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  #1  
Old 03-06-2003, 05:41 PM
AlexatAkasa AlexatAkasa is offline
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Merchant Account / Credit Card fees posting

Hello. I've searched through the forum and cannot find an answer to my question.

I'd like to use a Merchant Account for credit cards (not the Quickbooks one). What accounts do I need to set up and how can I attribute an automatic deduction of the processing fee (for me it's 0.25 + 3.35%) when I receive payments on the credit card? What else do I have to do record the transaction properly.

Thanks,

Alex
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  #2  
Old 03-06-2003, 07:05 PM
plg plg is offline
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Is the fee taken out by transaction?

You may be making life difficult. While some processors used to deduct the fee for each transaction, most now do it monthly. In addition, your fees may vary, if they were phoned in, if they are government or company cards the rates are higher.

Unless 1- they do deduct each amount before putting the money in your bank and 2 - your bank balance is such that the deducted fees could cause you to write bad checks I strongly suggest not trying to keep up with it day to day. And certainly not on an automatic basis, because there are always exceptions.

I will tell you how I handle credit cards. I have 4 receivable asset accounts, One is VISA and MC online, another VISA / MC swiped, one AMEX and one Discover.

I have one expense account Credit Card Discounts.

Daily all sales are entered into the respective receivable accounts. Since my online software charges and collects the cards before the order is processed, I sometimes end up giving refunds on online sales. These are done as a line item showing a negative sales figure that goes directly into the correct account. In that manner, the cash receipt (not invoice) total is the same as the original charge and the refund shows as a separate credit, as it should.

Daily I go online with my bank to see what deposits have been made. Then using the QB transfer function I transfer the deposits from the credit card holding accounts into the respective checking accounts. I also go into the credit card holding accounts and clear the transactions, as if doing a daily reconciliation. 6 creidt card sales for $ 50. One deposit 2 days later for $ 300. Check off 7 lines.

Once a month, either from the credit card processor statement, or from the separate deduction in my online bank statement, I do a journal entry from my checking account to the Credit Card discounts account. That's how it actually happens, so that's how I record it.

If they do, indeed, deduct the fees daily, first may I offer my sympathy, then I'd suggest you handle the fees by journal entry. If I knew more about your invoice / cash receipt / money in routine, I might be able to help more, but unless you must do it daily, I'd use the end of month method.
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  #3  
Old 03-08-2003, 12:15 PM
Joey Joey is offline
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When you Receive Payments, receive the full amount on the customer's account to clear their balance and have the funds go to Undeposited Funds. Then go to Make Deposits and select the payment(s) that are on that day's settlement. Then tab down to the last line of the deposit screen and in the From Account column, select your Credit Card Fees expense account and tab over to the amount column. Enter the amount of the fee as a MINUS amount to reduce the total deposit to the amount that went into your account. This will also charge your expense with the fee. Done.
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  #4  
Old 03-08-2003, 05:40 PM
plg plg is offline
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AlexatAkasa - What are you doing to pay those kinds of rates?

I'm paying 1.49% and 25 cents a swipe, with total monthly fees of $ 10. No minimum, no other charges. Just set up a deal for same rates with $5 a month total fees.

MOTO (mail order / telephone order) and other card not present program is 2.25% plus 25 cents. Full point less than what your paying. Same rates for net sales.

Check this out: http://www.giftboard.net/processing.html

There's a form you can print and fax for a free analysis / quote.

I don't sell this, just know it's a good deal.
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  #5  
Old 03-10-2005, 03:39 PM
divisionoptical divisionoptical is offline
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Thanks Joey

Your reply was perfect. I hope this works. Seems weird.
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  #6  
Old 03-10-2005, 03:43 PM
qbsrox qbsrox is offline
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Another great resource is: http://emerchantdiscount.com

They have very good rates and excellent customer service.

Rox :-)
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  #7  
Old 03-10-2005, 03:44 PM
qbsrox qbsrox is offline
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Also, many merchant providers will switch your fees to a monthly deduction instead of per transaction. You will have to call and request it, but it makes reconciling SO much easier!

Rox :-)
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  #8  
Old 03-11-2005, 10:38 AM
EL34 EL34 is offline
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Definately get a monthly deal with your card merchant.

It will drive you crazy having daily deductions from your bank account. What a mess, I just went through this with quickbooks mechant services

When you get on the monthly billing plan, all you do is enter one large lump sum as an expense for each card group.

I have an expense account called, Bank service charges. MC/Visa, AE and Discover monthly fee's all get charged to this account when I receive the monthly statement from each card company.
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  #9  
Old 09-17-2005, 08:10 AM
merchantsvs merchantsvs is offline
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processing

we also provice discounted processing. 2.25% + .20 cents $5 statement fee. 1.49% for check cards. all retail merchants we provide free terminals to use for as long as your a merchant. FREE module for to integrate into qb.
http://www.aaa-full-color-business-c...lients/tms.jpg
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  #10  
Old 02-18-2014, 04:17 AM
jennyparsons jennyparsons is offline
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merchant applies for a merchant account

When a merchant applies for a merchant account, there are a number of documents that he or she will have to submit. Whether your business is new or an existing one, the application process is the same.

As far as credit history is concerned, a review of the business' financial performance will almost certainly be done during the application process. A typical request a card processing company will make is to see the business' financial statements for the latest two years. The organization's principals will also be scrutinized and they are usually required to provide their tax returns for the latest two years. If not satisfied by the information in the tax returns, the merchant services provider will pull their credit files. Either way, SSN must be provided. You need to understand that banks view a merchant account as a form of a line of credit and the application process is designed accordingly.
Reference : http://www.fetchflow.com/blog/authorize-net-invoicing

Last edited by jennyparsons; 02-20-2014 at 08:01 AM.
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