If merchant fees for credit card processing are removed from the deposit
before it posts to your bank account, you may want to record the amount of the
merchant fees on each deposit. This will allow the transactions entered into
QuickBooks to match the actual transactions in your bank account in order to
more easily facilitate bank reconciliation.
If you are tracking your merchant account payments daily through the use of
undeposited funds you can record the fees charged to you at the time they are
incurred. In your regularly scheduled deposit you can enter an additional line,
using a negative number to reduce the total amount of the deposit so that it
agrees to the actual amount that will post to your bank account. Code the
negative amount to the appropriate expense account (for example, Merchant Fee
If you do not know when or how much you will be charged or you are not
tracking your deposits on a regular basis, you may wish to make use of a
holding account. If you use a holding account, you may still enter your fees at
the time you record your deposit. However, the deposit is only recorded at the
end of a period of time, such as after the receipt of a statement.
Alternatively, fees may be recorded manually against your holding account at
For more information on these methods or how to enter the deposit, see:
What are my options for
tracking credit card payments?
How do I make