The QuickBooks credit card payment is a flexible, and fast way to get paid or to make payment easily. But, do you know, there is a processing fee for each transaction? Yes, QuickBooks charge a fee for credit card payment. If you have no idea about this processing fee, then read the article till the end. In this article, we will discuss, what is QuickBooks credit card processing fee, how much does it cost, and how to enter it.
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What is QuickBooks Credit Card Processing Fees
While using a QuickBooks credit card for a payment transaction, the banks and issuers take some charges to process the payment. This charge is called as QuickBooks credit card processing fee. And the fee is always not the same for every transaction. It depends on the type of credit card and issuer.
Remember: Any payment transaction through a credit card can’t be accessed directly. It needs a payment gateway to process. To use the QuickBooks credit card, you need to an account in QuickBooks Merchant. there you can get services like the QuickBooks payment, Go Payment, and Point of Sale.
To Secure Credit Card Processing Transaction
If you want to secure your QuickBooks credit card processing. Then you have to be PCI compliant. If you will not PCI compliant, then there is a possibility for cyber fraud with you and your customer. In such cases, you can face decrease customers or your business.
To become a part of PCI you have to pay $20-$30 per month. That’s why you have to choose the right merchant account for your QuickBooks credit card processing.
How To Enter Credit Card Processing Fee Into QuickBooks
In QuickBooks, you can easily enter or record the credit card processing fees. Here we have given the procedure to add your fee, see how to do it;
Step 1: Set Up Credit Card Function
Before entering the card processing fee, go to the ‘QuickBooks Settings’, and set up the credit card function.
- Visit the menu bar, and select the ‘Chart of Account’ option.
- Click on the ‘Add New’ option, and choose the ‘Credit Card’ option.
- Then click on the ‘Continue’ option.
- Put the Account name, and the Description.
- And add the credit card balance, that you have used before, for the payment.
- But if you don’t know the credit card statement then click on ‘Inner Opening Balances’.
- And then find your statement.
- Now you have to fill out the opening balance, and the date to get a statement.
- Click ‘Ok’ to confirm it.
- Hit the ‘Enter’ key from the keyboard.
- QuickBooks will show you 2 options to choose ‘Yes’, or ‘No’ for saving the file online.
- Select ‘No’.
Step 2: Enter the Credit Card Processing Fee
Follow the steps to enter the credit card processing fee into the QuickBooks;
- Select the ‘Enter credit card charges’ option from the dashboard.
- QuickBooks will show you a form for credit card charges.
- You will see the form for QuickBooks credit card charges
- If you have more than 1 business credit card, then you can enter multiple credit cards.
- Put the vendor name, and select the date from the ‘Calendar’ menu.
- And put the amount in the ‘Amount’ field.
- You can specify a memo if you want to provide detail of what types of expenses.
- Fill out the below table of the memo.
- Click on the Save option, to save all of the changes that you have made till now.
- Then, click on the ‘Close’ option.
- Again go back to the QuickBooks dashboard, and select the ‘Reconcile’ option.
- A popup window will open on your screen.
- Select the ‘Account’ option from the drop-down menu.
- Then provide the charge amount and select the date.
- Choose the Account type from the drop-down menu.
- Click on the ‘Continue’ option.
- Now you can see the various credit card payment list in the credit card payment window.
How Much is QuickBooks Credit Card Processing Fee
Mainly, you need to pay the actual payment processor, but apart from that there are some other couples of transaction fees are available. It mainly includes the interchange fee and assessment fee.
- Interchange Fee: The fee processed by the bank, that issued the credit card is called as Interchange fee. The cost of fee totally depend on the issuer. But, you consider the fee around 1.8% for credit cards, and 0.3% for debit cards.
- Assessment Fee: The fee processed by the credit card issuer, is called as Assessment fee. This fee also vary with the issuer, but can be considered around 0.10% to 0.13%.
So basically, we can’t put a number for the processing fees. Because the fee totally depends on the below points;
- How much payment you are processing in the credit card throuh QuickBooks
- What type of credit card your are using for the pymrnt process
- How you are processing your card (swiping, keying, and etc.)
Here is a rough estimate of the processing fee. Look towards the table to know the approximate value;
|Monthly Fee||ACH Bank Transfer||Credit Card Swiped||Credit Card Online Invoice||Credit Card Keyed|
|QuickBooks Online||None||1% (Max $10)||2.4% + 25 ¢||2.9% + 25 ¢||3.4% + 25 ¢|
|QuickBooks Desktop for “Pay as you go” Plan||$0||$3.00||2.4% + 30 ¢||3.5% + 30 ¢||3.5% + 30 ¢|
|QuickBooks Desktop for “Pay monthly” Plan||$20||$3.00||1.6% + 30 ¢||3.3% + 30 ¢||3.5% + 30 ¢|
It was complete about the QuickBooks credit card processing fee, and its entry process. Hopefully, now you can enter the credit card processing fee in QuickBooks easily. You can contact our certified QuickBooks ProAdvisors through the toll-free number +1-877-355-0435 for any kind of query regarding this processing fee.