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Polly1
Level 3

How can I record a credit card fee, when the customer paid in full but we were charged a fee by merchant services, so the fee will be included in the costs for a job?

When a customer pays with a credit card, we record the payment in full against the invoice.  But we are charged a fee for each credit card payment we accept.  This throws off our costing for the job.  How can we record that fee and include it in the cost for the job, without affecting the customer's balance?
6 Comments 6
AileneA
QuickBooks Team

How can I record a credit card fee, when the customer paid in full but we were charged a fee by merchant services, so the fee will be included in the costs for a job?

Hi there, @Polly1.  

 

Thank you for posting to the Community. 

 

We can do it manually by adding a new line item on your customer's invoice for the convenience fee.

 

Here's how:

  1. On your invoice transaction, click an empty line below the Product/Service column.
  2. Select Add new from the product or service drop-down.
  3. Choose Service.
  4. Enter the description of the convenience fee on the Name field.
  5. Click Save and close.
  6. Once done, enter the Rate.
  7. Click Save and Close.

 

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Also, you can record credit card charges directly from the Merchant Service Center. Please check out this article if you want to know more about the process: Process payments in the Merchant Service Center.   

 

Additionally, I've added articles that you might find helpful:  

Keep me posted if you need help about credit card fees in QuickBooks. I'm just post away. Have a lovely day!

Fiat Lux - ASIA
Level 15

How can I record a credit card fee, when the customer paid in full but we were charged a fee by merchant services, so the fee will be included in the costs for a job?

@Polly1 

As additional option, should you have many convenience fee data to record, prepare it in XLS and utilize the importer tool to migrate it in batch.

https://transactionpro.grsm.io/qbo

https://partners.saasant.com/affiliate/idevaffiliate.php?id=5051_2

 

Hope it helps.

Polly1
Level 3

How can I record a credit card fee, when the customer paid in full but we were charged a fee by merchant services, so the fee will be included in the costs for a job?

Thank you, I certainly appreciate all the time and trouble you took to provide this detailed information, but unfortunately it's not quite what I was asking.  "How can we record that fee and include it in the COST for the job, without affecting the customer's balance?"   Example: our technician charged the customer $526.35 and the customer paid that amount with a credit card.  We did not charge the customer a processing fee, which turned out to be $12.21.  We want to charge that $12.21 fee to the job's COST without making it look as if the customer still owes us $12.21 (that is, we don't want to add it to the invoice--- we want to charge it to the job without affecting the customer's balance).  Can you please explain how to do that?  Thank you.  

Polly1
Level 3

How can I record a credit card fee, when the customer paid in full but we were charged a fee by merchant services, so the fee will be included in the costs for a job?

Thank you, I certainly appreciate all the time and trouble you took to provide this detailed information, but unfortunately it's not quite what I was asking.  "How can we record that fee and include it in the COST for the job, without affecting the customer's balance?"   Example: our technician charged the customer $526.35 and the customer paid that amount with a credit card.  We did not charge the customer a processing fee, which turned out to be $12.21.  We want to charge that $12.21 fee to the job's COST without making it look as if the customer still owes us $12.21 (that is, we don't want to add it to the invoice--- we want to charge it to the job without affecting the customer's balance).  Can you please explain how to do that?  Thank you.  

Polly1
Level 3

How can I record a credit card fee, when the customer paid in full but we were charged a fee by merchant services, so the fee will be included in the costs for a job?

Thank you, AileneA--  I certainly appreciate all the time and trouble you took to provide this detailed information, but unfortunately it's not quite what I was asking.  "How can we record that fee and include it in the COST for the job, without affecting the customer's balance?"   Example: our technician charged the customer $526.35 and the customer paid that amount with a credit card.  We did not charge the customer a processing fee, which turned out to be $12.21.  We want to charge that $12.21 fee to the job's COST without making it look as if the customer still owes us $12.21 (that is, we don't want to add it to the invoice and charge the customer more than they already paid--- we want to cost it to the job without affecting the customer's balance).  Can you please explain how to do that?  Thank you.  

IamjuViel
QuickBooks Team

How can I record a credit card fee, when the customer paid in full but we were charged a fee by merchant services, so the fee will be included in the costs for a job?

Thank you for sharing a complete detail of your concern, @Polly1.

 

Recording your credit card processing fees depends on how it appears on your bank statement. Let me share additional on how it works.

 

If the fee reduced the deposit or your customer's payments, you can create a Credit Memo to record the fees. You can create a Service Item for Transaction fees. Make sure to associate its income account as an Expense.

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You can refer to this article for more detailed steps: Apply a credit memo, credit or refund to a customer.

 

On the other hand, if the fee is recorded separately, wherein you received the customer's payments in full and a separate record for the transaction fee. You can create an Expense transaction for the fee. Make sure to put the name of the customer on the line item and remove the tick box on the Billable. For step-by-step instructions, you can visit this article: Enter, edit, or delete expenses in QuickBooks Online.

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To learn more how credit card processing fee works in QuickBooks, please check out these articles: 

Lastly, I'd suggest consulting an accountant so you'll be guided accurately in tracking your income and expenses. 

 

Looking forward to hearing again from you if you have other questions in recording your transactions. I'm always here to help.

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