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K
krucki
February 2, 2023
Question

How do I charge a customer a merchant fee if they pay by card through quickbooks?

  • February 2, 2023
  • 2 replies
  • 0 views

We just recently set up quickbooks pay. We want to charge the customer 3% only if they pay by credit card through quickbooks. I'm aware that I can create a product/service to tack on a merchant fee but I dont want to do this because we don't know how the customer is going to pay.

2 replies

R
RCV
February 2, 2023

Let me help you charge a customer with the merchant fee paid by card through QuickBooks Online (QBO), krucki.

 

You'll want to create a service item for the fees and manually add it to your invoice. Additionally, you might wish to include this in the default email message you send with invoices. Here's how to create the fee as a service item so you can add a fee with a detailed description to invoices: 

 

  1. Go to the Gear icon, then choose Products and Services.
  2. Click on New, then select Service.
  3. Enter the name of your service item. (Example: Processing Fee).
  4. Select the account you'd use to track the processing fees.
  5. Once done, click Save and Close.

 

If you’ve already sent them their invoice, create an invoice with the service fee. If you haven’t sent them, just make sure to add them before sending the invoice. Here's how: 

 

  1. Go to Get paid & pay or Sales.
  2. Select Invoices.​
  3. Choose the invoice you want to add a service fee.
  4. Tap Edit invoice.
  5. From the Product or service dropdown, select the service fee you created.
  6. In the Amount field, enter the amount of the service fee.
  7. In the Note to customer section, add a note about the fee.
  8. Press Review and send.

 

Another choice is to generate the deposit and include negative amounts for the fee along with your transactions. I'll demonstrate how:

 

  1. From the Bank Deposit window, scroll down to the Add funds to this deposit section.
  2. Enter the fee as a line item.
  3. Choose from whom the fee was received in the Received From section.
  4. Tap Bank Charges from the Account dropdown.
  5. Enter the amount fee as a negative number. For example, if the fee was US $5, enter –5.
  6. Review the deposit total with the bank fee.
  7. Press Save and close.

     

 

Additionally, make sure the appropriate accounts for payments and processing fees are chosen as well. You may refer to these articles:

 

 

 

I'm just one post away if you need assistance with running your invoice and payment reports. The Community forum is always open to answer your questions. Have a great day. 

J
Jaamed
October 30, 2023

But how do you charge the credit card fee at point of check out vs as a separate line item on the invoice?

 

E
Ethel_A12
October 30, 2023

Welcome to the Community, @Jaamed.

 

Adding a credit card processing fee in an invoice and at the point of check out have the same process. You can add the charge as a line item.

 

You can create a service item and manually add them to your invoice or sales receipt.

 

Here's how:

 

  1. Go to Sales, then choose Products and Services.
  2. Click on New, then select Service.
  3. Enter the name of your service item.
  4. Select the account you'd use to track our processing fees.
  5. Once done, click Save and Close.

 

You can then add the item manually to an invoice or sales receipt. Follow the steps provided by my colleague above. You can also choose to add the item in the deposit as a negative amount. Add the fee as an additional item on your invoice every time you charge your customers with the processing fee. 

 

You can browse through the following articles to learn more about credit card processing. From there, you’ll learn about fees, regulations, and requirements that come when you accept credit cards.

 

 

Don't hesitate to click the Reply button below if you need further assistance charging the customer a credit card fee. I'm always here to help. Have a great day.

A
arbormd
December 28, 2023

The main question remains! If we don't know the payment method beforehand? you offer multiple payment options. for example if I do not see them, provide my service then leave the invoice in the mailbox with the qr code they can pay by card or check or bank transfer they could also run into me a couple of houses away and have the card for me to key in. All of these methods incur different fees or none at all. your recommendations/solutions. have me add a fee regardless that could either be to much to little or confusion if they pay by check and should have no fee.

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