Bank Feeds, also known as Online Banking is the helpful and time-saving feature offered by QuickBooks. As you connect your credit card account, QuickBooks downloads and categorizes credit card transactions automatically. It automatically enters the information so that you do not need to enter your transactions manually. All you have to do is connect your credit card or bank account to QuickBooks. To learn how to add a credit card account to QuickBooks Online and Desktop, stick through this guide till the end.
In this detailed guide, we will explain how to add credit card account to QuickBooks Online, QuickBooks Desktop, and the process of adding credit card fees to QuickBooks.
How Do I Add a Credit Card to QuickBooks Online?
To add credit card account to QuickBooks Online, you are required to perform a number of steps. For instance, you need to connect your bank or credit card account. After adding the required details, you can download the latest transaction, categorize the downloaded transactions, and then update the connected accounts.
To learn the entire procedure of how to add a credit card in QuickBooks Online, you can go through the following instructions:
Step 1: Connect Your Credit Card or Bank Account
In QuickBooks, you are allowed to add as many accounts as you want to connect. Both personal and business accounts can be added to the QuickBooks account. However, you will have to sort out the personal payments.
To add or link the credit card account in QuickBooks, you can perform the following steps:
- Click on the “Banking” option or choose the “Transactions” menu.
- Then, switch to the “Banking” tab.
- Click on the “Connect Account” option if it is the first time you are adding the account. Alternatively, you can click on the “Link account” or “Add account” option if you have created one.
- Now, look for the bank. You can connect to any bank even if it is a small credit union.
Special Tip: If you cannot find your bank yet want to upload the transaction to your QuickBooks Online then you can upload the bank transactions manually.
- Hit the “Continue” button.
- Add your username and password that you use for your banking website.
- Follow the instructions given on your screen. Your bank may also require security checks so it may take time to connect.
- Once done, select your credit card or bank account that you wish to connect. It can be savings, credit cards, or current accounts. You will see all the available accounts at your credit card company.
- You should choose a matching account type for each account that you connect. These accounts are on the “Chart of Accounts” in QuickBooks.
- Now, here you can decide how far back you wish your transactions to be downloaded. Some of the banks allow you to download the transaction of the past 90 days while others let you download the transaction from 24 months back.
- Then, hit the “Connect” button.
What if You Don’t Find Your Account?
If you are a new user of QuickBooks Online and not able to find your bank account in the dropdown then you can add it manually. To add a new bank account and credit account, you can perform the following steps:
Adding New Bank Account
- Click on the “+Add New” button.
- For the “Detail Type”, choose the “Current” or “Saving”.
- Now add a name for your account and hit the “Save and Close” button.
Adding New Credit Card Account
- For the “Account Type”, click on the “Credit Card”.
- Now add a name for your account and hit the “Save and Close” button.
Connect Your Bank Account from the Chart of Accounts
Those who already have added the bank account to the Chart of Account but finding issues connecting it then you can connect it later from the Chart of Account to download the transactions automatically.
You can simply follow these instructions:
- Click on the “Accounting” menu.
- Then, go to the “Chart of Accounts” option.
- Now, find your account that you want to connect to.
- In the “Action” column, click on the “Account history” option.
- Hit the “Connect bank”.
- Then, follow the instructions on your screen.
So, in the first step, we have spoken about adding the bank or credit account from the Banking tab and the Chart of Account menu. And, if you are not able to find your bank, we have provided the helpful steps for that too. Now, move to the second step.
Step 2: Download the Latest Transactions
Once you add the credit card account to your QuickBooks Online, it starts downloading the recent transactions automatically so that you don’t need to add them manually.
To refresh or view your recent transaction in QuickBooks Online, you can do the following:
- Click on the “Banking” option or choose the “Transactions” menu.
- Then, switch to the “Banking” tab.
- Click on the “Update” button.
As you follow these steps, you can view your recent transactions that have been downloaded automatically by your QuickBooks account.
Step 3: Categorize the Transactions
Now, you can categorize the transaction that has been downloaded into your account. All you have to do is review and categorize the downloaded transactions using the following steps:
- Click on the “Banking” option.
- Now, choose the tile for an account you wish to review.
- Click on the “For Review” tab.
After following these steps, QuickBooks shares the downloaded transactions. You can review them one after one. This way you can review and categorize the recently downloaded transactions in QuickBooks Online.
Step 4: Update the Connected Accounts
To refresh your connection or update your connected credit cards or bank accounts such as your username and password, you can follow these steps:
- Click on the “Banking” option or choose the “Transactions” menu.
- Then, switch to the “Banking” tab.
- Click on the “Edit” icon for the bank account you wish to update.
- Now, click on the “Edit Sign-in info” option.
- Here, you can update the account details.
- Hit the “Save and connect” button.
Now, you have learned how to add a credit card account to QuickBooks Online. If it is required, you can disconnect your account from online banking. This should be noted that disconnecting the account does not mean it will delete your downloaded transactions or bank account. It will only stop the new transactions to be downloaded to your QuickBooks account.
How to Add Credit Card to QuickBooks Desktop?
QuickBooks Desktop users can also add their credit cards to track their expenses and balances. Besides adding a credit card account, you can also add a bank account to track expenses.
To proceed with how to add a credit card account in QuickBooks Desktop, you are required to select the lists from the Chart of Accounts. Then, click on the Account option and hit the New button. After selecting your credit card option, you can add the account name, credit card number, and save your details.
For step by step guidance, you can do the following:
- Go to the “Lists” menu.
- Choose “Chart of Accounts”.
- Then, click on the “Account” option located on the bottom left.
- Select the “New” button.
- Click on the “Credit Card” option.
- In the “Account Name” box, enter the name of your credit card account.
- In the “Credit Card Acct. No.” box, add the number of your credit card.
- Hit the “Save and Close” option.
Once you save the details, your credit cards will be added to your QuickBooks Desktop account. To inform QuickBooks that you would prefer to work with this credit card account, you can do the following:
- Select the “Lists” menu.
- Choose the “Chart of Accounts” option.
- Double click on the credit card you wish to use.
Doing so, QuickBooks will show you a credit card register to record your transactions. As an alternative option, you can go to the Chart of Accounts screen, click on the Banking menu and choose the Enter Credit Card Charges icon. Now, you have learned how to add a credit card account to QuickBooks Desktop.
How to Add Credit Card Fees to QuickBooks?
There can be two conditions behind adding the credit card fees to QuickBooks. The first one is when you are charged with a fee by the merchant services and the second one is when you charge your customers the credit card processing fee on the invoices.
Condition 1: Add the Fee on the Customer’s Invoice
When your customer pays in full but you are charged a fee by your merchant services for accepting the credit card payment. This fee includes the costs for a job. At this stage, you get a question: how will you add the fee without affecting the balance of your customer.
To handle this, you can add new line items manually on the customer’s invoice. Here are the steps for that:
- On the invoice transaction, go to the empty line located below the “Product/Service” column.
- Now, click on the “Add New” using the “Product or service” drop-down.
- Select the “Service” option.
- In the “Name” field, add the description of a convenience fee.
- Hit the “Save and close” button.
- When you are done, add the “Rate”.
- Hit the “Save and Close” button.
This way you can add the credit card charges. As an alternate step, you can record the credit card charges from the Merchant Service Center directly.
Condition 2: Add the Processing Fee on the Customer’s Invoice
To add the customer’s processing fee on the invoice, you can use the Service item, add the CC fee, choose your account to track the fee, and save the details.
- Click on the “Sales” option.
- Then, click on the “Products and Services” option.
- Hit the “New” button.
- Click on the “Service” option.
- Here, you can add the name of the service item, for example, CC Fee.
- Now, using the “Income account” dropdown, you can choose the account that you want to use to track the processing fees.
- Hit the “Save and Close” button.
This is how you can add the CC Fee on the invoices as the additional item every time you charge the customer with a processing fee.
Summing Up
Adding the credit card account in QuickBooks is essential so that it can download the transactions automatically and then you can categorize them. Here, you have learned how to add a credit card account to QuickBooks Online and Desktop effortlessly. Besides that, we have given the procedure of adding single or multiple credit cards in QuickBooks. The guide also covers the steps for adding the processing fee on the customer’s invoices and the fee you are charged by merchant services.
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