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How to record credit card processing fee properly.

Forum|Forum|7 years ago
December 11, 2018
6 replies
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I am still learning to use my Quickbooks 2008. How do I account for a fee for accepting credit card from a customer to apply to their invoice. Example - Inv for $99, $97 applied to bank account, how do I get the $2 into the expense? I have read the other answers and I don't have an option to add deposit in the 'make deposit' screen. I am also unable to add expense to invoice.

QuickBooks Desktop

Best answer by arkvalleyinfo

Here's a video that shows how to do it:

I hope this is helpful.

A

arkvalleyinfoAuthor

My Quickbooks Record Deposit screen doesn't look like any of these examples I have seen. I believe I have an older version but as you said they all should work. I would love to upload a screen shot but your Q&A doesn't give me that option. Possibly there is a help line of some sort that could assist me?

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arkvalleyinfoAuthor

If you post your reply as an answer instead of a comment, then you can attach a screen shot.

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arkvalleyinfoAuthorAnswer

Here's a video that shows how to do it:

I hope this is helpful.

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arkvalleyinfoAuthor

This video is very helpful. How do I record a refund when I issued the refund through Square while accounting for the refund of the fee to myself and the original amount to the customer? For example, Bob paid $100 to me and I was charged $2.75 for a credit card fee, so the deposit was $97.25 to my bank account. One week later I had to refund Bob $100. $100 was refunded via my checking account (through Square) and because Square refunded me the original credit card fee of $2.75, they only took $97.25 out of my checking account. The Quickbooks deposit window won't allow me to enter the +2.75 to account for Square refunding me the credit card fee. Is there a proper way to enter this refund without having to do a journal entry? Hope that makes sense!

S

SkinnyRaven

Everyone of the desktop products allow multiple line items in a deposit. Other than the deposit option you setup a bank type account in your chart of accounts for credid card payments. Make your deposits here, write checks from this account for the processing fees, and transfer funds from this account to your bank account when funding status is known.

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arkvalleyinfoAuthor

This is my screen shot of the Record Deposits screen. How can I add another line?

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arkvalleyinfoAuthor

Click OK and add the line in the next screen. Here you're just selecting the payments to deposit.

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pinkgeek1313

I have followed the directions given in the video, but I am now seeing this issue:

1. When I reconcile the payments to my bank account, I am seeing the full amount paid by the customer in my deposits column, rather than what was deposited to my account (customer paid amount less the processing fee). I do not have the fee listed in the withdrawals column to offset the incorrect deposit amount.

Keep in mind, my bank does not connect to Quickbooks. So, I am responsible for adding everything manually.

Thanks for any help!

G

GraceC

Thanks for joining this thread, @pinkgeek1313.

You can create an expense to record your processing fees that included the payment amount. Let me guide you how.

Go to Banking.
Click the Write Checks.
Under Account click the drop-down menu.
Locate the Processing Fee, then enter the amount.
Hit Save and Close.

Please see the screenshot below:

To learn more about your bank feeds and also for the bank transactions such as reconciling your bank account, you can visit our QuickBooks Desktop Help Article for the guidance.

Leave a comment if you need anything else. I’m more than happy to help. Have a good one!

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