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The math doesn't work out calculating the merchant fee that way: starting at $10,000 and working up versus starting at the total amount with the merchant fee included and working down. The way you're doing the calculation now is as if asking: $10,000 times 2.9% plus $.25 gives me what number? The number you arrive at is: $10,290.25.
But, the way it should be asked is: what percent of the total transaction number will give me $10,000 after the merchant fees? In order to do this, you have to DIVIDE the $10,000 by the inverse of the percent and then add $.25. It would look like this: $10,000 / (100%-2.9% = .971) + $.25. Then the number you arrive at is: $10,298.91. This will create a total charge in which the merchant fee will result in you receiving the exact $10,000 you initially expected.
That $8.66 difference over multiple $10,000 transactions definitely adds up to a shortage on your end. I know this, because I've had to do this several times across multiple clients over the years and it's been a pain in the rear.
And yes, I've had to do this with my credit card paying customers every time and it's a pain in the rear need to determine how they're paying before I can send them the invoice.
Quickbooks please get your act together and make this automatic already. It's a simple simple simple fix!
One reason I would understand the resistance is if some states may not legally allow merchants to charge the merchant fee back to the customer. In Florida, I believe it was once illegal and merchants had to be careful how they worded the charge as a "service fee" or other legal terminology, but I think that law has now been repealed. Every state may be different and that may be a challenge for Quickbooks to adjust their code to 50 differing legislatures. But if that's the case, at least let us know! Either way it's up to the merchant to manage their own state's laws when running their business. To indemnify themselves (and protect their customers), Quickbooks might need to code in a warning pop-up when selecting the payor-pays-merchant-fee option in illegal states.
But honestly, this feature should be instituted by QB as it's a super simple fix in the whole scheme of things and most other payment system already offer this feature anyway! So what's the big hold up?!
I'm surprised Quickbooks offered this mathematical advice when it's not exactly correct based on the rules of percentages. In order to arrive at a $10,000 final payment to the merchant, the mathematical question is "what number do I multiply by 97.1% minus $.25 in order to arrive at $10,000?"
How is the item set up. and shouldn't the additional fee charged on the invoice go into your bank balance?
Barbara
I'm here to guide you on how you can set up additional fees on your invoices, ACE SEAL.
Yes, you're right! Processing fees on your invoice once added will go into your bank balance. Generally, you have two options on how you can set up processing fees in QuickBooks Online (QBO). You can enter them as a service item so you can add them every time you create an invoice. I've outlined the detailed steps below:
Another option is to enter them as deposits with negative amounts together with your transactions. Here's how:
The steps above should let you add fees and work with QuickBooks on the right track. In addition, learn from this article on how you'll have to match with transactions that you've already entered in QuickBooks: Categorize And Match Online Bank Transactions In QuickBooks Online.
Let me know if you need anything else about processing fees. I'll be sure to help.
I appreciate your effort and trying to answer our question, but respectfully you are missing the whole point.
We still have to calculate a 3% fee for every invoice manually when your system could allow a way to add a simple way to add a percentage like it auto calculates tax, that is what we are looking for ans asking for. This solution is not a solution it still doesn't address our biggest issue.
Thank you for your understanding and addressing this issue correctly.
Square actually provides a toggle for the user to select to pay the fees or pass them on to the customer.
Quickbooks is truly NOT Quick! The developers are very capable of providing this option, but after years of your loyal customer comments, Quickbooks chooses not to offer this option. You are only looking out for your bottom line, and not looking to support the needs of your small business customers. Shame on you Quickbooks! For such a large company, you should be embarrassed not to offer this basic feature.
So, after paying for subscription fees to QBO, we now have to pay for another subscription. Seems like quite a racket!
Really tired of your same scripted "answers" QB!!!! You are not trying to help us with this issue at all. As long as you get a transaction fee in your pocket, you don't care from whom you receive it.
Same generic answer. Are you a bot?
There are lots of apps with two way sync into quickbooks that do this really well. Seems tho that lots of users are stuck in the weeds with the belief that intuit payments is the only tool in the shed tho.
if it auto apples surcharge and auto applies and closes invoice … why wouldn’t someone spend 30 seconds to batch send invoices from a second webpage?
we had a client implement surcharge, did 800k/mo in cc
saving 300k+ a year.
happy to help anyone out who reads this.
Only 3 states it’s not illegal MA CT PR.
there are lots of cc compliance factors with debit vs credit.
other tools have accomplished this with quickbooks 2 way sync integration.
make invoice in quickbooks
open app
click send
customer pays via check or cc
payment is reconciled in QB and surcharge is added to invoice if applicable.
easy breezy
Please let me know what are the names of these 3rd party apps that can do this function.
Hello there, abuckson
We're unable to provide a specific recommendation for a third-party application. Still, I'll ensure you'll find an application you need for you and your business.
We can go directly to the QuickBooks App Store website. From there, we can look for an app that integrates with QBO. Another option is to find them from the Apps menu within your QBO account.
Find the right apps for your business using our website:
Find the app within your QBO account:
I'm adding this article to further guide you in managing the growth of your business using QBO: QuickBooks Help Articles. It includes topics about account management, bank transactions, vendors, and inventory. We can click the + More topics button to view other selections.
Feel free to post an update if you need further help or need additional assistance. Also, we have helpful contributors in this forum, and I'm always here whenever you need a hand.
Moderators sometimes censor. But one that has worked very well is ChargeZoom.
you in conjunction also would want a new merchant provider and echeck provider so you would end up better there as well.
DM me if you would like to get connected with with one of their better reps.
If you are running a B2B company, you can explore this one
https://affiliates.meliopayments.com/get-paid
I really need there to be a field to add a credit card processing fee to my invoices. I'd like to be able to show an invoice total price for paying by checks/cash and an invoice price for credit card/paypal that shows the invoice price with the 3% processing fee. My customer/client can choose which invoice total they'd like to pay.
is there an update for this yet?
I would like to give clients the option to pay invoices using their credit cards however without the availability to automatically charge the clients the merchant fees should they choose to do so then I don't believe we can use this service.
I've been trying to figure out the same thing. Have you found any solutions?
QB Payments doesn't offer this option yet. Consider having a third party payment processor to integrate with QB.
Ok, I have a question. So I do the quickbooks merchant account think, so I can accept credit card payment or whatever. I do the match as qb's said. add 3.5% plus .30 cents to each transaction. I assume that is on the taxed amount of the invoice. I could never get my amounts to match theirs when qb's processes the payment.
I found out that qb's is charging me based on the amount of the invoice WITH the fees included, so essentially they are charging me twice? Or at least making money on their own credit card processing fees. I am just trying to pass the fees on to the consumer, not make qb's more millions of dollars in the process. We have quite a few services that are billed via credit card payment and I dont wish to eat all that over a year.
How can I stop qb's from charging fees on their fees?
thanks,
I appreciate you for sharing this experience with us, Advancedcmdotinc.
We've heard your concerns, and I can see the relevance of passing the service fees to your customers when using QuickBooks Payments. Currently, this feature is unavailable in QuickBooks Online (QBO).
However, I can help you share this valuable insight with our software engineers. This way, they might consider your suggestion and include the option of charging the fees to your clients in our future product updates.
Here's how to submit feedback:
In some cases, you may need to refund your customers for the credit card payments they made. For your guide, feel free to visit this article: Void or refund customer payments in QuickBooks Online. It contains detailed information on how to give partial refunds to ensure that your accounting stays accurate.
Please know that I'm a few clicks away if you have further clarifications about receiving payments. The Community is always here to entertain your concerns. Have a great day.
How do I work with QuickBooks /Intuit to not charge my company and bank for the credit card fees? Does this change the process of Intuit accepting charge cards, other the not collecting service fees?
Linda
Thanks for following along with the thread, @surfsidehoa.
At this time, QuickBooks will charge you a fee for credit card processing. You can always check the QuickBooks Payments website for the latest processing fee rates and pricing.
For now, I've included a screenshot of our current fees below for your reference.
Please let me know if you have any questions or concerns. Take care!
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