How to Record Credit Card Payments in QuickBooks Online

To record credit card payments in QuickBooks Online, go to the + New menu, select Pay down credit card, choose the right account, enter payment details, and save. This process keeps your credit card liability and bank accounts accurate, making month-end reconciliation easier and ensuring your books always reflect real-time financial activity.

Navigate to the “+ New” Menu

In QuickBooks Online, most transactions start from the “+ New” button.

• Log into your QBO account.
• On the left-hand navigation bar, click + New.
• Under the “Vendors” section, choose Pay down credit card.

This ensures you are recording the payment correctly against the credit card liability account rather than accidentally entering it as an expense.

Select the Credit Card Account

QuickBooks Online requires you to identify which credit card account you are paying.

• In the “Pay down credit card” screen, open the dropdown menu.
• Choose the credit card account you want to record the payment against.

If you haven’t already set up your credit card account in QBO, you’ll need to do that first under Chart of Accounts.

Choose the Payment Method

Now you’ll specify how you made the payment:

• Bank Account: If you paid directly from your business checking or savings account, select that account.
• Check: If you wrote a check, select “Check” and enter the check number for accurate tracking.

This ensures the credit card payment shows correctly in your bank register and during reconciliation.

Enter the Payment Details

Fill in the details of the transaction:

• Payment Date: The exact date you made the payment.
• Payment Amount: The full or partial payment applied to the credit card balance.
• Memo (optional): Notes such as “August credit card payment” can make reconciliation easier.

Save and Close

Once all details are entered:

• Review the information for accuracy.
• Click Save and close (or Save and new if you need to record another payment).

The transaction will now appear in both the credit card account and the bank account, making reconciliations smoother.

Recording a Payment

Let’s say you owe $3,000 on your business credit card, and you pay $1,500 from your checking account:

1. Go to + New > Pay down credit card.
2. Select Business Credit Card from the dropdown.
3. Choose Business Checking Account as the payment method.
4. Enter $1,500 and the payment date.
5. Save and close.

Your records will now show a reduced liability balance of $1,500 remaining.

Bonus Tip: Automate Payments with DepositFix and QuickBooks Integration

If you frequently accept credit card payments from customers, DepositFix integrates with QuickBooks. This allows you to automatically sync transactions, categorize them properly, and even transfer credit card fees to customers. Instead of manually recording every payment, the integration saves time, reduces errors, and ensures your books are always up to date.