How to Record Credit Card Payments in QuickBooks Online & Desktop?

How to Record Credit Card Payments in QuickBooks Online & Desktop?

Recording transactions and credit card payment is a necessary task in QuickBooks so that you can follow up on your business financials and other expenses. By doing so, you can prepare the fiscal report by the end of every financial year. If you are unsure about the right procedure, we will help you to understand how to record credit card payments in QuickBooks Online and Desktop.

In this blog, we will draw your attention to a number of ways of recording a credit card payment in QuickBooks. The blog covers the following:

How Do You Record Credit Card Payments in QuickBooks Desktop?

Although there are different ways to record credit card payment in QuickBooks, we are providing the most convenient ways to get the job done.

To learn how to record credit card payments in QuickBooks Desktop, you will have to add the credit card charges and reconcile the credit card payment in QuickBooks Desktop.

Step 1: Add Credit Card Charges

To record the credit card charges in QuickBooks Desktop, you are required to select your credit card account, choose the vendor, add the necessary details, pick the items or expenses to track.

Here, we are specifying step by step guidance:

  • Click on the “Banking” option using the tab located on the top.
  • When you see the list where you need to choose the “Enter Credit Card Charges” option.
  • In the new window, click on your credit card account.
  • Here, you will notice that the “Purchase/Charge” is chosen by default. If you are planning to refund the credit then you can choose the other option “Refund/Credit”.
  • Now, choose the vendor using the “Purchased from” drop-down option.
  • Add the relevant date.
  • After that, add some details related to the purchases in the “Memo” section. However, this is optional.
  • Here, you can add the “Items” or “Expenses” option that you wish to track in the respective tab.
  • Hit the “Save and Close” button.

Step 2: Reconcile Credit Card Account

It is suggested to reconcile your credit card before you write the check. All you have to make sure the difference becomes zero.

  • Click on the “Banking” option located on the top right.
  • Then, go to the “Reconcile” option.
  • Now, select your credit card account that you wish to reconcile. For this, you can use the “Account” drop-down menu.
  • Add the credit card date in the “Statement Date” field.
  • Add the ending amount in the “Ending Balance”. Make sure you enter the same amount as specified in the credit card statement.
  • Now, add finance charges or interest charges. You can enter the date, fees, assign a category using the drop-down of the “Account” option.
  • Hit the “Continue” button. This will redirect you to the “Bank Reconciliation” window.
  • You will also find the transaction of the card. Then, you can match the transactions with the credit card statement.
  • You will have to match the credit card statement until it becomes zero.

Note: If you don’t see the difference as Zero, this indicates you have been making mistakes while performing the previous steps. You can recheck the steps and perform the same steps until the difference is zero.

Once the difference becomes zero and the credit card account balanced, you can proceed with the reconciliation process. Thereafter, you can continue with writing a check for payment. This is the whole procedure for how to record a credit card payment in QuickBooks desktop.

How Do I Record Credit Card Payments in QuickBooks Online?

QuickBooks recently released a feature called Pay Down a Credit Card. This makes your process easy to record credit card payment in QuickBooks Online. 

Earlier to this, users were having confusion between selecting which credit card account they are paying or the account that funds a credit card to create payments. But, using this dedicated feature, you can diminish your confusion.

Besides that, there are a number of ways to record credit card payments. Let us teach you the procedure of QuickBooks online record credit card payment in different ways.

Way 1: Use Pay Down Credit Card in QuickBooks Online

In QuickBooks Online, you can navigate through the Pay down credit card feature and add the card details to record your credit card payments.

  • Click on the “+New” button from the left navigation bar.
  • Choose the “Others” option through the 4th column.
  • Then, select the “Pay down credit card” option.
  • When you see a new screen, select the “Which credit card did you pay” option.
  • Thereafter, click on “Date of payment” or “How much did you pay”.
  • In the “Pay Down Credit Card” fields, you can enter the following details:
    • Choose the account that you used for making payments in the “What did you use to make this payment” section.
    • There are other fields for additional details such as attachment and Memo.
    • Now, review all the information you have entered.
    • If everything is right, click the “Save and Close” button.

Tip: If you want to check the credit and debits in the transaction then you should enable this Transaction Journal option. For this, you will have to go to the More option located at the bottom and then choose the Transaction Journal.

Way 2: Write a Cheque

To record credit card payment in QuickBooks Online, you can also use a cheque. All you have to do is create a cheque by adding the relevant information.

  • Click on the “+New” button.
  • Choose the “Cheque” under the “Suppliers” section.
  • Click on the “Suppliers name” in the “Payee” field.
  • From the “Bank Account” filed, choose the credit card or bank account from which you will make the payments.
  • Add the “Mailing address”.
  • Then, select the “Payment Date”.
  • Now, in the “Cheque no.” field, type the cheque number. If the payment was made electronically then select the “EFT” option.
  • Make a selection using the “Category” drop-down menu.
  • Add the amount and description.
  • Add notes under the “Memo” section.
  • Hit the “Save and Close” button.

This is how you can record credit card payment in QuickBooks Online. Make sure that you enter the correct details for your cheque while performing these steps.

Way 3: Create a Transfer

Payments can also be recorded through the bank transfer. All you are required to do is create a transfer, select your bank, choose the credit card, enter the amount, and save the details.

  • Click on the “+New” button.
  • Choose the “Transfer” option under the “Other”.
  • Select your bank account from which the credit card was paid. You can use the “Transfer Funds From” drop-down menu.
  • With the “Transfer Funds to” drop-down menu, pick the credit card you are sending the payment to.
  • Add the payment amount in the “Transfer Amount” field.
  • Edit the date if needed.
  • Add notes under the “Memo” section.
  • Hit the “Save and Close” button.

Once done recording a credit card payment in QuickBooks, you can reconcile the credit card. Because only after reconciling the credit card, you can make a payment transaction.

To Sum Up

There are different ways of recording a credit card payment in QuickBooks. In this guide, we have shown you the best possible ways for how to record credit card payments in QuickBooks Online and Desktop.

For instance, in QuickBooks Desktop, you can simply enter the credit card charges and reconcile the credit card. On the other hand, in QuickBooks Online, you can opt for a pay down credit card feature. By creating a cheque or transfer, you can also record the credit card payments in QuickBooks Online.

Learn about QuickBooks error H202 and fix this stubborn error in your program.

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