If you are a business person or any individual associated with any accounting firm, then you must be aware of bookkeeping and its benefits. This is a tool that is developed by Intuit. QuickBooks is used for digital bookkeeping, accounting, and maintaining the records of your transactions. So, if you are here to know the QuickBooks credit card payment fees from its clients’ accounts, you are at the right place. Here you know the charges and QuickBooks credit card fee, and processing fees.
This article will give you an idea about what does QuickBooks charge for credit card processing, and how much does QuickBooks charge for credit card payments. You can check Intuit credit card processing fees and all the information about QuickBooks credit card fee below..
What Is The QuickBooks Credit Card Fee?
Whenever you perform any transactions via your QuickBooks account, you have to pay a charge that is called a QuickBooks credit card(processing) fee. It is a sort of service fee charged by QuickBooks Online. Simply put, the QuickBooks online credit card Fee is the payment received, inclusive of the cost of all the services, when making payment via credit card.
Using the credit card payment method not only provides you with monetary aid in advance but also easier to track payment transactions and activities. This feature is desirable and makes QuickBooks fulfill the need of the hour. Apart from these services, QuickBooks also provides a credit card processing service. Utilizing this service, any business can use QuickBooks services for credit card payment processing for its services or business.
Different Plans/Subscriptions Available For QuickBooks Credit Card Fee
QuickBooks Online credit card fee allows and gives customized options to clients with modifiable accounts as per their needs. According to the business size, expenses, transactions, and demands, one can opt for different ways/ methods. These are explained further in this article, with the details of the QuickBooks Credit Card Fees. Here are the options available, according to which a specified percentage of the entire transaction is charged.
A. In Swipe Method
If you are willing to pay with the swipe method only, then the fee would be 2.4 percent of the total amount of the transaction + 25 cents/ $0.25 per transaction. Moreover, a monthly plan also gives the option to pay 1.6 percent of the total amount + 25 cents/ $0.25 per transaction.
B. Invoiced
In case your business finds Invoiced way favorable, then QuickBooks will charge 2.9 percent of the transaction + 25 cents/ $0.25 per transaction.
C. Keyed Credit Cards
In the Keyed credit cards payment option, the fee will be 3.4% of the transaction + 25 cents per transaction.
These charges are inclusive of payment card industry compliance fees, chargeback fees, assessment fees, interchange fees, and annual account fees. The lowest amount charged in swiped for one of all three options. It is secure because to information provided by customers is fetched instantly. Merchants do not have trouble with detail verification, as it is in person. Also, one can minimize the QuickBooks credit card processing fee by utilizing the QuickBooks payment processing services.
How To Add A Credit Card In QuickBooks
QuickBooks Online accounts provide the facilities with the options of Visa, American Express, and Master credit cards. To add any one of these cards, some steps are to be followed. You can also edit cards and other details using these steps. Let’s see the step-by-step procedure to add and edit your credit card for transactions and payments.
Steps To Add A New Credit Card To Your QuickBooks Accounts
- Open the Gear icon by tapping it and then open it.
- Scroll to the ‘all list’ option and then click on the Payment method list.
- To add a new card, click on the Add New details as asked, and finally, save it.
Steps To Edit Your Credit Card in Your QuickBooks Accounts.
Initially, follow the same steps as adding a new credit card, and then click on edit details. However, the steps are given below.
- Open the Gear icon by tapping it and then open it.
- Scroll to the ‘all list’ option and then click on the Payment method list.
- Then click on the existing card and edit your details.
How To Record QuickBooks Credit Card Processing Fee?
When managing business finance, every transaction will count, including the credit card processing fee. Failing to record these fees in QuickBooks can lead to inaccurate financial statements and reporting errors. QuickBooks provides many ways to record these transactions.
In this, we will guide you through three types of recording credit card processing fees in QuickBooks via the Get Paid & Pay tab, the Expense tab, and manual entry.
Why is Recording Credit Card Processing Fees Important?
Credit card fees are a standard business expense. If not recorded, they can
- Misreport your income
- Impact your profit margins
- Cause reconciliation issues with merchant and bank accounts
- Causes compliance and tax problems
To be correctly accounted for, these fees need to be logged consistently and accurately.
Method 1: Record with Get Paid and Pay option
QuickBooks’ Get Paid and Pay features assist with handling income and expenses, including merchant processing fees. Here are the step-by-step instructions:
- Open QuickBooks.
- From the left navigation panel, click Get Paid & Pay.
- Click Products and Services.
- Click New, then select Service.
- Name the service something like Credit Card Processing Fee.
- Assign the appropriate Expense Account (i.e., Bank Charges or Credit Card Fees).
- Click Save and Close.
Method 2: Record as an Expense
Credit card fees are a business expense and can be simply recorded using the expense feature of QuickBooks. Here are the steps
- Open QuickBooks and navigate to the left panel.
- Click the + New icon.
- Select Expense under the Vendors section.
- Enter the Payee ID (e.g., your merchant provider).
- Choose the Payment Account that was utilized for the fee.
- Select Payment Method
- Under the Category, choose the Expense Account (e.g., Credit Card Fees).
- Enter the Total Amount of the fee.
- Set the correct date.
- Click Save and Close.
Method 3: Manually Record via Invoice and Bank Deposit
If you prefer tracking manually or need to cross-check information, QuickBooks supports manual entry via invoices and deposits.
Apply Payment and Fee:
- Go to the left panel and click the + New button.
- Choose Invoice and enter the full amount paid before fees.
- Save the invoice.
- Go back to + New and choose Receive Payment.
- Associate the payment with the invoice.
- On Deposit to, select Undeposited Funds.
- Click Save and Close.
Record the Fee by Bank Deposit:
- Click + New and select Bank Deposit.
- In the Select the Payments Included in this Deposit section, mark the received payment.
- Scroll down to the Add Funds to This Deposit section.
- In the Received From field, type your payment processor’s name.
- Under Account, select the expense account for fees (e.g., Credit Card Fees).
- Input the fee amount as a negative (e.g., -$2.75).
- Click Save and Close.
Pros and Cons Of Using QuickBooks Credit Card Processing Services
QuickBooks records each payment done for your business, including the charges paid and fees charged, even for using the QuickBooks Credit Card processing Fees or payment service. However, like any other processing system, sometimes the digital structure does not perform well, which can create problems and issues in tallying the balance. Some pros and cons of QuickBooks Credit Card Processing Services are given in this article to give a complete idea.
Pros
- One of the most useful benefits of using this software is its feature of immediately recording business transaction data.
- This provides the benefit of a discount of up to 40 percent in case your business requirement is to pay more than 7500 US dollars monthly.
- The facility of automatic saving and recording of each transaction and payment, including extra or associated charges, helps with the maintenance of comprehensive records.
- It is a more prevalent software, hence knowledge about using it has become general, and the information that results in learning the skill related to this software is easier.
Cons
- Sometimes few errors occur, like Error 404 during transactions, which delays the payment service.
- Due to a technical issue on the server end, the unavailability of QuickBooks Online occurs.
- The website portal not working is also a barrier to smooth working and seamless services
- Unexpected Interruptions occur whenever login sessions expire.
- If your business is small, then it might not be suitable for you as it incurs a relatively higher cost.
Conclusion
This article is about the QuickBooks credit card fee, discussing all the available options and subscription charges. In almost every business, credit expenses are a significant portion of the total expenditure. By know, QuickBooks credit card fee can be beneficial for small-sized businesses. You can check the Intuit credit card fees and the QuickBooks credit card fee in this article. QuickBooks records and history data are vital to accessing your balance sheet or correcting any discrepancies. QuickBooks saves the transaction/payment history in real time whenever your credit card is used via your QuickBooks online account.
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