Refund and payemnt

Hi jgelectric,

Welcome to the UK Community for QuickBooks Online.

This is a question that sounds like i could be answered utilizing an undeposited funds account to represent the card processing company.

This way, it allows you to accurately represent the refunds out, against the payments in for that day, and you'll then be able to create a transaction to show the money leaving your bank, going to the card processing company.

Depending on that particular days payments in or refunds out, you'll have either a positive balance and so a payment into your bank, or a negative balance and a payment out of your bank, which you can accurately match to your banking screen.

When you create the transactions for that day, instead of selecting bank account as the account it goes too, select them as undeposited funds.

You then use the deposit for a payment into bank or Cheque/expense for money out of the bank, selecting the undeposited funds account to link with the bank account at this point.

See these links:
 

https://community.intuit.com/articles/1251574-what-are-undeposited-funds

https://community.intuit.com/articles/1182163-use-undeposited-funds-to-record-daily-sales

It's worth noting that alternatively, you can create an asset/bank account and call it "Card Processing Company", and then use "Transfers" for the money into & out of that bank.

Always check with an accountant if they are happy with you using an Undeposited Funds account in your books.

Hope this helps,

Thanks,