How payments with credit card fees are automatically reconciled in Quickbooks Online if they are absorbed

Here’s how credit card fees will be recorded in Quickbooks Online if you are absorbing them for your customers. 

We’ve made it easier to reconcile any credit card fees that are absorbed back to your Quickbooks Online integration so you can ensure all your accounts receivables are up up to date.

How will these fees show in Quickbooks Online?
These fees will now be recorded automatically as funds in the deposits within QBO and will show as “Alternative Payments Fees” for each transaction with a negative dollar balance to account for the fee absorbed for each transaction.

How will the fee be reconciled?

• Alternative Payments will create the payment in QBO for the full invoice amount.
• A negative balance for the fees will be added to the deposit in QBO that states “Alternative Payment Fees” for the fees that were absorbed.
• For your payout, we will deposit the payment and add the negative balance so the deposit amount matches your bank balance.

EXAMPLE (Image above)
1 | The payment for the full amount is created in QBO for $100
2 | A -$1 is automatically added to the deposit
3 | The fee will go to an account called “Alternative Payments Fees” within QBO
4 | This fund will relate to the same customer that the invoice is associated with
5 | The $99 amount listed is the same amount as your payout from Alternative payments