QuickBooks Credit Card Processing Fee: A Complete Guide

 

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We are all aware of what a credit card is and how it works. It is a card that your bank issues to you. It allows you to borrow funds from the bank at a specified interest rate. In QuickBooks, you can connect your bank account and your credit cards and all the transactions will be recorded automatically. Furthermore, you can even make payments from QuickBooks using a debit cards, bank transfers, credit cards, etc. When you get paid or pay using credit cards, you get charged a certain fee known as QuickBooks credit card processing fee.

In this article, we’ll discuss what is QuickBooks credit card processing fee and everything related to it. So, without stretching it any further, let’s get started.

QuickBooks Credit Card

What is QuickBooks Credit Card Processing Fee?

Using credit cards to complete any payment in QuickBooks, makes the work easier and simpler. However, most of the users are unaware of the fact that not only in QuickBooks but all over, when you use your credit card for payments, a certain fee is charged. It is called the QuickBooks credit card processing fee. The charges of QuickBooks fee for credit card processing is a specified percentage of the entire transaction. It is not only necessary to pay these charges but also to record them. 

Using QuickBooks for credit card payments will be a wise choice as it will be much easier to record them and therefore maintain your books. You should know where each penny goes, therefore QuickBooks credit card processing fee calculator is your best shot.

How Much Is QuickBooks Credit Card Processing Fee?

Before we learn about the QuickBooks credit card processing fee, you must be aware of the fact that QuickBooks allows three different ways to pay using a credit card. The QuickBooks credit card processing fee calculator calculates different processing fee for different methods of payments.

  • Credit Card Swiped: QuickBooks online will charge 2.4% of the entire transaction plus $1.92. The pay-as-you-go plan of QuickBooks desktop will charge a processing fee equal to 2.4% plus $2.3. Moreover, the monthly plan will be charging 1.6% + $2.3. 
  • Credit Card Online Invoice: You’ll have to pay 2.9% + $1.92 total of the processing fee on QuickBooks online credit card payment. The pay-as-you-go plan charges 3.5% of the entire transaction and $2.3 additionally. Finally, the monthly plan of QuickBooks desktop charges 3.3% plus $2.3 processing fee on credit card payments.
  • Credit Card Keyed: QuickBooks online will charge 3.4% of the entire transaction plus $1.92 when you pay via credit card. The QuickBooks credit card processing fee for pay as you go plan is 3.5% + $2.3 and the monthly plan is 3.5% + $2.3.
QuickBooks Credit Card Processing Fee

QuickBooks Credit Card Processing Fee: Advantages And Disadvantages

Advantages: 

  • You can easily pay and the QuickBooks credit card payments record automatically in order to maintain your books. Therefore, using QuickBooks for payments is a convenient option.
  • It is your one-step solution as it accepts all kinds of payments and you can make payments through different methods without any fuss.
  • Using QuickBooks is a familiar option for you and your team. 

Disadvantages:

  • Sometimes while making payments you get glitches or QuickBooks errors. This can abrupt the entire payment process leading it to get canceled.
  • If QuickBooks is not updated, you’ll face a lot of downtimes. So, make sure you will update QuickBooks software.
  • QuickBooks server processing is slow due to several functions going through at once.
  • The QuickBooks credit card processing fee is high.

How To Record QuickBooks Credit Card Processing Fee?

You’ll need to record where each and every penny goes in order to maintain accurate books. Therefore missing out on recording QuickBooks fee for credit card processing can lead to improper book tallying. The best choice is that you record loans or charges. There are two methods by which you can record QuickBooks credit card processing fee calculator results. Let’s look at both of them one by one.

Method 1: Using the Get Paid And Pay Option

The get paid and payment option in QuickBooks is the inbuilt feature that records all the charges that you pay or receive in the software. Here’s how you can use this tab to record QuickBooks credit card processing fee:

  • Launch QuickBooks on your system.
  • Go to the left panel.
  • Opt for the get paid and pay option.
  • Next, tap on the product and service tab.
  • Click on new > service.
  • Mention the credit card processing fee under the service option.
  • Select the account by which you will be paying the processing fee for the credit card.
  • Finally, hit save and close.
  • Now all your credit card processing fees will be recorded.

Method 2: Use the Expense Option

As the name suggests, the expense option records all the expenses. QuickBooks credit card processing fee is kind of an expense and therefore you can use the expense report to record the detail also. Here’s how:

  • Initially start QuickBooks software.
  • Go to the left panel.
  • You’ll see a + symbol. Tap on it.
  • Under vendors, select the expensive option.
  • Now, type the payee data.
  • Add the account by which you’ll be paying the charges.
  • Enter the date of payment along with the method. (credit card)
  • Go to the category tab and add the name of the expense account through which the payment will take place.
  • Under the amount option, add the total amount.
  • Finally, hit save and close.

Manually Recording QuickBooks Credit Card Processing Fee 

QuickBooks allows you to enter the QuickBooks fee for credit card processing manually. You get the benefit for self-checking all the data before they are recorded when you opt for the manual method of recording QuickBooks fee for credit card processing. Here’s how you can do this:

Manually Recording QuickBooks Credit Card Processing Fee 
  • In QuickBooks, go to the left panel.
  • Hit the + icon.
  • Tap on invoice.
  • Now type the exact amount that is to be recorded.
  • Move back to the invoice option after saving it.
  • Tap on the receive payment tab.
  • After selecting the correct invoice, navigate to the deposit section.
  • Now tap on undeposited funds.
  • Now accurately add all the information required.
  • Finally hit save and close to record the QuickBooks credit card processing fee calculator outcome.

Another method for manually adding the QuickBooks credit card processing fee is using the bank deposit option. Here’s how:

  • Go to the QuickBooks home screen.
  • Tap on the + icon > bank deposit.
  • Navigate to Select the Payments Included in this Deposit tab.
  • After this, move to Add Funds to this Deposit section.
  • Now go to the Received From option and enter the QuickBooks credit card processing fee.
  • Type credit card fee under the account section.
  • The charges of credit cards should be entered in negatives. 
  • Finally, hit save and close. 

How To Record QuickBooks Credit Card Processing Fee? (Charged From Clients)

Not only the owners and employees will have to pay the credit card fees in QuickBooks but anyone, even the customers who use credit cards for payments will have to pay the charges. Therefore, while creating invoices, you’ll need a QuickBooks credit card processing fee calculator to record the charges in your books and in the invoices as well. More ever, you should always ensure that your clients know how much is QuickBooks credit card processing fee to maintain transparency.

  • Open QuickBooks and go to + icon.
  • In the customers list, select the receive payment option.
  • Add the date on which the QuickBooks credit card processing fee was/is charged.
  • Under the payment method, add the processor of your customer’s credit card.
  • Fill out the reference number and deposit to fields.
  • Finally, hit save and close.

How To Edit/Add Credit Cards In QuickBooks?

You have to add or edit the existing payment methods in QuickBooks sometimes. By default, QuickBooks is set to accept Visa, American Express, and Mastercard credit cards. However, these options can be edited. You can add new credit cards or you can alter the already added ones. Here’s how:

How To Edit/Add Credit Cards In Quickbooks?
  • Tap on the gear icon to open settings.
  • Go to all lists option.
  • Select the payment method list.
  • Tap on new.
  • Add the details like the name of the credit card.
  • From the payment method type, select credit card.
  • Lastly, hit save to add a new payment method.

Conclusion

The main focus of any business should be to maintain accurate books. Therefore, it is crucial to take into account even the smallest expense or income. Having said that, recording QuickBooks credit card processing fee is important to balance out your books. However, most of the users are unaware that a thing like credit card fees exists. Be that as it may, you need to make your team, employees, and your client aware of what is QuickBooks credit card processing fee and how much is QuickBooks credit card processing fee. 

This article is a perfect solution that will help out in explaining everything about credit card processing fees in QuickBooks. We have well-researched and discussed each and every aspect of QuickBooks payments and QuickBooks credit card processing fees.

Frequently Asked Questions

Q.1: How do I add credit card processing fees in QuickBooks?

  • Launch QuickBooks and go to the left panel.
  • Select the get paid and pay options.
  • Tap on the product and service > new > service.
  • Mention the credit card processing fee under the service option.
  • Select the account by which you will be paying the processing fee for the credit card.
  • Finally, hit save and close.

Q.2: Can I pass on credit card fees to customers?

A: Merchants can easily pass credit card fees to customers with 4 main methods: 

  • Minimum purchase requirements. 
  • Credit card surcharging
  • Convenience fees.
  • Cash discounting

Q.3: How do you explain credit card processing fees?

A: A credit card processing fee is a necessary charge that everyone who chooses to pay using a credit card has to pay. The charges vary depending on the type of credit card and the bank.

Q.4: What is a reasonable credit card processing fee?

A: The ideal credit card processing fee amounts to 1.5% to 3.5% of the entire transaction. Therefore for a sale of $100, you will have to pay approximately $1.5 to $3.5 as a credit card fee.

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