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Credit/Debit card processing fees


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.


I use “bank charges” for my card processing fees (which don’t attract VAT), and “equipment hire” for the card terminal rental (which they itemise separately on the invoice at 20% VAT).


Thanks makes sense, thanks


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