What is the best way to account for credit card fees when marking an invoice as paid?

Hey all, new user here, also pretty new to invoicing in general. So I accepted payment for an invoice via credit card. Of course the merchant services company takes a cut, which is fine, but how do I account for that in my invoicing/payments? The invoice is for $150, but after fees I only received $144.27. (Using PayPal until I can get a proper merchant services account set up) If I mark the invoice paid, it shows the full $150 as received. But if I put in the payment as $144.27 it shows the customer as still owing money. Either way seems like it will cause problems for accounting. How do you folks handle this?


You can optionally configure gateway fees in the app on Settings > Online Payments to pass the fees along to the client. Otherwise, I think you’d want to mark the entire invoice as paid.

Hi, while passing the fees along to the client sounds great, I don’t have online payments set up within Invoice Ninja as of yet. Still need a proper merchant services account before I can do that. For now I’m just trying to figure out how to mark in a payment in a way that doesn’t mess up my accounting. If I just mark it paid, it’ll show up as having more income than I actually do.
I suppose I could add a corresponding expense in the amount of the credit card fee, but that’s a lot of extra steps for something that I would think ought to be relatively simple.

Where is this option in V5? I only see it in V4

It’s on the last tab when editing the gateway settings

This is something I think invoice ninja really needs to handle better.

I often take Square payments in person (not online) and that takes a 1.6% cut on my terminal. I don’t have an easy way to account for this fee.

Many other invoicing solutions have options to account for this:

Does invoice ninja plan to introduce something like this? What is the proposed workflow when accounting for fees?

The app supports configuring fees for online payments but not for manual payments.

You may want to create an issue on GitHub to track the request.

Raised, cheers.

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Most gateways provide you with an invoice at the end of the month with all the fees, that you can log into expenses. Is there a reason you want to do it on a per transaction basis?

Just makes it a bit more streamlined to do it on the fly instead of having to remember to get the tally from your provider each month and enter it in. Then if you also need to run a report to see fees incurred for a specific period or see specifics for each invoice it’s easier to do so with that data in invoice ninja. The way you suggested works too but it’s a lump entry under expenses for the month and you have to remember to enter it instead of it being entered at time of payment.