When you're using a third-party service to process credit card payments, you'll notice that the credit card company often deducts a service fee from the total payment. This deduction means the amount deposited into your bank account won't exactly match the original payment amount recorded in QuickBooks Online (QBO). To keep your records accurate and ensure your bank register matches your bank statement, it’s important to record this service fee properly.

Here’s a step-by-step guide to help you accurately enter a bank service fee in QBO:

Recording the Bank Service Fee

Step 1: Enter the Customer Payment

1. Record the Payment:
   • Begin by selecting + New on your QBO dashboard.
   • Choose Receive Payments from the menu.
2. Input Payment Details:
   • Enter all the necessary payment information, including the customer’s details and the amount paid.
3. Apply the Payment to an Invoice:
   • Check the box next to the invoice that the payment should be applied to.
4. Choose the Deposit Account:
   • Select Undeposited Funds as the account where the payment will be temporarily held.
5. Save the Transaction:
   • Click Save and close to record the payment.

Step 2: Deposit the Payment and Record the Bank Service Fee

1. Start a New Bank Deposit:
   • Go back to + New and select Bank Deposits.
   • In the Select Existing Payments section at the top, you should see the payment you just recorded.
2. Select the Payment:
   • Place a checkmark next to the payment that you want to deposit into your bank account.
3. Enter the Bank Service Fee:
   • In the section labeled Add funds to this deposit, enter the service fee charged by the credit card company as a negative amount.
4. Choose the Expense Account:
   • In the Account field, select the expense account you typically use to track bank service fees, such as "Bank Fees" or a similar category.
5. Verify the Deposit Amount:
   • Ensure that the total deposit amount is correct after accounting for the service fee deduction.
6. Save and Close:
   • Once everything is accurate, click Save and close to finalize the deposit.

Additional Tips

• Double-Check Your Entries: Before saving, always double-check the amounts to ensure that the deposit total matches your bank statement after the service fee is subtracted.
• Regular Reconciliation: Make sure to regularly reconcile your accounts to confirm that your bank statements and QBO records are in sync, especially after recording service fees.