How Do I Categorize Credit Card Fees In QuickBooks?

How do I account for credit card fees in QuickBooks?

Let me walk you through the steps:

  • Click on the Plus icon.
  • Select Invoice.
  • Select the name of the Customer.
  • Under the transaction details, enter the original invoice amount.
  • Add another line and enter the credit card processing fee amount and indicate it on the description field.
  • Then Save.

What are QuickBooks Credit Card Fees?


Plan TypeQB Payments Non- MonthlyQB POS Payments
Monthly Fee$0$19.95
Swiped Rate-Credit/ Debit Card2.40%2.30%
Keyed Rate- Credit/ Debit Card/PayPal*3.40%3.20%
Pin Debit RateN/A1.00%

4 more rows

Are credit card fees an expense?

If you have a business credit card and use it for business-related purchases, you can qualify for several different deductions. For one, all interest paid on the card is fully deductible. If you are assessed an annual fee, late charges, or a host of other fees, those are also fully deductible.

How do I categorize credit card interest in QuickBooks?

Here’s how:

  1. Click the Plus icon at the top, then choose Expense.
  2. Select a Payee, then choose Credit Card account for the Payment account.
  3. Enter Payment date and Payment method.
  4. Under the CATEGORY column from the Category details, choose your Interest Expense account.
  5. Enter the amount of the interest charge.