How to Record Credit Card Sales With 3rd Party Credit Card Processor For QuickBooks?

If you don’t know how to record a customer credit card payment that was accepted through a credit card processor not joined with QuickBooks. To record credit card sales in QuickBooks, you want to record the payment, processing fee, and deposit.

The step-by-step instructions are given here.

In this blog you will learn, how to record customer credit card payments record:

How to Record Customer Credit Card Payments in QuickBooks Online?

Record Receipt of the Credit Card Payment

The very first step is recording the credit card activity that is done by the customer. You already know that the payments can be recorded on outstanding invoices or as sales receipts. This you can do if you have not an issued invoice. Whatever form you fill, complete the form except the payment method, you can do the payment by using the instructions given below:

If you record a credit card payment on an outstanding invoice,

(a) Open the Receive Payment screen by clicking New above the left menu bar.

(b) Then click Receive payment in the first column under Customers.

(c) Complete the Receive Payment screen as normal except for the payment method.

If you haven’t already issued this customer an invoice, then create a sales receipt instead of recording a payment received.

To create a sales receipt,

(i) Click New at the top of the left menu bar

(ii) Then click Sales receipt in the Customers column.

(iii) Complete this form as normal, except for the payment method.

Whether you are using the Payment Received screen or Sales Receipt form, complete the date and payment method section as follows:

    Payment date: Enter the date you charged your customer’s credit card

Payment method: Choose the type of your customer’s credit card.

Reference number: Enter the transaction number assigned by your credit card processor. Then this transaction can be traced from QuickBooks to your processing account in the future if required.

    Deposit to: Make sure that credit card payment is initially deposited to your Undeposited Funds account and not directly to your bank account.

Click the green Save and close button when you have entered all the essential information.

Record Deposits and Fees From Your Credit Card Processor

Sometimes, On a single deposit account many credit card processors takes multiple charges. When you pay the charges, do the mirror deposits again to your undeposited funds.

Match deposits exactly: if you mirror deposits not matching, Then it makes your bank reconciliation hard.

Start the transfer from undeposited Funds by

Click on the New button at the top of the left menu bar.

Choose Bank Deposit in the far-right column.

Account: Click the drop-down box and select the checking account where the credit card processor deposited your funds.

Date: Enter the date your credit card processor deposited the funds.

Payments included: Select the credit card payments your processor included in the current deposit carefully.

However, your processor deducts a processing fee from the deposit, record the fee using a negative amount in the “Add funds to this deposit” section in items D through G:

Received from: Select the name of your credit card processor that is withholding a fee. If not already set up, click Add new to set them up as a vendor.

Account: Choose an expense account such as “Credit Card Processing Fees.” You can click Add new to set up a new expense account.

Payment method: Select Cash as the payment method.

Amount: Enter the amount of the fee as a negative number.

Total Amount: Verify the total amount of the deposit matches the deposit from your credit card processor.

Record Other Credit Card Fees

If your credit card processor charges fees other than those deducted directly from a deposit, record an expense

clicking on New from above the left menu bar.

Choose Expense in the Vendors column:

Take the Screenshot of QuickBooks Online Expense

Payee: Select the name of your credit card processor.

Payment account: Choose the bank account where the expense was withdrawn.

Enter the date the expense was withdrawn.

Payment method: Select cash as the payment method.

Category: Choose an expense account to charge the credit card processing fees.

Amount: Enter the amount of the credit card processing fees.

If you need help for your quick books, you can contact Quickbooks phone number.