How to handle credit card payment from customers?

1

Hi, I am running a small business, and will accepts credit card payment from customer.

But don’t know how to make it in the Sales Invoice / Receive?
Right now, all the sales are posted to the default “Account receivable”, but what if the same customer, who pay partially by Cash and Credit Card?

It is because if I received credit card, there has a credit card fee will be generated later from Credit Card company.

Right now, I am doing a delayed payment as below.

1st journal entry, just like what it does in Manager, but I have different AR accounts for different Credit Card Companies.

Dr AR-Credit Card Delayed payment $100
Cr Sales $100

2nd is compound journal entry, when I receive the Credit Card company statement at month-end.

Dr Bank $98
Dr Credit Card Expense $2
Cr AR-Credit Card Delayed payment $100

May I know how can I make it in Manager?

Thank you your time~

2

In the UK, we are not allowed to pass on credit card fees to customers. Not sure if that is the same with you?

3

Thanks for your reply.

I am not pass to customers. I just received $100 from Customer, no matter what payment method they used.

But if I received $100 by credit card, I need to pay $2 to Credit Card Company as fee, and I actual receive $98

4

@Monc
1, Create a Bank Account as “Credit Card” in the Bank and Cash Accounts
2, Create a Payable Account as Credit Card Charges Payable in the Chart of Accounts
3, Create an Expense account as “Credit Card Charges” in the Chart of Accounts
Then whenever receiving payments from customers via Credit Card receive it in the Credit Card account in the Bank and Cash Account
And then via a Journal entry Credit from Bank account and debit to the payable account the amount you need to pay to the Credit Card Company
And then you can pay to the Credit Card Company at any time as an expense and withdraw your amount from the Bank

5

Gross up the amount received and deduct the credit card fees to equal the net amount received as follows:

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6

Yes, that’s how I do it :slight_smile: