reconciling credit card payment fees

I use Square Credit Card Service to process customer credit card payments.
Example: Invoice amount - $25.00, Amount deposited in my business bank account - $23.97, Square keeps $1.03.
How do I record the fee on the invoice? And reconcile the difference from what is billed on the invoice and what is posted to the business bank account?

Best Answer


  • splasher
    splasher SuperUser ✭✭✭✭✭
    I'd do a split of the deposit.
    Net amount shown in register is $23.97
    First line of split is $25 being applied to the invoice
    Second line of the split is -$1.03 categorized as the "service fee".
    -splasher  using Q since 1996 -  Subscription  -  Win10
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  • 1). I enter the $25.00 via "Receive Payment" pop-up on Customer's Invoice page.
    2). When I reconcile the Business Bank account, I download transactions from the bank.
    3). In the business checking account I split the $25.00 between invoiced amount and "Merchant Fees".
    4). There are now 2 entries in my checking account for the customer and the balance is overstated.
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