How To Record a Credit Card Payment on an Invoice In QuickBooks Online

This process is unnecessary if your customer pays an invoice online by clicking Pay Invoice in the email sent to them. You can enable online payments by clicking the gear icon in the upper-right corner of the screen, selecting Company settings in the first column, and then clicking Sales.

Click on + New above the left menu bar and then select Receive payment in the first column.

The Receive Payment screen should be completed, as shown in our guide on how to receive payments in QuickBooks Online—except the payment method should be changed to a credit card. Also, just like in the sales receipt form, you will now see an Enter credit card details option since you set up QuickBooks Payments.

Click the drop-down menu under Payment method and select the credit card processor.

Click Enter credit card details to open a window to input the customer’s credit card account information:

• Once the credit card information is entered, click the green Use this info button to continue. The credit card hasn’t yet been charged, and you have 10 minutes to complete the transaction before the credit card information is removed.

  
  

• The Receive Payment screen will now show the last four numbers of the credit card to be charged.

  
  

Click the green Save and close button to process the credit card transaction and charge your customer’s credit card

The credit card payments you received won’t be reflected in your bank account register until the funds are transferred from QuickBooks Payments. Once the funds are in your bank, QuickBooks will automatically record the deposits (matching them with the corresponding transactions) and update the account registers you specified in the QuickBooks Payments options earlier.

Additionally, QuickBooks will account for any processing fees associated with the credit card transactions—recording them separately in the respective account registers. This comprehensive recording process is one of the reasons QuickBooks Online is the overall best small business accounting software.