Credit card payments

Payments by credit card can usually be entered as deposits into the bank account, if this represents the actual transaction. XE "Credit card payments" XE "payments:credit card" These accounts generally deduct a service charge each month, based on the volume of business. The service charge is best handled as an ATM purchase, that is, as a check with no check number (and not to be printed.)

If the credit card company requires direct transmittal of credit purchase documents, a separate bank account is needed. (It may not seem like a bank account, but other account types lead to complications.) These cards usually require a deposit recorded as net of the service charge. The service charge would be shown as a negative amount on the deposit record, going to an expense account.

Each month, the credit card company returns a check, which will be deposited in your bank account. Within QuickBooks, a deposit is not the optimum record. The money is already recorded as in your possession. The effective way to handle the transaction is by writing a check in the credit card account. The opposing account is your real bank account, which will receive the money as a transfer. Because of reasons internal to QuickBooks, the credit card account should be reconciled.