How To Record Credit Card Processing Fees In QuickBooks

When it comes to accepting payments, recording credit card processing fees from merchants like Stripe, Square, and PayPal is essential. Often, high-risk merchants need to pay higher fees compared to those classified as low risk. Getting an accurate picture of these fees can help you improve your accounting process. 

However, those new to QuickBooks might not be sure how the process works. To enter a per transaction or monthly fee, you’ll need to create an expense account called “Merchant Fees” if you haven’t already. You then record these deposits as they occur or use the  “Check Register” function for lump sum fees. 

Recording Credit Card Processing Fees In QuickBooks

Here are some simple steps to help you keep track of transaction fees:

1. Create an expense account called “Merchant Fees”
2. On the home screen, navigate to the “Receive Payments” icon and click on it
3. Choose the relevant customer on the drop-down menu
4. Enter the payment account and payment option
5. Enter any additional information such as the date and reference number 
6. Go back to the home screen and click “Record Deposit”
7. Select the transaction you just created and click OK once the checkmark shows up
8. Select your “Merchant Fees” account 
9. Enter the merchant fee with a negative number, which will be deducted from the total payment 
10. Save and record your deposit 

For lump monthly sums, you’ll need to click on the “Check Register” icon on the home page or go to Banking > Use Register, select the account you’re using to pay for these merchant fees, and enter the total amount. 

Now that you know how to record credit card processing fees on QuickBooks, you’ll be able to get a better picture of your total expenses and income for tax purposes. If you need any more assistance, their support page can give you extra guidance.

For a detailed comparison of processing services and fees for credit cards, read more at Processing Card today.