Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Chapter 13
Chapter 14
Chapter 15
Chapter 16
Chapter 17
Chapter 18
Chapter 19
Chapter 20
Chapter 21
Chapter 22
Chapter 23
Chapter 24
Chapter 25
Chapter 26
Chapter 27
Chapter 28

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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.

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Last modified: May 21, 2004