Child pages
  • Merchant fees


 

 

Close

How satisfied are you with our online help?*

Just these help pages, not phone support or the product itself

0
1
2
3
4
5
Very dissatisfied
Very satisfied

Why did you give this rating?

Anything else you want to tell us about the help?

Some customer payments may have merchant fees deducted before being deposited into your bank account. How you record these sales will depend on how the transaction is shown on your bank statement.

You should also check with your accounting advisor about how the tax on these transactions should be handled so it's reported correctly on your BAS/GST reports.

 

If your bank statement shows the sale with the merchant fee deducted

If your bank statement shows the sale with the merchant fee deducted

In this example, you've invoiced a customer for a $220 sale. Because they paid using AMEX you incur an $11 AMEX merchant fee. Your bank statement then shows the AMEX payment less the merchant fee ($209).

This scenario assumes you know, or can calculate, the value of the merchant fee.

  1. Record the payment for the invoice and select the option Group with Undeposited Funds and select the applicable Payment Method.
    Receive payments window with group with undeposited funds option selected
  2. Go to BankingPrepare Bank Deposit and click Deposit Adjustment. The Bank and Deposit Adjustments window appears.
  3. In the Fees and Cash Back section, enter the merchant fee in the Amount field and choose your applicable merchant fees account in the Expense Account field.
  4. Click Record. A new transaction line representing the merchant fee will appear in the Prepare Bank Deposit window.
  5. Select the transactions and the fees that make up the total value of the deposit to your bank account, then click Record.
    Prepare bank deposit window 2 transactions selected

After completing these steps, the sale is closed and you've recognised the AMEX merchant fee. The Bank Register window will now show a single transaction representing what was actually received into your bank account ($209).
Bank register showing single bank deposit

Clicking the transaction's zoom arrow displays the breakdown of the transaction, consisting of the payment received and the deducted merchant fee:

Prepare bank deposit window containing 2 transactions

If your bank statement shows the merchant fee separately

If your bank statement shows the merchant fee separately

In this example, you've invoiced a customer for a $220 sale. Because they paid using AMEX you incur an $11 AMEX merchant fee. Your bank statement shows the full AMEX payment including the merchant fee, and also shows the merchant fee being deducted as a separate entry.

  1. Record the payment against the open invoice.
    Receive payments window with group with undeposited funds option selected
  2. Record a Spend Money transaction for the merchant fee. In our example we've allocated the expense to a merchant fees expense account: