How to Record Credit Card Payments in QuickBooks Desktop and Online?

In QuickBooks Online, there are many ways that you can use to record payments of credit cards. With these ways, you can also maintain accurate financial reports and track your expenses. These ways are mentioned here so that you can follow the way you want to. Just follow the step-by-step process. After that, you can know how to record Credit Card Payments in QuickBooks Desktop and Online.

What is Credit Card Payment in QuickBooks?

Credit card payment is the process of paying suppliers or receiving sums from customers. As credit card billing can be overwhelming, recording all the transactions via QuickBooks is a helpful method to manage and track financial advances within a company.

Before learning how to record credit card payments, you must know how to add the credit charges to your account.

What are the Benefits of Recording Credit Card Payments in QuickBooks?

There are many benefits of recording or entering credit card payments in QuickBooks Desktop. The list below shows some of these advantages:

1. It simplifies the reconciliation process which ensures accurate tracking and accounting of all transactions to maintain correct records.
2. It helps quickly recognize discrepancies and spot billing errors such as unauthorized charges, duplicate entries, and inconsistencies in amounts charged.
3. It protects against fraudulent activities by recording each transaction within the company appropriately.
4. It allows centralized tracking of business financial transactions.
5. It simplifies the record-keeping process in QuickBooks and provides significant insights into the overall business outcomes.
6. It helps in effective financial management by tracking expenses and income, cash flow, and making informed decisions depending on comprehensive and accurate financial reports.
7. The automated system saves time and reduces common errors.
8. It allows integration with other payment applications to ease transaction processes across different platforms.

Now that the benefits are clear, let us learn how to take and process payments in QuickBooks Desktop. It is essential to understand before you start recording your credit card payments.

How to Record Credit Card Payments in QuickBooks Online?

To Pay Down a Credit Card

1. Click on the “+New” option that is shown to you.
2. Go to the Money Out option if you are in the Business view or go to the “Other” option if you are in the Accountant view.
3. After that, click on the “Pay down Credit Card”.
4. You have to choose the credit card from which you make the payment to.
5. Mention the amount of the payment.
6. Type the date of the payment.
7. Choose the bank account from “Which You Paid for Credit Card”.
8. In case, you have to pay the amount using a checks.
9. Then click on I made a payment with a cheque.
10. Mention the Check Number in the field.
11. If you pay it electronically then mention the EFT number.
12. In this, if you want to attach the file attachments or notes.
13. Then click on the option Memo and Attachments.
14. Now follow displayed instructions one-by-one.
15. Click on the button “Save and Close”.

To Attach the Notes or File Attachments With the Payment

If you already record payments credit card in QuickBooks Online. Now you want to record the notes or attachments with it then the steps are as follows:

1. Click on the +New button sign.
2. In the case of Business, view go under the Money Out.
3. In the Case of Accountant, view go under the Others.
4. Then Click on the Pay Down Credit Card option.
5. You have to Choose the Credit Card to which you do the payment.
6. Write the Payment Amount in the field.
7. In the date field, mention the Payment Date on which you did it.
8. You have to click on the Bank Account from which you paid for the credit card.
9. Now, to Add the File Attachments or notes.
10. Click on the Memo and Attachments.
11. Follow the instructions shown to you to add the notes or attachments.
12. Click on Save and Close to save the changes and close the window.

An Alternative Method to Record Payments Credit Cards in QuickBooks Online

Write a Check

You have to create a cheque to record it in QuickBooks if you pay the credit card amount using the cheque.

1. Click on the +New sign.
2. Go to the Suppliers.
3. Then click on the Check option.
4. Select the name of the supplier for the payment of credit card in the Payee field.
5. Go to the field of Bank Account.
6. Choose the Bank Account or the Credit Card from which you have done the payment.
7. Mention the mailing address and then pick the date of payment.
8. Write the Check Number in the field of check no.
9. If you paid it electronically then you have to mention the EFT Number.
10. Go to the Category drop-down arrow.
11. You have to do a selection from the drop-down options.
12. Write the Description and an Amount.
13. Under the Memo enter the Notes.
14. Click on the button Save and Close.

Create a Transfer

By creating the transfer you can record the credit card payment using the bank transfer.

1. Click on the +New option to create a new one.
2. In the “Other” field, click on the option “Transfer”.
3. Choose the bank account in the field “Transfer Funds From” the drop-down menu from where payment is done.
4. Choose the credit card in the field “Transfer Funds To” drop-down menu where the payment goes.
5. Provide the Amount of Payment in the field of Transfer Amount.
6. You can also edit the Date of Payment.
7. Under the Memo, you can mention the notes.
8. Press the Save and Close button when you are done.

Make the Payment after Reconciling Your Credit Card

Step 1: You have to Reconcile Your Credit Card Transactions

1. Open the QuickBooks Online.
2. Go to the Settings that is the Gear icon.
3. Click on the Reconcile from the Settings menu.
4. If you are doing it for the first time.
5. Then Click on Get Started.
6. Further, select Let’s do it.
7. Choose the Credit Card account.
8. You have to Enter the Missing Transactions if any from the statement.
9. Also, Adjust the Incorrect Transaction if there are any.
10. When you get the difference of zero.
11. Then only Start the Reconciling process.
12. When you start the reconciling then on the screen of reconciling.
13. You have to select the Checkbox of the Transactions that match the other transactions that are on your statement.
14. Click on the Finish Now.
15. After that, click on the Done button.

Step 2: Pay Your Credit Card Transactions

You have to choose the way you want to pay your credit card bills. These ways are as follows:

Pay a Portion of the Bill or All Bills: You can make the partial or full payment.

Enter Your Bill to Pay Later: You have to move the balance in the credit card account to Accounts Payable so you can also pay it later.

Done: When you do not want to record the credit card balance payments or bills when you are reconciling.

Use Banking Download

You can record the payment by transferring the record when you use to pay the credit card expense and are connected

Transfer the Payment

1. In QuickBooks Online.
2. Go to the Banking option.
3. Then further click on the Banking option.
4. Click on the account from where you want to Transfer the Payment.
5. You have to Click on the Transaction.
6. After that, click on the Pay Down Credit Card.
7. Click on the drop-down arrow of the Transfer Account menu.
8. Choose the account you want to Send the Transaction to.
9. Then click on the Confirm.

You can transfer the payment with the Record as a transfer option as an alternative method. The steps are:

1. Go to the Banking option.
2. Then further Click on the Banking again.
3. Choose the account from which you want to Transfer the Payment.
4. Click on the transaction then select the radio button named Record as Transfer.
5. Hit on the drop-down arrow of the Transfer Account.
6. From the drop-down menu, Click on the Account to which you want to send it.
7. In the end, click on the Confirm Button.

Match the Transaction

When you have done this transfer of the transaction; match it with the new account. For this, the steps are:

1. Click on the Tab Recognize.
2. Search for the Transaction.
3. Go to the Action column.
4. Click on Match to Match all the Transactions.

In conclusion, you get to know how to record payment of credit cards in QuickBooks online. So do follow the process accordingly and get it done so that you can track your expenses properly.

How to Record Credit Card Payments in QuickBooks Desktop?

Business accounting requires recording several transactions that are received and paid for its development in the market. Recording these statements gives a holistic preview of the company’s growth.

QuickBooks offers several recording processes that ensure appropriate recording of all financial transactions within a company account. This article will guide you on how to record credit card payments in QuickBooks Desktop successfully.

After reading this article you will understand the method of recording a payment in a business account via QuickBooks Payment and the benefits you can gain by recording such transactions.

How can You Add Credit Card Charges in QuickBooks Desktop?

The steps required to add credit card charges to your account are easy. The process also remains the same whether your customer made a full or partial payment. Follow the steps below to add your credit card charges to QuickBooks Desktop:

1. Head to the Banking tab and choose Edit Credit Card Charges.
2. From the Credit Card dropdown list, select the relevant card account. Set the type to Refund/credit to record a refund or credit (the default type is set to Purchase/charge).
3. Go to the Purchased From dropdown and select the correct vendor.
4. Select the transaction date.
5. You can add a memo to the description box to elaborate on the credit refund or charge.
6. Go to the Expenses or Items menu and add the expense or item details you plan on tracking.
7. Press Save and Close once done to record the transaction.

Now, after adding the credit card charges, make sure that your account is reconciled.

How to Reconcile Your Credit Card Account in QuickBooks?

Reconciliation of credit card accounts means matching your transactions from your bank statements within QuickBooks. It is significant because, if neglected, it can lead to inaccurate finances and even legal issues. Check the below steps to reconcile your credit card account:

1. Check whether your opening balance is correct.
2. Make sure that all the transactions for the statement period are entered.
3. Visit the Banking menu and click on the Reconcile option.
4. Match the transactions on your bank statement with the ones in QuickBooks by checking off each of them.
5. Once the difference between the QuickBooks data and your statement is USD 0.00, the reconciliation is done.

How to Process Payments in QuickBooks Desktop?

Credit card payments can be made either via QuickBooks Desktop or in person by the customer. You need to connect your QuickBooks payment account to QuickBooks Desktop, with the steps given below:

Step 1: Connecting Your Payment Accounts

Here are the steps below to connect your payment accounts:

1. Navigate to the Customers tab.
2. Press Link Payment Service to Company File. In case a message pops up related to credit card protection, fill out the necessary fields and click on OK.
3. Input the credentials you used to sign up for QuickBooks Payments, and press Sign In.
4. Now, choose Connect (or Transfer, if you are transferring your payments account to any other company file. Then, select Yes, Transfer).
5. Once done, you will see an icon on the homepage signifying you are connected and signed in to QuickBooks Payments.

Step 2: Changing the Account QuickBooks Deposits Money

You can always use the same account you use to deposit customer payments. However, if you are willing to change it, follow as stated below:

1. Sign In to the Merchant Service Center.
2. Go to the Account tab and then click on Account Profile.
3. Choose Edit under the Deposit Account Information section.
4. Input details of the New Bank Account and enter your Routing Number.
5. Type the Account number where you want to transfer newly transacted money. Repeat it to Confirm the Account Number.
6. Ensure that the bank account owner’s name and the name in the Account Holder/ Doing Business As match.
7. Choose the Reason for this account change and finally select Submit.

Note: If the Routing Number is shown as invalid, contact your bank to get the correct number.

Step 3: Turning on Payment options and online invoices with the Payment Process

Follow the steps below so that your customers can either pay you online or in person.

Connect Your Credit Card Reader

1. Turn on the card reader and connect it to the computer using a USB cable.
2. Launch QuickBooks Desktop.

Send Invoices to Customers Paying Online

1. Connect to QuickBooks Payments account
2. Head to the Edit option and select Preferences.
3. Choose Payments and then click on the Company Preferences menu.
4. Under the Online Payment category, select all the payment methods you want to make available for all customers. Now, press OK.
5. Choose Applying to Existing Customers (This will become your default payment setting for all customer invoices.)
6. To send an online invoice, go to the Customers tab and choose Create Invoices.
7. From under the Customer: Job dropdown list, select the customers. Make sure there is an email entered in the Email field.
8. Review the online payment method under the Your Customers to Pay Online Using- option.
9. Select the options of payment through Change if you want to change the payment options, and then press Save.
10. Include the products and services you want to sell.
11. Complete filling up the remaining invoice.
12. At the top of the invoice form, click on the Main tab.
13. Choose the Email dropdown button and click on Invoice.
14. Check the invoice message and press Send when you are satisfied with the invoice details.

Note: QuickBooks sends this mail to all your customers with a Pay Now button. Your customers can click on the button to initiate a transaction.

Process in-person Payments

In the case of in-person payments, you would not need to send emails to your customers. However, you need to create a sales receipt:

1. Head to the Customers tab and choose Create Sales Receipts.
2. Select the customer from the Customer: Job option.
3. Include the products and services purchased by the customer.
4. Enter the required details in the remaining sales receipt.
5. Select the payment method, whether cash, check, or debit/credit card.
6. For credit/debit cards, input the card details and press Done. With a Magtek Card reader, choose Swipe/Insert card. Swipe or insert the card and select Process Payment.
7. Once done, click on Save and Close.

Note: For checks, a signed authorization form is essential, which enables debiting money from the customer’s account. Also, QuickBooks sends customers their sales receipts via email.

Processing Payments for Open Invoices

If you have sent an invoice via email, you can ask the customer to select the Pay Now button to initiate the transaction. Or, you can process their payment and check if they match their invoices:

1. Navigate to the Customers menu and then click on the Receive Payments option.
2. Choose the customer from the Received From option.
3. Under the transactions section, select the invoice you have sent them via email.
4. Choose the payment method as mentioned above (steps 6 and 7 under the ‘process in-person payments section) and click on Save and close once you are done.

How to Record Credit Card Payments in QuickBooks Desktop?

To record credit card payments in QuickBooks Desktop, you need to check the following steps:

1. Visit the Banking menu and choose the Write Checks option.
2. Now select the bank account you want to use to pay the credit card from the dropdown menu.
3. Select the bank account payment or transaction date.
4. Click on the Pay to the Order dropdown and select the credit card company.
5. Input the payment amount and head to the Expenses tab.
6. There, select the credit card account and press Save and Close after transaction completion.

Using QuickBooks can be a tricky situation if you are not aware of all the processes that are associated with it. Recording credit card payments is a significant part of managing the financial and business development of a company.

The accurate reports recorded in the software enable users to make informed decisions. The simplified processes ensure effective progress and productivity of a business.

In this article we have shared a detailed insight into the methods that are essential for recording credit card payments in QuickBooks Desktop. It will help you to comprehend the complexities within the software and manage your accounts more efficiently.

Still, if you are willing to learn more about it or have any query, feel free to contact our professionals to receive detailed information.

Accounting Professionals, CPA, Enterprises, Owners

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Frequently Asked Questions (Faqs)

How to Record a Credit Card Payment from An Overpayment?

It can be managed via adjustments in the reconciliation process. You can enter a negative ending balance to carry it over to the next month.

You can also split the transaction by assigning several payees and amounts as required:

Search the overpayment transaction in the QuickBooks ledger and select Split transaction.
As the split transaction window opens, assign the parts of the overpayment to different expense categories and payees.
Make sure that the overpaid amount is accurately split to project the actual amount.

How can I Sign up for QuickBooks Payment through QuickBooks Desktop?

You can easily do so by following these steps:

Navigate to the Customers tab and click on Add Credit Card Processing.
Now follow as instructed on the screen and complete filling out the form to apply.

What are Deposit Times for Customer Payments?

Once the payments are processed, QuickBooks sends money to your account in the bank. The time required for the money to be received depends on the product and the payment type.

It is important to note that it takes some time for the first transaction as QuickBooks sets up your account. The process runs smoothly from then on.

What if I want to Enter the Credit Card Credits after Recording Payment of Credit Cards in QuickBooks Online?

In QuickBooks, click on the New button that is on the top left side of the left menu bar.
Select the Vendors column.
Click on the Credit card credit.
You have to enter the information of the credit transaction.
After that, click on the Save and Close button.

How can I Categorize the Credit Card Payments if not done while Recording Payment of Credit Cards in QuickBooks Online?

Click on the + sign that is New button.
Choose the Expense or check the option.
Provide all the details that are required like Payment account.
You have to use the section of Category details.
This section is used to enter the interest amount.
Do choose the category from where you want to track it.
Click on the Save and Close button.

Why Reconcile first and then make the Payment of Credit Card and then Record Payment of Credit Cards in QuickBooks Online?

You have to reconcile first so that you get to know about any changes or missing transactions related to the credit card. If there is any then do record the payment. You also get to know about the adjusting of amount if any. This helps you to identify your transactions that have not been recorded.