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Essentials. We use Square as a card payment method and fees are deducted prior to being transferred to our account.

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Carly-h
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Carly-h
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Essentials. We use Square as a card payment method and fees are deducted prior to being transferred to our account.

We use Square as a card payment method and fees are deducted prior to being transferred to our account.

 

How do I account for this fee? 

They charge varying % depending if tap, chip, swipe or over the phone and also charge/pass on a processing fee from the clients bank? 

One fee is gst free and one has gst applied... so **bleep** confused.

 

we carry this cost, so client pays our amount and we pay the fee off the top of their payment... thank you in advance!

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MYOB Moderator Neil_M
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Neil_M
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Re: Essentials. We use Square as a card payment method and fees are deducted prior to being transferred to our account.

Hi @Carly-h

 

Given there’s such variation in the fees charged you may need to speak with your accountant about how best to record those fees into the file.

 

In terms of recording it into your file, one way that this could theoretically be done, assuming that the fees were going to a separate account and the final amount that appears in the bank reconciliation is after the fee has been deducted, would be to use a clearing account. This would allow you to receive the payment to the clearing account, record the fee as a separate transaction and the use a journal entry to move the balance of the two into the bank account. That said I recommended speaking with your accountant and getting their thoughts on how they would like it recorded

Regards,
Neil

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Carly-h
3 Posts
Cover User
Australia
Carly-h
Cover User

3Posts

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0Solutions

Re: Essentials. We use Square as a card payment method and fees are deducted prior to being transferred to our account.

Thank you for your help, wow super confusing and im starting to think this is not really for business owners but need to be an accountant to run it properly.

I have had to ask so many questions and all seem only to be answered by an accountant...

 

regards

frustrated Carly

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Valued Cover User AndrewStephen
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AndrewStephen
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Re: Essentials. We use Square as a card payment method and fees are deducted prior to being transferred to our account.

Hi @Carly-h

 

Can I ask one question ? so I can provide you with a possible solution.


Do you get a transfer (settlement) at the end of the day for the total amount received less the fees ?
If not can you please give me an example on how you receive the money from Square.

I will wait for your reply, so I don't confuse you with an example that may not be suitableSmiley Happy

 

Regards

Andrew

Carly-h
3 Posts
Cover User
Australia
Carly-h
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Re: Essentials. We use Square as a card payment method and fees are deducted prior to being transferred to our account.

Hi Andrew yes we do receive a day settlement. But in my last two months settlements there were two lines of processing fees each and in one of the invoices the percentage amount was 2.2% and the next line Was 2% and on the other invoice it was 1.37% and 1.73%? Why the variation??? Hahaha
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