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How To Handle Merchant Fees In QuickBooks Pro

    Erica Seppala
  • 7 comments
  • Updated on:
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Erica Seppala

Erica Seppala

Expert Analyst & Reviewer at Merchant Maverick
An expert in accounting, finance, and point of sale, Erica has been researching and writing about all things small-business since 2018. Erica's insights into personal and business finance have been cited in numerous publications, including MSN, Real Simple, and Reader's Digest. She is a graduate of Limestone College.
Erica Seppala
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7 Comments

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    Raniah

    Please, can you tell me how to enter a payment in QBD to apply to the invoice that has not been added the Merchant fees to the invoice balance? For example:
    The invoice amount created and sent out to the client is=$100
    And then the client wants to pay the invoice($100) and ($3), merchant fees since he or she pays with a credit card. How I apply the amount of $103 to invoice that amount $100 without leaving $-3 in my account. Thank

      This comment refers to an earlier version of this post and may be outdated.

      Jessica Dinsmore

      Hi Raniah,

      You’ve stumped us on this one! Your best bet would be to contact QuickBooks with your question and see if they can direct you. So sorry we couldn’t help you, but hopefully, QB will be of assistance to you! Best wishes!

        This comment refers to an earlier version of this post and may be outdated.

        Kevin Kelly

        From my reading of the poster’s question it appears to me that they want to know what the Total Transaction (TA) amount is such that the Service Fee (SF) of $100 is not diminished by the Merchant Fee (MF) which for this example is 3% of the TA. Many of us simply absorb the MF as a cost of doing business. However, if I understand the question correctly, the procedure to recover the MF is to divide the SF by .97 giving a TA of about $103.09. The SF won’t be exactly $100 but close. Now, the TA is posted as $103.09, the MF is posted as -3.09 and the SF of $100 is preserved.

          Pooja Koirala

          Hi There,

          After applying these fees in the deposit window. The fees shows up in the merchant account as we have yet to pay this balance. Truth is these fees are deducted directly from our bank account so how should I show that there is no balance to be paid?

            This comment refers to an earlier version of this post and may be outdated.

            Chelsea Krause

            Hi Pooja,

            Great question! I recommend checking out Candus Kampfer’s videos on merchant fees as they will walk you through exactly how merchant fees work in QuickBooks in more detail.

            Best wishes,

            -Chelsea Krause

              This comment refers to an earlier version of this post and may be outdated.

              Rory

              Will this transaction show a negative expense on the P&L?

                This comment refers to an earlier version of this post and may be outdated.

                Chelsea Krause

                Hi Rory,

                Your Merchant Fees won’t show up as negative; they’ll just be listed under “expenses” on the Profit & Loss Statement. So your P&L will look something like this: QuickBooks Merchant Fees

                Hope that helps!

                Best wishes,

                -Chelsea Krause

                  This comment refers to an earlier version of this post and may be outdated.

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