How To Apply Credit Card Fees in QuickBooks

Fees for taking credit card payments with InvoiceASAP Payments are expenses to your business, but they are also recorded in QuickBooks as income.

Assume you have an invoice for $100.00 and you charge your customers service fees when they pay with a credit card.  

When your customer pays this invoice, a fee of $3.15, for a total invoice amount of $103.15.
The Service Fee of $3.15 is added to the invoice as a line item.
Your customer pays you $103.15.
When you sync from InvoiceASAP to QuickBooks, we sync the full invoice amount of $103.15 and the payment amount of $103.15.
But only $100 will be deposited into your bank account -- the amount of the invoice less the service fee.

By default, payments are synced to Undeposited Funds.
When you record the deposit, you will add a new line item to the deposit with a negative amount for the service fee.
In this example, your deposit amount will be $103.15.
But you will add a new item on the deposit form for -3.09, and apply this to the expense account you want to use for credit card fee.
Then the total amount of the deposit will be $100, which matches what was deposited into your bank account.

Here is a link to a video on YouTube that shows how to do this.
InvoiceASAP has no affiliation with this YouTube account.
We are including this in the article because it quickly, clearly & concisely shows how to apply credit card fees in QuickBooks Online:
> QuickBooks Tip: How to Record Fees from Credit Cards

If you are not familiar with Undeposited Funds in QuickBooks, here is a support article from Intuit that may help:
> How Undeposited Funds Works




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