How to Record Credit Card Processing Fees in QuickBooks Online

Credit card processing fees in QuickBooks refer to the charges incurred when accepting credit card payments from customers. These fees are typically assessed by payment processors or merchant services providers and are a cost of doing business. Here, We will talk about how to Record Credit Card Processing Fees in QuickBooks Online.

Step 1: Set up a Credit Card Processing Fee Account

1. Sign in to your QuickBooks Online account.
2. Go to the Gear icon in the top-right corner and select “Chart of Accounts.”
3. Click on the “New” button to create a new account.
4. Choose the appropriate account type, such as “Expense” or “Other Expense.”
5. Enter a name for the account, like “Credit Card Processing Fees.”
6. Save the account.

Step 2: Record the Credit Card Processing Fees

1. Go to the “+” icon in the top-right corner and select “Expense” under the “Suppliers” section.
2. In the “Choose a payee” field, select the vendor or payment processor associated with the credit card processing fees.
3. Enter the payment date, payment method, and payment account.
4. Under the “Category” section, choose the account you created for credit card processing fees (“Credit Card Processing Fees”).
5. Enter the amount of the fee in the “Amount” field.
6. Save the expense.

Step 3: Categorize Credit Card Deposits

1. Go to the “Banking” menu and select “Banking” from the drop-down list.
2. Locate the bank transaction that represents the deposit from credit card payments.
3. Check the transaction and click on the “Categorize” button.
4. In the “Category” column, choose the appropriate income account for the sales or services associated with the credit card payments.
5. Save the categorization.