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November 26, 2022
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Can i charge the processing fee to the customer

  • November 26, 2022
  • 4 replies
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wanting to charge the customer for the processing fee rather than myself
Best answer by Kevin_C

Let me show you some options to charge your customers for the credit card processing fee in QuickBooks Online (QBO).

 

As stated by Fiat Lux Asia above, QuickBooks Payments doesn't have this feature. As a workaround, you'll want to create a service item for the fees and manually add it to your invoice. Follow these steps to proceed:

 

  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.

 

Once completed, add the processing fee as an additional item to your invoice to charge your customers.

 

Another option is to add negative amounts for the fee together with your transactions when generating the deposit. Here's 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. Select 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. Once everything's good, click Save and close.

 

On the other hand, here's a resource that you can follow when your customer has overpaid you: Handle a customer credit or overpayment in QuickBooks Online. You can use the credit toward an invoice, refund the customer, or enter the overpayment as a tip in QuickBooks.

 

Feel free to post again if you have other QuickBooks concerns. The Community forum is always open to answer your questions. Have a great day!

4 replies

Fiat Lux - ASIA
November 26, 2022

QB Payments does not yet offer this feature. Are you running a B2B or B2C company? You can use a 3rd party solution for this requirement.

Kevin_CAnswer
November 26, 2022

Let me show you some options to charge your customers for the credit card processing fee in QuickBooks Online (QBO).

 

As stated by Fiat Lux Asia above, QuickBooks Payments doesn't have this feature. As a workaround, you'll want to create a service item for the fees and manually add it to your invoice. Follow these steps to proceed:

 

  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.

 

Once completed, add the processing fee as an additional item to your invoice to charge your customers.

 

Another option is to add negative amounts for the fee together with your transactions when generating the deposit. Here's 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. Select 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. Once everything's good, click Save and close.

 

On the other hand, here's a resource that you can follow when your customer has overpaid you: Handle a customer credit or overpayment in QuickBooks Online. You can use the credit toward an invoice, refund the customer, or enter the overpayment as a tip in QuickBooks.

 

Feel free to post again if you have other QuickBooks concerns. The Community forum is always open to answer your questions. Have a great day!

May 14, 2023

All of the Intuit / QB support staff who keep posting that we should add a line item to cover the cc processing fees understand that this isn't an actual workaround for the problem, right?  I can't add a line item that magically disappears if the customer chooses to pay via ACH, nor that magically lowers itself if the customer choose to pay via debit card vs credit card.  The point of this feature is to incentivize customers to pay via ACH versus via CC.  There are also laws in various jurisdictions for charging customers payment processing fees in excess of the actual fees paid.

 

And in case Intuit isn't prioritizing this important feature because they are concerned that it will lower their own revenues, then I say shame on them.  And I hope they recognize that if they don't provide features to the benefit of their customers because they're concerned about short-term revenue impact, I'll remind them that eventually they'll have a larger revenue impact from losing customers altogether to other tools that decide to meet customer needs.  To that end:  I'll note for anyone reading this that Bill.com supports this dynamic surcharge pass-through, and there appear to be good solutions for sync-ing invoices & payments from Bill.com with QBO.  We can't use them because they don't support multi-currency invoicing, but if you're all USD-based, you should definitely take a look & let Intuit/QBO know that you're able & willing to switch away from their Payments solution if they don't implement this functionality.

 

Yes, you'll have to take responsibility for making sure you comply with various jurisdiction's laws around surcharges, but that's what we pay you for, and that's what a proper payments solution should do.

May 17, 2023

I agree.  You know QBO can easily add the feature.  Perhaps, they are too busy adding annoying adds for their other products I do not want, despite a general expectation that since we are paying for QBO our experience should be ad free, or at least give us the option to say we are not interested once and not have to keep being annoyed by the ads.  I am going to have to raise my hourly rates to cover the CC fees I should have the option to pass to the consumer.

June 7, 2023

I own a small music school and the credit card fees are just eating me alive.

It is hopeless to see how it is 2023 an QB doesn't offer this feature.

I asked ChatGPT and this is the answer I got for whatever is worth:

 

If you're looking for an online bookkeeping service that offers the ability to charge credit card processing fees to your customers, there are several options you can consider. Here are a few popular choices:

 

1. Xero: Xero is a cloud-based accounting software that offers a range of features for small businesses. It integrates with various payment gateways and allows you to pass on credit card processing fees to your customers during the checkout process.

 

2. Wave: Wave is a free accounting software that also provides an option to pass credit card fees onto your customers. It supports payment processing through Wave Payments or integrates with third-party payment processors like Stripe.

 

3. Zoho Books: Zoho Books is another comprehensive accounting software that enables you to pass on credit card processing fees to your customers. It integrates with multiple payment gateways, including PayPal and Stripe.

 

4. FreshBooks: FreshBooks is known for its user-friendly interface and invoicing capabilities. It offers the ability to include credit card processing fees as a separate line item on your invoices.

 

5. Square: Square is a popular payment processor that provides integrated point-of-sale solutions for businesses. It allows you to pass on credit card processing fees to your customers during transactions.

 

It's important to note that the availability of certain features may vary depending on your location and the specific pricing plan you choose. Therefore, I recommend researching each option's pricing, features, and compatibility with your business needs before making a decision.

June 14, 2023

As a nonprofit, this would be great.
A lot of other processors offer the "I want to cover the 3% processing fee on my donation" option, via a checkbox on their interfaces.