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How to deposit Credit Card transactions when not using Intuit’s integrated proccessing.

It’s obvious that as a firm we really push the use of Intuit Payment Solutions for your credit card processing.  Believe it or not, we don’t just push it because it’s Intuit branded.  It’s really for 2 simple reasons. 1 – You can process credit cards directly through your QuickBooks software. 2- Deposits, accounting for fees and reconciliations are extremely simplified.

Ok, now that I said that, what happens if you choose to not use Intuit’s processing?  Here is a little bit of help.  When you run cards through a separate processor, you will have to batch out that CC machine at the end of the night.  That batch out process will leave you with a batch report where it will show you the totals for the day.  The report will show how much you processed in Amex, Visa, MasterCard & Discover.  Now that you have that information, what do you do with it?

Well, the processor is going to automatically make deposits to your bank based on the money received for the day.  You have to enter these deposits into QuickBooks to make sure your bank account balance stays on track.  The first thing to know is that if you were to accept all 4 types of cards in one day, you should have 3 deposits for that day.  One for Mastercard and Visa (they total together and hit as one deposit), one for American Express and one for Discover.  Now how do we account for the fees? Well that depends on which scenario you have.

Scenario 1 – The Easy One

Your processor gives you all the money you processed for the day and pulls the total of all the fees out on a monthly basis.  Make your deposits in QuickBooks exactly as the batch report shows you.  You should be able to go to Banking>Make deposits where the Payments to deposit screen will come up. If the report says you processed $300 of Mastercard and Visa – choose all the Mastercard and Visa transactions for that day and it should add up to $300.  Bounce those payments on to the deposit and save and close.  Do the same for Amex and then Discover.  At the end of the month, when the processor takes out $150.00 in processing fees, write a check for the $150.00 and post it to CC processing fees expense.

Scenario 2- The Not-So-Easy One

Your processor takes the fees out on a per deposit basis.  Example – Your batch report shows $300.00 worth of MC & Visa for the day but the deposit to your bank was only $292.50. For this scenario, you need to go to Banking>Make deposits where the Payments to deposit screen will come up. If the report says you processed $300 of MasterCard and Visa – choose all the MasterCard and Visa transactions for that day and it should add up to $300.  Bounce those payments on to the deposit.  Now on the top of the deposit, you will see all the payments totaling up to the $300.  Then on the next line down, you need to choose your CC processing fees expense account in the “From Account” column and then under the “Amount” coulmn, enter in the amount of fees that were taken out of the deposit as a negative.  In the example, ours would be -$7.50.  Now your deposit should show $300 of undeposited funds (could be multiple lines added together), -$7.50 of fees and a Deposit total of $292.50.  This will account for your AR properly, your fees properly and the deposit total properly.  To find out the fees that were taken out, be sure to log into your CC processor website where they should give you all the detail you need.

Now you see why it’s easier to use Intuit Payment Solutions?!?!  J

As always, if you need assistance with this or anything else related to QuickBooks, give us a call!

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2 Responses to How to deposit Credit Card transactions when not using Intuit’s integrated proccessing.

  1. Rubel Bogra says:

    Great find! Thanks a bunch – I applied but did not get instant approval.
    Not sure if they have the same reconsideration process as Chase but will wait and see.
    Used the link you provided so hopefully I get approved and you get a referal bonus.
    Thanks again mommypoints

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