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Last modified on 10/29/2019 5:28 PM by User.

Alternative Credit Card Processing Fees




When a payment is received from a customer through Visa and Master Card the whole amount is deposited into your bank account.  Then once per month you receive a statement and a charge into your bank account for the previous month’s credit card processing fees.  This type of credit card processing fee is typically handled through an A/P voucher paid by an EFT or a manual journal entry in the G/L module. 


With other methods of payment like American Express or PayPal the credit card processing fee is taken “off the top” of each transaction.  For example: if a customer pays $100.00, instead of $100.00 deposited into your bank, you might only get $97.00 deposited.  Profits Plus doesn't automatically adjust for this fee taken off the top; therefore it must be done manually.

With PayPal you can look online at your PayPal account to see the payments received (even before it is in your bank account).  When each payment shows up on your PayPal account it shows the amount of the payment, the amount of the PayPal processing fee & the net amount. 


For example: in order processing, the invoice is for $100.00 & the payment is for $100.00.  When the invoice is already posted all the way into A/R and the payment is posted into A/R Task 2 Cash/Receipts entry & editing the payment is for $100.00.  If the payment method takes the processing fee off of the top, the payment may actually be for only $97.00.  If using PayPal, the online PayPal account will show the $100.00 payment, the $3.00 charge and the $97.00 net.  This document explains how to get the $3.00 processing fee into the system, into A/R to show the correct $ amount of receipts going into your checking account. 


Before starting this procedure: Go to -

  • Accounts Receivable (Module 2)
    • System Management Functions  (Task 32)
      • Modify Parameter Files (Sub-task 22)
        • A/R General (Option 1)
          • Look for the parameter:    POST'TO'AP=N     it should be set to N.  This indicates that deposits should not post automatically to the A/P check account.


Note:  This action will affect ALL A/R deposits.  If using the Checking Account functionality, then ALL deposits will have to be manually entered into the Check Account (Task 20) in A/P.

Step 1.

  • If using PayPal, go online to see the actual fee taken out of the transaction. 
  • If using American Express or ProPay, if able to go online to see the actual fee take out of the transaction do so.  If not add up the credit card slips and calculate the percentage that the bank is going to take off.

Step 2.

  • Accounts Receivable (Module 2)
    • Cash Receipts Entry & Editing (Task 2)
      • On the same day the American Express or PayPal transactions are accepted as payment, enter a transaction for the percentage (or actual amount) that the bank is going to take off. 
        • Use customer #99999
        • In field #14 (G/L act #) Enter in the G/L # that is used for bank charges or credit card charges from bank. 
        • In field #15 (G/L act $) Enter in the (given or calculated) amount, as a negative.
      • This can be done daily, weekly or monthly
        • If you go online daily to find out the actual amount being taken out of each transaction, you may make this transaction daily.  This could be done on the same Cash/Receipts edit/posting as the original. 
          • For example: The invoiced order holding file was posted with the $100.00 invoice & payment.  The A/R Task 1 Sales entry & editing was posted with the $100.00 invoice.  Now the A/R Task 2 Cash/Receipts entry & editing with the $100.00 payment AND you added a new transaction to that, the $3.00 negative, is ready to be posted on the same posting.  So the Total Change to A/R would show $100.00, but the Total amount received would show $97.00. 
        • To do this weekly or monthly, you could go online every Monday & look at all the transactions done the previous week with PayPal.  Add up all of the previous weeks PayPal charges.  In this example let us say the $100.00 payment is the only one for the whole previous week.  The $100.00 payment would already have been posted. So now you would enter the $3.00 (or the total of the previous week) negative all by itself. The Cash/Receipts posting Total change to A/R on this posting would be zero. The Cash/Receipts posting Total Amount received would be negative 3.00 (or the total of the previous week as a negative). You would need to cutoff at month end & make sure you get all of the processing fees posted before A/R is closed or interfaced into the G/L module for the month. 

Step 3.   If Profits Plus is used to reconcile to the bank statement.

  • Accounts Payable (Module 3)
    • Check Account (Task 20)
      • Enter New Check Record (Sub-task 1)
      • Deposits are entered each day.  The deposits for American Express or PayPal should be minus the processing fee.  So for our example the deposit would be for $97.00 not $100.00.  The deposit on the bank statement will show $97.00 not $100.00.
      • If calculating the processing fee each day: when balancing to the bank statement at month end, if the processing fee is different than what you calculated, a transaction #1 CC charge from bank will need to be entered into Task 20 Check account for the difference.  Then a manual journal entry would need to be made for the difference.


NOTE:  If these procedures are followed & the actual real amount for the processing fee is used, a manual journal entry or an A/P voucher isn’t needed for these processing fees.