How to Record Credit Card Fees for QuickBooks?
Most people use credit cards for their business or personal use. These cards are easy and convenient to use and are generally given by the bank. An individual can take a loan from the bank at a calculated interest rate. The bank accounts and credit cards may be connected with QuickBooks software and all bank transactions are logged immediately. A person can make payments in this software with the help of a credit card, debit card, etc. Now, we will describe a brief overview of Credit Card Fees for QuickBooks with their benefits and the important methods to record credit card fees in QuickBooks software.
Brief Overview of Credit Card Fees for QuickBooks
When an individual is charged a fee while receiving payment or buying an item with the help of a credit card, then it is called a QuickBooks credit card fee. All services cost used in transactions identify the payment from the credit card. Processors, merchant service providers, card associations, and issuing banks can pay fees through credit cards.
Several credit card options are available on Quickbooks desktop in which each of them has different fee structures. It depends on the transaction type, the services of Quickbooks, or the presence of a credit card in the software.
How much does QuickBooks charge for credit card payments?
The Quickbooks software can process payments with the help of different payment methods:
- Swiped payments: An individual gets charged a 2.4% fee plus $ 1.92 in this payment method through QuickBooks software.
- Invoice payment: A 2.9% fee + $ 1.92 is charged by the QuickBooks desktop.
- Keyed-in transactions: A person can enter the card details manually in he or she gets charged by 3.4% fee per transaction from the QuickBooks software.
- ACH payment: This type of payment method charges a 1% fee on QuickBooks desktop. The fund is transferred directly to the bank.
Steps to Record Credit Card Fees for QuickBooks
An individual must track the record of how much money he or she can spend to keep correct accounting and bookkeeping in QuickBooks. The credit card fees that can be recorded in this software are the following:
Selecting Get Paid and Pay Option in QuickBooks
A ‘Get Paid and Pay’ option is a tool that is available on QuickBooks. This tool keeps a record of all the credit card fees including service charges etc.
The steps which an individual is able the record the credit card fees for QuickBooks with the help of this option:
- Step 1: Open the QuickBooks on your computer. If it is not available on this device then install it.
- Step 2: Go to the left panel on the QuickBooks desktop.
- Step 3: After going to the left panel, the ‘Get Paid and Pay’ option in the navigation bar. Please click on that option.
- Step 4: After clicking on the ‘Get Paid and Pay’ option, go to products and services.
- Step 5: Choose the new option and Click on Service.
- Step 6: The information on credit card processing costs is to be mentioned in the service option.
- Step 7: Select an account in which an individual wants to pay a processing charge of a credit card.
- Step 8: After that, click on Save and then Close.
The QuickBooks software will show the details of credit card processing fees.
Choose the expenditure option in QuickBooks
- Step 1: Open the QuickBooks software and go to its left panel.
- Step 2: After going to the left panel, click on the plus sign which is available on the QuickBooks Desktop.
- Step 3: Go to the vendor option and then select the priciest option in the QuickBooks software.
- Step 4: After choosing the priciest option, type the payee information.
- Step 5: Add an account for the payment for which an individual can make the charges of the credit card fees.
- Step 6: After adding an account, add the payment method and date of the credit card.
- Step 7: After the payment method and date are added, the name of the expense account gets added which is available in the category option in QuickBooks software.
- Step 8: After that, an individual can add some amount which is available below the amount option.
What are the benefits of Using Credit Cards in QuickBooks?
There are several benefits that an individual can use credit cards for paying fees on QuickBooks. These are the following:
- Improvement of Cash Flow: With the QuickBooks software, you can improve cash flow. This program can quickly process payments with credit cards. In this way, an individual can easily manage his or her expenses or investments with a credit card.
- Customer Convenience: Customers are allowed to pay through credit cards in which they easily purchase their products and services which helps to increase sales potentially. Some payment methods such as online invoices, phones, etc, are available for the customers to pay fees through credit card.
- Payment with the help of a mobile device: A person can use mobile phones to accept payment payments with QuickBooks software which is beneficial for his or her business purpose.
- Security Enhancement: A robust security program must have some features such as encryption and compliance with the PCI DSS( Payment Card Industry Data Security Standards) that may used to protect payment information by QuickBooks Software. These features can also help in protecting customers’ data which gives a peaceful mind to you and your clients.
- Accounting Integration: The transactions of credit cards are automatically linked with individual and public accounting records on the QuickBooks desktop. This helps minimize errors, decreases manual data entry requirements, and allows a person to complete all the financial statements on time.
Conclusion
This blog describes the benefits of credit card fees for QuickBooks and the two different methods to check records on QuickBooks. It is important to check the records of any individual which shows how much money can be spent by him or her after paying bills through credit cards in this software. The processing cost can vary depending on the services and payment methods an individual can use in QuickBooks software.
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