Bank Feeds or online banking is one of the helpful features in QuickBooks Online. To take advantage of this feature, one has to make sure that the bank account or credit card account is added to QuickBooks Online. As you connect your credit card, it automatically starts downloading and categorizing the transactions. This makes your task easy as you don’t have to manually enter the transactions. If you are willing to know how to add a credit card in QuickBooks Online, we will guide you in detail.
- How to Add a Credit Card Account in QuickBooks Online?
- Step 1: Connecting the Credit Card or Bank Account
- Step 2: Downloading the Latest Transactions
- Step 3: Categorizing the Transactions
- Step 4: Updating the Connected Accounts
- How to Add a Credit Card Payment in QuickBooks Online?
- How to Add a Credit Card Processing Fees in QuickBooks Online?
- Condition 1: Recording the Fee on the Customer’s Invoice
- Condition 2: Recording the Processing Fee on the Invoice
- How to Add a Credit Card Refund in QuickBooks Online?
How to Add a Credit Card Account in QuickBooks Online?
To add your credit card account to QuickBooks Online, you have to connect either your bank or credit card account with relevant details. Thereafter, you are required to download the latest transaction and categorize them. Once done categorizing the transactions, you can update your connected accounts. For more details, you can learn with us how to add a credit card in QuickBooks Online in a few simple steps:
Step 1: Connecting the Credit Card or Bank Account
QuickBooks users have the eligibility to add multiple accounts to connect. It could include both personal and business accounts. However, you need to sort out the personal payments. To learn how to add a credit card in QuickBooks Online, pursue the following steps:
- Go to the “Banking” menu or select the “Transactions” menu.
- Then, move to the “Banking” tab.
- If you are adding the account for the first time, select the “Connect Account” option. Otherwise, select the “Add account” or “Link account” option.
- At this point, you have to search for your bank. Remember, you can get connected to any bank even in the case of a small credit union.
Note: If you are unable to find the bank from the list but want to upload your transaction to QBO then you should manually add the bank transactions.
- Now, press the “Continue” button.
- Here, you need to specify the username and password for the banking website.
- Then, pursue the prompts given on your screen. Please note, the bank may require security checks and thus it may consume some more time to connect.
- When you are done, choose your credit card or the bank account you want to connect to. Remember the accounts can be credit cards, savings, or current accounts. At this point, you will find all the accounts that are present at the credit card company.
- Make sure you select the matching account type for the account you are adding. Also, remember, these accounts will be available on the “Chart of Accounts” in QuickBooks.
- Once done, you have to make a decision on how far back you prefer the transactions to be downloaded. Some banks allow downloading the transaction of the past 90 days while some banks allow from 24 months back.
- After this, press the “Connect” button.
Note: In case you are unable to find the bank account then you can add the new bank account manually.
If you have added your bank account already to the Chart of Accounts but are unable to connect it then you should connect it from the Chart of Accounts. This will start downloading transactions automatically. Here are the steps for this:
- Select the “Accounting” menu.
- Then, click on the “Chart of Accounts” option.
- Now, search for the account that you want to get connected to.
- Move to the “Action” section and select the “Account history” option.
- Press the “Connect bank”.
- Then, pursue the on-screen instructions.
Step 2: Downloading the Latest Transactions
As you add the credit card account to QuickBooks Online, it automatically starts downloading the latest transactions. This will prevent you from adding them manually. To view the recent transaction in QBO, follow these steps:
- Go to the “Banking” menu or select the “Transactions” tab.
- Then, click on the “Banking” tab.
- Press the “Update” button.
Step 3: Categorizing the Transactions
After downloading the bank transactions, you can continue categorizing the transaction. All you are required to review and categorize the transactions by following these steps:
- Go to the “Banking” option.
- Now, select the tile for the account that needs to be reviewed.
- Then, select the “For Review” tab.
Step 4: Updating the Connected Accounts
To update the connected credit cards or bank accounts including username and password, you can go through these steps:
- Open the “Banking” option or select the “Transactions” menu.
- Then, click on the “Banking” tab.
- Press the “Edit” button and update the bank account that needs to be updated.
- Now, press the “Edit Sign-in info” option.
- Then, you can continue updating the account details.
- Press the “Save and connect” button.
This is how you can connect your credit card or bank account to QuickBooks Online. You can remove the account from online banking if needed in the future. Remember that removing the account will also delete the transactions you downloaded. In addition, the new transactions will stop downloading to your QuickBooks account.
How to Add a Credit Card Payment in QuickBooks Online?
To enter the credit card payment, you can use the Pay down a credit card feature in QuickBooks Online. To be more specific, let us take you to the following instructions:
- Click on the “+New” menu.
- Then, choose the “Pay down a credit card” button.
- Now, you need to select which credit card you want to use. To pick the credit card, you can use the drop-down menu.
- Here, you can mention the amount you want to pay. Also, specify the date on which you are paying.
- Now, you can choose “what you used to make the payment” by clicking on the drop-down menu.
- You will also receive other options that can be recorded in the transactions:
- A memo
- A check-box if your payment was made by the check
- Add the attachment
- Click on the “Save and Close” button.
If you want to see the credits and debits behind the transactions then select the More option from the bottom and choose the Transaction Journal. This transaction view will let you verify the credits and debits.
How to Add a Credit Card Processing Fees in QuickBooks Online?
The process of adding the credit card processing fees depends on two different conditions; when the merchant services charge you with a fee or when the processing fee is charged by you for the customers on the invoices. Let us take you to both these conditions and guide you on how to add a credit card processing fees in QuickBooks Online:
Condition 1: Recording the Fee on the Customer’s Invoice
If the customer pays you in full but the merchant services charge a fee for accepting the payment from a credit card, this fee also includes the costs for your job. To add the fee without touching the balance of the customer, you need to add the new line items on the customer’s invoice manually.
- Click on the empty line located on the invoice transaction (below the “Product/Service” column).
- Then, click on the “Add New” by clicking on the “Product or service” drop-down.
- After that, choose the “Service” option.
- Go to the “Name” field and type the description for your convenience fee.
- Press the “Save and close” button.
- After this, add the “Rate”.
- Press the “Save and Close” button.
This way you can enter the credit card charges on the customer’s invoice. Alternatively, you can also record your credit card charges received from the Merchant Service Center.
Condition 2: Recording the Processing Fee on the Invoice
To enter the processing fee on the customer’s invoice, you can start using the Service item. Then, you can add the CC fee, select your account for tracking the fee, and save the information.
- Go to the “Sales” option.
- Then, select the “Products and Services” option.
- Press the “New” button.
- Select the “Service” option.
- Enter the name of your service item, e.g., CC Fee.
- Now, select the “Income account” dropdown option and select the account for tracking the processing fees.
- Then, press the “Save and Close” button.
By following these steps, you can add the CC Fee to the customer’s invoices. This way you can enter the additional item when charging the customer with a processing fee.
How to Add a Credit Card Refund in QuickBooks Online?
If you want to refund the customers for sales receipts then you need to create the refund receipt. After adding the required details regarding payment method and customer, you can select from which account you wish to refund and share the refund with your customer. Let’s find out how to add a credit card refund in QuickBooks Online for the sales receipt:
- Select the “+New” option.
- Switch to the “Refund Receipt” menu.
- Then, select the relevant customer from the “Customer” drop-down menu.
- Now, you can enter the necessary details. Here, you have to be sure that you specify the same details available in the original sale.
- Once done, select the “Payment method” depending on where you want to send the refund. It could be “Credit Card” or “Bank account”
- Switch to the “Return From” field and select from which payment method and account you want to refund the amount.
- Click on the “Save and Close” button.
By executing these steps, you can enter the credit card details and refund your customers. If required, you can take a print of the refund receipt when sending the refund receipt.
Adding a credit card or bank account to your QuickBooks Online is beneficial for certain reasons. It lets you download the transitions automatically. Along with this, you can enter the processing fees for the customers’ invoices, send credit card payments, and credit card refunds. Here, we have explained how to add a credit card in QuickBooks Online along with other helpful information related to credit cards.
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