gear menu and then select Feedback.
2. Type in your feature request in the description box.
3. Once done, click on Next.
   
   

In the meantime, you can follow Fiat Lux's suggestion to use a third-party application. To do so, I suggest visiting our QuickBooks Online Apps Store page. There, you can search for an app to integrate with the program.

Additionally, I've added an article that'll help you personalize the appearance and layout of sales forms so you can add the info that matters most to your business: Customize Invoices, Estimates, and Sales Receipts.

You can get back on this thread to stay informed if there are any updates regarding the availability of the option. If you have any other questions about the program's features, please don't hesitate to keep us posted. 

BUT ITS LEGAL FOR QUICKBOOKS TO CHARGE THIS FEE ?

I'm guessing they want us to be pressured into having a checking account through them directly which in turn i believe eliminates these payment processing fees. For years they have been ignoring requests for this to be addressed and I'm sure they benefit quite a bit from coercing members into opening checking accounts with them for this exact reason. Some of us don't have business that are making nearly enough money that we can afford to be paying out hundreds for a credit card fee out of customer payments which at times is more then half of my entire profit on a project. This has been a complaint of mine for many years. Errrrr.

I think you’re exactly right!  I would love to find an alternative to WB…too many basic needs not being met. 

I think you’re exactly right!  I’m looking for an alternative to QB, too many basic needs not being met.  

@circletoffice2 

I’m looking for an alternative to QB

I can share some options to compare. Contact me in private for details.

Hello,

thank you for your answer it is helpful. What are your suggestions on the category to use for the processing fee? Would that be an income? Are we able to edit the tax rate? Maybe we can edit the tax rate to the processing fee? 

please advise.

thank you

Welcome to the Community space, @Lixyi.

I'm here to share some insights about categorizing your transactions and editing tax rates in QuickBooks Online (QBO).

Yes, you can edit your tax rates in QBO. Here are a few things you need to know before you edit a sales tax rate.

• Changes you make will update the rates everywhere except for any past transactions.
• Existing transactions that used the earlier rate remain unchanged unless you edit the transaction and specifically select a different sales tax rate.
• If you create a new transaction but use dates in the past, the transaction uses the new rate.
• After you edit a rate, the earlier rate can no longer be used.
• For recurring templates that use the changed component, new transactions created with the template use the new rate. Existing transactions created with the template and the earlier rate remain unchanged.
• If you edit a sales tax rate you use on a template, you need to edit your template again to add the updated sales tax rate.
• Reports show the data for both rates (before and after) if there are transactions for both rates in a particular period.

When you use the automated sales tax feature, QuickBooks automatically generates the tax agencies and sales tax rates you need. Here's you can edit them:

1. Go to Taxes, then select Sales Tax.
2. Select Tax Settings.
3. From the Custom Rate section, find the sales tax rate you want to edit.
4. Select Edit, then update the rate accordingly.
5. Select Continue, then select Edit.

6.  

   If you’re still using manual sales tax, here's how to edit them:

    

   1. Go to Taxes, then select Sales tax.
   2. Under Related Tasks, select Add/edit tax rates and agencies.
   3. Select the rate you want to change from the Sales Tax Rates and Agencies table, then select Edit.
   4. Edit the tax rate you want. You can also change the component name if you like.
   5. Select Save.

As for the category, the processing fee may be under income. However, I recommend reaching out to your accountant to be guided with the correct categorization in your chart of accounts.

Moreover, I'm adding this helpful article as your reference in running reports in QBO: Run reports in QuickBooks Online.

Return to this post if you have other concerns about categorizing transactions and editing sales tax rate in QBO. I'll be here to lend a hand.