How to account for QuickBooks Credit Card processing fees

When you receive money from your customers on goods sold or services rendered via credit card to the tune of N2,151.45 and your credit card merchant transfers N2000 into your account, would you recognize the N2,151.45 or N2000?

The N151.45 is credit card fees deducted by your merchant.

If you pick N2,151.45 that means you are not sincere to yourself as a business owner. What if you pick N2000, your account receivable will still have N151.45 balance when in actual sense, your customer has paid all outstanding balances.

As a business owner who wants to track his business finance accurately, which of these accounting transaction recognition would you choose?

The best way to handle credit card processing fees in QuickBooks is to receive the N2, 151.45 as shown below:

See tutorial on how to receive payment from customers

Once you receive the payment of N2,151.45, go to deposit funds to pay the money into your bank as shown below:

The strategy is to accept the N2,151.45 as payment received from customers, record N151.45 as Cash back into Credit Card Fees account and pay the balance received into your bank account.