How do I add the credit card processing fee to an invoice without being charged the processing fee for the base amount AND the processing fee?

Thank you for your response!  However, I don't think it answers my question.  I know how to create the invoice with the fee, what I'd like to know is if the processing fee, that I'm going to be charged, is going to apply to the total invoice amount of $5,145?  So now the fee will be $149.21 ($5,145 x 2.9%), instead of the original $145 ($5,000 x 2.9%).  If so, I wouldn't receive the full $5,000, I'd only receive $4,995.79.  I know it's a small difference but in time it adds up. 

Thanks for explaining further what you're trying to accomplish, @KrisG9988.

Allow me to provide some clarification about your credit card processing fee concern. 

If you are using the merchant services when processing payments for invoices, being able to add the credit card processing fee for your customer's invoice isn't applicable. This is because the credit card processing fees are charged every time you do a transaction. 

Yes, you are correct. When you process an invoice for $5145 (invoice amount and credit card processing fee) you'll still be paying another 2.9% which would be a total of $149.21. That said, you won't be able to receive the full invoice amount.

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

• Everything You Ever Wanted to Know About Credit Card Fees.
• A quick guide to Credit Card processing.

This should get you moving today.

Please let me know if you have more questions about this concern. I'm always here to help. Take care!

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@KrisG9988 wrote:

Thank you for your response!  However, I don't think it answers my question.  I know how to create the invoice with the fee, what I'd like to know is if the processing fee, that I'm going to be charged, is going to apply to the total invoice amount of $5,145?  So now the fee will be $149.21 ($5,145 x 2.9%), instead of the original $145 ($5,000 x 2.9%).  If so, I wouldn't receive the full $5,000, I'd only receive $4,995.79.  I know it's a small difference but in time it adds up. 

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The calculation is  A / (100 - fee)  * 100, where A is the amount you want to receive 

So 5000 / 97.1 * 100

= 5149.33

That’s what I ended up doing. We just started excepting c/c payments so I don’t know how QB handles the processing fee.  Thanks!! 

Has this question been answered correctly yet? There should be a clear explanation of how to apply surcharges in Quickbooks for credit card processing without incurring a higher fee from Merchant Accounting. I have Quickbooks Desktop Premier 2018, not Quickbooks Online.

This explains how to record a deposit, not how to add a surcharge to an invoice without increasing the fee to process a credit card.

I'm pretty new to the QB Community and in general, however, in reviewing this message, I am thinking about just charging a standard 3% fee to all our credit card customers.  So, if you need to get $5000 for a service in the original example, charging the 3% would be a fee of $150.  Then, the merchant service charges you 2.9% on the $5,150 =  $149.35.  Therefore, you would end up with a net $5,000.65.  We currently take all kinds of cards and they each charge differently.  But over the course of the month, it all averaged out to about 2.8% overall.  So, yes, I might make a few cents on the dollar, but if you tell all your customers a simple 3% fee will be applied to all card transactions, then you won't have to try and figure out a different amount each time, and it makes up for the processing fee for you fees, if you follow me.  This is what I'm thinking about doing myself.  If anybody has any opposition or comment that this would not be a good idea, please feel free to share.  thanks.

The issue I am finding with even calculating the fee and adding it as a line item on the invoice is that you need to know before making the invoice how that customer is going to pay.  I find some customers usually pay with check, but because the option is on the invoice, they sometimes pay via credit card.  So I cannot determine ahead of time exactly how the customer is going to pay.  What would be so great would be if we send the invoice as normal, but when a customer pays via credit card, have the payment page add the fee at that time, then take your fee amount and pay us the invoice amount.  Simple and headache free!

Hi Kris,

I've ran into a similar problem - I'd like to bill my customers for the processing fee as part of the transaction being processed. I.e. have them pay for the fee directly. Did you ever figure out how to pass that onto them properly? Do you mind reaching out to me to let me know what you ended up doing? [email address removed]

Thanks!

Sam

According to this Dallas News article from Nov 2018, Texas overturned the ruling.

https://www.dallasnews.com/news/watchdog/2018/11/21/texas-law-banning-surcharges-credit-card-payment...

This article from 2 days ago states the same thing. 

"Texas
As of 2018, Texas businesses can surcharge. In Rowell v. Paxton, the court determined that surcharging is considered protected speech under the First Amendment. Thus, the Court ruled Texas’ “no surcharge” law unconstitutional.

CardX’s Razi tells CardFellow, “With this legal victory, Texas joins California and Florida as states where “no-surcharge” restrictions have been declared unconstitutional. Now, Texas businesses have the option to pass on the fee when their customers choose credit cards for convenience or rewards.”"  

https://www.cardfellow.com/blog/checkout-fees-charging-credit-card-fees-to-customers/

However the law is confusing to interrupt and still states that business can't charge a fee. Contact an attorney to clarify. 

Actually, it's legal in TX now to charge the customers the fee. The law was deemed unconstitutional in 2018. :)

Yes!  This is exactly what I am looking for also.  Pleae hurry Intuit.

SAME HERE

Sorry, I am latching on to this thread.....

Is there a way to make it so the customer assumes responsibility for the transaction fees whether through a merchant card of ACH when they go to pay their bill through an online invoice?

QBO needs to fix this issue ASAP!  I currently have the same issue as others in this thread.  I want to pass the processing fee on to the customers that want to pay via CC.  I currently do this by adding a separate line item on the invoice to show the customer how much they are being charged for using a CC (because QBO doesn't offer the option of auto charging the fee when paying with an alternative payment method).  The problem is that QBO picks up the entire invoice amount as income.  It also shows these transactions as negative numbers for some reason on the Transaction Report??  This means I show the entire amount as income and it doesn't show as a true expense.....actually the the opposite since it comes in as a negative number.  What am I missing??

This doesn't offer a solution to a client that would rather pay by ACH bank draft in order to save a credit card processing fee. In other words, if you were to add a service charge to your invoice but the client pays by bank draft, there will be a balance remaining if they omit the processing fee charge.

Quickbooks needs to add an option that we can toggle that automatically adds the processing fee's to an invoice that has its respective payment options enabled on it.

For example: If I send an invoice for $100.00 before tax, with the option to pay by card, QB would automatically add the 2.9% of the billable amount to the invoice as a "convenience fee" line item before sending to the customer. 

Quickbooks, please implement this. There is obviously a great demand.

WOW 

TMI for the problem at hand 

most processors charge anywhere from 1.5-3% fee on total amount. All you have to do is add a 4% charge to invoice on the total amount say 10k would cost 300 bucks at 3%. Very simple you charge 400 at 4% fee for cc use. Run the transaction at 10400. In turn u are charged 312. At 3% however u had 400 allotted. The end ur

not out anything 

0.971x - 0.25 = y

y is the total amount you need to net. For example, if you sold a product that cost $4000, y would be $4000. 

x is the amount you need to bill to actually net the correct amount after the fee. In this example, the total invoice should be $4119.72. 

If a Colorado business (or one of the other states mentioned) is going to pass along transaction fees as a convenience fee instead, do they have to let customers know ahead of time?

That's great if they pay with credit card.  I have jobs that people want to pay with credit card but my bill is 15,000.00$.  I can calculate the fee for them but what if they decide to pay with check because they don't want to pay the fee.  So do I have to go back into the invoice and take it off of there? 

HI Betty Jane, 

I have the same issue, but perhaps I processed it differently and may not be correct.

I work with projects where I follow up cost and revenue for each project we get.

On my template invoice I added a service called: "Credit card processing fee" and I tried to assign the 3% proc fee to a suspense account whereby all charges I add to a client will be deducted at the end by the charges I have from bank. The diff will go to bank expense.

The QBO does not allow me to assign a suspense account. It assigns an INCOME account to that.

In your explanation, you add the expense account:"Bank charges"  and let you assign it to an EXPENSE account rather? Please help. . I can't change it from income.

Anticipated thanks for your kind advice.

Can you please let me know how you fix this issue. I am confuse with all answers. Thanks 

I'm here to ease your confusion, Ramez Said.

You'll be charged for a processing fee every time a payment is processed. This will be deducted automatically from the total invoice amount. That means, we're unable to add it on your invoice and let your client shoulder the processing fee.

We can read this articles for additional details:

• Accepting credit card payments: The Basics

• Common questions about paying invoices online

Just a heads up, there are states that charging customers a fee for credit card payments is prohibited. I can still send feedback about this to our developers. 

Post again or comment below if you have more questions.