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croyce
Level 1

We started to charge a credit card fee and I am not sure where I should set up that account.

We use our bank's credit card machine and we started charging a processing fee. I need to set up an account on QB where the fee needs to go into. Should it be an offset account to our bank account or an other income account?
3 Comments 3
Rainflurry
Level 13

We started to charge a credit card fee and I am not sure where I should set up that account.

@croyce 

 

It's an income account, not other income IMO.  Other income refers to income that is not related to the main operation of the business.  You may have checked this but many states outlaw the practice of charging processing fees on credit card transactions so make sure yours isn't one of them. 

RoseJillB
QuickBooks Team

We started to charge a credit card fee and I am not sure where I should set up that account.

Welcome to the Community, @croyce.

 

Rainflurry is correct about recording your transactions into an income account. With this, I’ll help you about creating an account in the Chart of Account (COA) to start adding these transactions.

 

Here’s how:

 

  1. From the left navigation pane, select the Accounting menu.
  2. Select the Chart of Accounts tab, and click the New button.
  3. From the Account type, select Income.
  4. In the Save account under section, select the option where you want to post the transactions.
  5. Enter the necessary details for the Account NameDescription, and Starting date and opening balance.
  6. Lastly, click Save.

 

Once done, browse these resources for your reference when categorizing transactions and reconciling your account.

 

Feel free to add a comment if you have more questions about setting up an account. The Community always has your back. Have a great day!

croyce
Level 1

We started to charge a credit card fee and I am not sure where I should set up that account.

Thank you and our state started allowing processing fees as of this year. 

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