Accounting for Credit Card Charges

How-to
1

I recently created an account with IntuitPay to allow me to take credit card payments over the phone. I log on to their website and take the payment. I’m wanting to know how I account for this in QF.

I’ve only taken one payment so far - a sale of £277.00, which gave me £269.38 after charges from Intuit. How do I account for this, as the invoice was £277, but I actually received £7.62 less. Not used to this type of transaction as normally just do cash/cheque/BACS for the full amount, ie. no 3rd party charges.

Thanks a million for your help.

2

It’s a similar situation to PayPal. I’ve covered this here, but if you’re unsure, please feel free to ask :smile:
http://community.quickfile.co.uk/t/showing-deductions-for-paypal-fees/2990/2?u=parker1090

3

Ok, I’ve followed that but want to check to be sure I’ve got it right. This is what I did:

  • Paid £277.00 into my QF Intuit Pay bank account
  • Transferred £269.38 to Current Account
  • tagged £7.62 as Bank Charges as payment to supplier called Intuit Pay

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4

The process is pretty much the same for any scenario whereby you’re using a payment processor (e.g. PayPal, GoCardless, Streamline, Stripe etc) to collect funds and receiving the NET, minus a fee. You just treat IntuitPay like another bank account.

Here are the 3 steps:

  • Post all your IntuitPay sales GROSS into the IntuitPay merchant account.
  • When you receive a lump payment from IntuitPay (usually for a bunch of invoices), tag this as a transfer from the IntuitPay merchant account to your current account.
  • At the end of the month the account will be in credit proportionate to the fees you’ve paid to IntuitPay, enter a money out transaction to bring the IntuitPay account back to zero and tag as a purchase payment to IntuitPay under ‘bank charges’.
2 Likes
5

That looks fine to me :smile:

6

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