All About Credit Card Payments in QuickBooks

Your Complete QuickBooks Credit Card Guide: How to Record & Categorize Payments

Businesses need the capability to process credit card payments to stay relevant in today’s digital world. However, when your business utilizes multiple apps, platforms, or software services at once, it can get confusing and overwhelming for you and your customers.

QuickBooks processes credit card transactions and keeps track of your bank records, making it easier for any business owner. All your records and information stay in one place, ensuring the convenience of the entire process. We’ll help you understand how to enter and categorize credit card payments in QuickBooks, how it will benefit you, and how Fourlane can help.

Using QuickBooks for Credit Card Processing

With so many credit card processing options available, you may wonder what gives QuickBooks the edge. Some of the benefits of choosing QuickBooks credit processing software include:

  • It’s Well-Known: Millions of businesses use QuickBooks, so new employees and executives are more likely to have experience with the system.
  • It Takes Less Labor: The system’s simplicity requires low maintenance and supervision.
  • It Incurs Few Errors: The automated system makes manual data entry infrequent, reducing the likelihood of errors.
  • It Saves Time: With automation, custom reports, and calculations, QuickBooks works quickly, giving you time to focus on other important things.
  • It’s Secure: QuickBooks is a secure platform that keeps business and customer data safe.
  • It Can Integrate With Other Apps: QuickBooks can connect with apps like PayPal and Square Hub, making it easy to run your business and collect payments.

With these benefits and more, it’s easy to see why QuickBooks is the leading software in the industry.

How to Record Credit Card Payments in QuickBooks

The process of recording credit card payments in QuickBooks looks a little different, depending on how the payment is submitted.

Credit Card Payment from a Sales Receipt

When you have a sales receipt and want to record it in QuickBooks, there are a few easy steps you’ll need to complete:

  • Start at the home screen and click on the plus sign.
  • Go to Customers, then click Sales Receipt.
  • A window will pop up where you can fill in the necessary information.
  • End the process by clicking OK.

Credit Card Payment from an Invoice

To process a credit card after receiving an invoice, follow these steps:

  • Start on the home screen and click on the plus sign.
  • Click Receive Payment.
  • A window will appear that allows you to fill in customer information, payment date, and card details. Then select the account where the money should be deposited.
  • Click on the invoice and type in the amount you want to charge before completing the process.

Just remember that credit transactions often take a few days before appearing in your bank account, so don’t panic if you can’t see the transaction immediately. When the payment processes through your bank, you’ll be able to see the records through your QuickBooks account.

How to Enter Credit Card Charges in QuickBooks Online

You can use QuickBooks when completing credit transactions over the phone, in person, or at a storefront.

  • Start with your QuickBooks POS home screen.
  • Click Make a Sale.
  • If you’re selling in person, now is the time to use your barcode scanner.
  • Select services or products in the drop-down menu if you don’t have a scanner.
  • You’ll see the subtotal, tax, and total at the bottom of your screen.
  • Under the payment options, click Credit, choose the card type, and type in this info. (This step is unnecessary if you have a card reader.)

How to Categorize Credit Card Payments in QuickBooks

You have the option to categorize transactions when you record them in QuickBooks. This option gives you better control over where your money is going and visibility into how different expense categories compare.

To categorize transactions, follow the steps outlined below.

  • Click on Transactions, then Bank Transactions.
  • Select the bank account you want to review.
  • To the right of every transaction, you’ll find an Assign To column with categories automatically assigned by QuickBooks. You have the option to confirm or edit these assigned categories.
  • Any transactions that QuickBooks hasn’t categorized will say Assign a Category.
  • Click on the transaction to select the category manually.
  • Some categories, like advertising, job supplies, or rent, are already there, but you can add custom categories if needed.
  • All categories are classified as expenses, income, or fixed assets.

QuickBooks Mobile vs. Desktop Payments

You can access QuickBooks on a mobile device or desktop computer. There are different benefits and limitations associated with each.

With the desktop version, you may have to pay additional fees for cloud access and a fee for every user. You will have to back up data manually, and your third-party app integration capability tops out at around 200. You do have the capability to accept payments in the form of an e-check, a card, or an ACH transfer.

With the online mobile version of QuickBooks, you get access for 25 additional users, automatic data backups, and over 750 third-party app integrations. It can take payments on the go with Apple Pay, PayPal, Venmo, ACH, and debit and credit cards. With all these benefits, the mobile version is the best fit for most businesses.

Fourlane Can Help You Master QuickBooks

QuickBooks is the obvious choice for most businesses when they need to process and record credit card payments. The transition from your current system may seem daunting, but with Fourlane, our consultants, videos, and articles will help you learn the nuances of the software so you’ll always be in control of your business’ finances.

When you have questions, reach out to Fourlane to find out how our QuickBooks consulting services can benefit your business today.

Leave a Comment

Your email address will not be published. Required fields are marked *