credit card processing fee deducted from credit card chrges deposit

Hello there, Screenman1. I've got the steps you need on how to record this correctly in QuickBooks Online.

You'll have to create an expense account to post the fee. 

1. From the Accounting menu, select Chart of Accounts.
2. Click New.
3. On the Account Type, choose Expense.
4. On the Detail Type, choose the type of your account.
5. Enter the name of your account.
6. Select Save and Close.

Then, create a service item for the credit card fee and choose the account you've created as an income account. To do so, you can follow these steps:

1. Go to the Sales menu and then select Products and Services.
2. Select Service.
3. Enter the name of your item.
4. Select Save and Close.

Once done, add the fee to the invoice. Here's how:

1. Choose the + New icon and then select Invoices.
2. Select the name of the customer.
3. Enter the necessary information.
4. Add the service item that you've created on the second line.
5. In the Amount field, enter a negative fee amount.
6. Click Save and Close.

To learn more about how credit card processing fee works in QuickBooks, please check out these articles: 

• A quick guide to Credit Card processing
• Accepting credit card payments: The Basics
• Everything You Ever Wanted to Know About Credit Card Fees

Keep me posted if you need more help about the process, Screenman1. I'm ready to help you more.

Here is what I did which is a LOT simpler and achieves the same results.

In my case:

I was charged a $10 fee from my processor for a returned authorization because we accidentally double processed an ACH payment. It only shows up 1 time in Quickbooks so it was NOT a double payment as far as Quickbooks knew.

So, when I made the deposit, which was shorted $10:

Enter (or choose from the previous undeposited funds screen) the customer, the from Acct: Undeposited Funds, then the actual $ amount from the customer(s) that appears in that deposit normally.

After you enter each customer's payment (assuming you had more than 1), then add a new line, but put that it is received from the Processor/vendor. In my case, Helcim,
The From Account: Bank service charges (this is an expense account I previously set up).
Or you could use the same "merchant service expense" account you use to post the fees from that merchant but I wanted to account for it separately so I could easily calculate the % I was paying to process payments through this vendor and not have it skewed by our mistakes and extraordinary fees.

If you don't know why they are charging you that, you could choose your suspense account until you figured out what it was for. Like if it was a chargeback for a previous deposit, which has other consequenses for you and your customer's account.

Check #: You could enter the batch # from the processor associated with the deposit to help you find it later.

Payment method doesn't really matter. Just choose ACH if you have such a thing set up. Or leave it blank.

Then the AMOUNT is the NEGATIVE amount of the amount they took from the deposit. 

This will reduce the actual deposit amount and account for the fee (or whatever the reduction amount was for). This is allowed as long as the total deposit amount is positive. 

In my case, it happened to be a deposit for 1 single customer where we accidentally double processed the payment. We only entered it once in Quickbooks but we double processed it when we went to actually charge them. We don't use Quickbooks directly to process ACH payments. So, they deposited the 1 payment but then took out a $10 fee. So on the first line of my deposit is the customer info and the ORIGINAL charge amount, and then line 2 has the $10 fee (-$10) received from the vendor (Helcim), posted to my Bank Service charge account.

If you run an expense report, it shows up as a deposit but it properly debits this expense account, which is what you want. 

The ONLY drawback to this, is if you go to look under Vendor Center at that actual vendor to see what they are charging you, you won't see that $10 fee because it is essentially a general ledger entry and not related to a charge or a credit. But this okay with me because it is an unusual situation and if I really wanted to, I can always go run an Expense by Vendor detail report and filter just with that Credit card processor vendor name, and you will see all the check charges for their fees and credits if they gave you any, which they usually withdraw separately, along with any of these "deposit" entries you made that increased this expense account.

I hope this helped.