American Express paying net of their fees

Hi

Have started to receive some card payments from American Express. Unlike Worldpay, they transfer the funds received from customers to our bank account net of fees. Rather than leave initial invoices partially paid, I have been adding in a line with a negative amount to account for the difference. I can’t imagine this is the correct way to do this. So thought I should ask.

Thanks,
Karl

I’d set up a separate merchant bank account in QuickFile for AmEx payments. Pay the full value of the invoice into the new bank account, and tag the incoming transaction on your current account as a transfer from the merchant account. The remaining balance in the merchant account is now equal to the AmEx fees, so you create a purchase record for those fees (with a supplier called something like “card processing fees”) and pay that purchase from the merchant account to return its balance to zero.

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