Credit/Debit card processing fees

Accounting
1

Being new to Quick File I am still finding my way around. Once a month we receive a invoice from the company who process our credit/debit cards.
My question is under what default purchase category should I use when setting up this supplier.

2

I use ā€œbank chargesā€ for my card processing fees (which donā€™t attract VAT), and ā€œequipment hireā€ for the card terminal rental (which they itemise separately on the invoice at 20% VAT).

3

Thanks makes sense, thanks

4

As per the above reply, I use ā€˜Equipment Hireā€™ for the terminal rental, but after some research, am now recording card payment processing fees as ā€˜Merchant Account Feesā€™, a category I added to Quickfile. This is because as a sole trader using the ā€˜cash basisā€™, there is a maximum allowance of Ā£500.00 in an accounting year for actual bank charges.

5

Hi, could you tell me please the reporting code you used for the Merchant Account Fees? Thanks!

6

I would guess that he just used the next available custom code.

7

Hi Sallyjane,

On the Chart Of Nominal Accounts, I clicked to enter a new account in the ā€˜Overheadsā€™ section, which I belive to be the correct category, and set up the category ā€˜Merchant Account Feesā€™. The system automatically allocates a reporting code - in this instance 8206.

Hope this helps.

John

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