How to Add Credit Card Fee to Invoice in QuickBooks Online
Accepting credit card payments is a convenient way for businesses to receive payments from their customers. However, there are fees associated with processing credit card transactions. As a business owner, it is important to account for these fees and ensure that they are properly reflected in your invoices. Here is a step-by-step guide on how to add credit card fees to invoices in QuickBooks Online:
Step 1: Sign in to your QuickBooks Online account and navigate to the Sales tab.
Step 2: Click on the Invoices tab and select the invoice you want to add the credit card fee to, or create a new invoice.
Step 3: In the invoice details section, add the products or services you are invoicing for.
Step 4: To add the credit card fee, click on the “+” button in the last row of the invoice details section.
Step 5: Select “Add New Service” from the drop-down menu.
Step 6: Enter a name for the credit card fee service, such as “Credit Card Processing Fee.”
Step 7: In the “Sales price/rate” field, enter the amount of the fee as a negative value. For example, if the fee is 2.5% of the invoice total, enter -2.5 in this field.
Step 8: Save the invoice.
By following these steps, the credit card fee will be added as a separate line item on your invoice, ensuring that your customer is aware of the additional charge.
Frequently Asked Questions:
1. Why should I add a credit card fee to my invoice?
Adding a credit card fee to your invoice allows you to account for the processing fees associated with accepting credit card payments.
2. Can I add a credit card fee to an existing invoice?
Yes, you can add a credit card fee to an existing invoice by editing the invoice and following the steps outlined above.
3. How do I calculate the credit card fee percentage?
The credit card fee percentage is typically provided by your payment processor. It is usually a percentage of the total invoice amount.
4. Can I add a credit card fee to recurring invoices?
Yes, you can add a credit card fee to recurring invoices by following the same steps outlined above for creating a new invoice.
5. Are credit card fees tax-deductible?
Consult with your tax advisor to determine if credit card fees are tax-deductible for your business.
6. Can I waive the credit card fee for certain customers?
Yes, you can choose to waive the credit card fee for specific customers by removing the fee line item from their invoice.
7. How can I view reports on credit card fees?
QuickBooks Online provides various reports that allow you to track credit card fees, such as the Sales by Product/Service Detail report or the Profit and Loss report.