How to Record Credit Card Processing Fees in QuickBooks Online/Desktop – Learn The Process

To maintain correct financial reporting and general business health, credit card processing fees must be managed well. Maintaining a clear view of your financial situation is made easier when these fees are accurately recorded in QuickBooks, ensuring that your revenue and expenses are appropriately represented.

So, knowing how to enter these fees into QuickBooks will speed up your accounting procedures, lower error rates, and save time on reconciliations whether you’re an accountant or a small business owner. 

How to record credit card processing fees in QuickBooks Online?

Appropriately classifying credit card processing fees in Quickbooks Online is crucial for precise tracking and reporting of expenses. You can accomplish this by setting up a different expenditure account that is dedicated to credit card processing fees. By doing this, you can make sure that these costs are kept separate from other costs and provide accurate financial records. To find any discrepancies and keep your financial reporting accurate, it’s important that you regularly reconcile your credit card statements with your Quickbooks records. In order to account for Credit Card Processing Fees in Quickbooks, you need to follow the steps:

1. Click on the “ + NEW” button at the top left hand side of the screen.

2. Click on “Invoice” to start the process.
3. Enter the details (customer’s information, products or services, agreed-upon payment terms).

4. Click on Save and Send, once done.

It could be possible that the customer submits the payment for your invoice outside of QuickBooks Online, then follow the below mentioned steps:

1. Find the “Invoices Tab’ and locate the invoice you would like to record a payment for.
2. Choose the Invoice in question and click on “Receive Payment”.
3. Click on the “Deposit To” dropdown and the amount which appears in the payment.
4. You can use the “Undeposited Funds” account if your payment is in transit.

5. Once the payment has been deposited, you can manually record the deposit by creating  a new bank deposit.
6. Choose the payment included in the deposit.

7. Put the information ( account information, description and amount charged) under the “Adds to this deposit” section and an invoice has been created along with the payment processing fee.

How to add the credit card processing fee to your invoices?

To appropriately depict financial transactions and communicate these additional charges to clients in a clear manner, Quickbooks invoices must include credit card fees.

Businesses can make sure that clients are aware of any additional charges by accurately adding credit card fees to Quickbooks invoices. In order to complete this process, the invoice must be updated to reflect the precise costs associated with credit card transactions. You can add the credit card processing fee to your invoices by two ways:

Manually 

1. Go to the “Get paid and pay” tab on the left navigation bar.
2. Select the Product and Services.
3. Click on the New and then choose Service.
4. Put the name of the service item.
5. Choose the account that you want to use to track the processing fees.
6. Click on Save and close, once you’re done.

Using third party app

1. Sign in to your QuickBooks Online Company account.
2. Click on the Apps Tab.
3. Enter the name of the app you want to integrate with your QuickBooks Online account.
4. Click on the search icon.

How to charge a credit card processing fee to a customer invoice ?

Setting up credit card processing fees in Quickbooks requires careful navigation, which is crucial for business owners. Here are the steps on how to charge the credit card processing fees to the customer by first creating a service item and then manually adding it as a line item to their invoice.

1. Click on the Sales option and then select Product and Service.
2. Click on the New and then choose Service.
3. Put the name of the service item.
4. Choose the account you want to  use to track the processing fees under the Income account drop- down.
5. Click on Save and Close, once done.

When creating an invoice or using the existing ones, you can add it by the below mentioned steps:

1. Create a new or open the customer’s invoice.
2. Select the fee item you have created on the Product / Service dropdown.
3. You can add a note about the fee, under the Message on invoice section.
4. Click on Save and Close or Save or Send.

How to record credit card processing fees in QuickBooks Desktop?

In order to record the card processing fee manually in QuickBooks Desktop ( QuickBooks Self-employed), kindly follow the steps:

1. Select Transactions, from the sidebar menu.
2. Click on Add Transactions.
3. Put the description and amount of the fee.
4. Select the nearest category that will fit as a processing fee.
5. Click on Save, when it’s done.

How to add the credit card processing fee in QuickBooks Desktop?

• Click on the “+New” tab.
• Select the “Receive Payment” option found below the section of “Customers”.
• Enter the date on which the credit card was charged.
• Put the payment processor of the client’s credit card in the field of “Payment Method” 
• Type the details required in the panels named “Reference Number” and “Deposit To”.
• Click on Save and Close.

Conclusion

To guarantee appropriate representation and tracking of credit card fees within the financial records, entering them into Quickbooks calls for an ordered process. Acquiring proficiency in entering credit card processing fees into QuickBooks facilitates day-to-day financial management along with well-informed decision-making and strategic planning. 

Credit card statements and recorded fees should be regularly reconciled to help find inconsistencies and preserve financial correctness. This allows firms to make well-informed financial decisions based on accurate information.