How to Record Credit Card Fee in QuickBooks online

Do you know how to Record Credit Card Fee in QuickBooks online. Credit card processing fees in QuickBooks refer to the charges incurred when accepting credit card payments from customers. QuickBooks provides tools and features to help businesses manage and account for these fees in their financial records.

To record credit card processing fees in QuickBooks Online, you can follow these steps

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 "Vendors" 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

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

Step 4: Reconcile Bank Accounts

1. Regularly reconcile your bank accounts to ensure that the credit card processing fees and deposits are accurately recorded.
2. Match the transactions in your bank statement with the corresponding entries in QuickBooks Online, including the fees and deposits related to credit card processing.

By following these steps, you can effectively record credit card processing fees in QuickBooks Online. This allows you to maintain accurate financial records and have a clear understanding of your business expenses.