cancel
Showing results for 
Search instead for 
Did you mean: 
Not applicable

How do you add a percentage on the invoice to cover the credit card processing fee? and if it CAN be done, how does it show up in QB?

We are losing money when our members/vendors pay invoices via the merchant account. Need to know if a 3% processing fee can be assessed for invoices that are paid only by credit card. It would automatically need to be added when the credit card info is entered for payment. Can this be done?
Solved
Best answer 12-10-2018

Accepted Solutions
Highlighted
Established Community Backer ***

You would have to create an other charge item, add it to...

You would have to create an other charge item, add it to the invoice an set the amount or rate

as far as legality:
Surcharging for using a CC card is illegal in the following states: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.

You can however offer a discount for cash in those states - except in New York no cash discounts are allowed

New fed laws went into effect in Jan, 2013 allowing surcharges providing the retailer

make customers aware up front that there is a surcharge and how much for using a CC - at the store entrance and at the cash register or if an online store at the first reference to accepting CC for sales

can not use a surcharge for debit cards or prepaid cards

surcharge fees must be itemized on the receipt, in store or online

http://usa.visa.com/personal/using_visa/checkout_fees/index.html

View solution in original post

7 Comments
Highlighted
Established Community Backer ***

You would have to create an other charge item, add it to...

You would have to create an other charge item, add it to the invoice an set the amount or rate

as far as legality:
Surcharging for using a CC card is illegal in the following states: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.

You can however offer a discount for cash in those states - except in New York no cash discounts are allowed

New fed laws went into effect in Jan, 2013 allowing surcharges providing the retailer

make customers aware up front that there is a surcharge and how much for using a CC - at the store entrance and at the cash register or if an online store at the first reference to accepting CC for sales

can not use a surcharge for debit cards or prepaid cards

surcharge fees must be itemized on the receipt, in store or online

http://usa.visa.com/personal/using_visa/checkout_fees/index.html

View solution in original post

Anonymous
Not applicable

I don't know if it can be done automatically...my guess i...

I don't know if it can be done automatically...my guess is no, but you should determine if it is legal in your state to do that.  In many states this practice is illegal.

 
Community Explorer **

Re: You would have to create an other charge item, add it to...

In August of 2018 a Federal Judge in Austin overturned that law for Texas.  It made it all the way to the Supreme Court, they kicked it back down to the State and the judge overturned it claiming it was unconstitutional.

Community Explorer **

Re: Texas Law Regarding Charging Credit Card Surcharge

In August of 2018 a Federal Judge in Austin overturned this law.  The case made it all the way to the Supreme Court. who kicked it back down to the state.  At that point the judge overturned it saying it was unconstitutional.

Community Contributor **

Re: You would have to create an other charge item, add it to...

Creating a separate line item places the amount into sales income on the P & L.  Do you know how to avoid this?

QuickBooks Team

Re: You would have to create an other charge item, add it to...

Hi bvindas,

 

We can change the affected account for the charge item. Let's make sure it's not an income account. You can follow these steps on how to change it:

  1. Go to Sales tab and select the Products and Services.
  2. Locate the charge item you've created. Then, click on Edit.
  3. Change the Income account.
  4. Click on Save and close.

If it's your expense, you'll want to change it to an Expense account. Additionally, I'd recommend to seek help from an accounting experts. They can guide you on how to handle credit card processing fees and the proper way to record it. They can also advise you on what account should be use.

 

I'll be glad to work with you again. 

Community Contributor **

Re: You would have to create an other charge item, add it to...

What account should it be changed to?

Need to get in touch?

Contact us