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Vendor Transaction Fees

jc102jc102 Member Posts: 1

Hello,

I have a quick question about transaction/merchant fees. I accept credit card payments online and my merchant charges a variable merchant fee. I also resell a service online. In order to resell the service, I have to deposit funds into my account with the vendor, and they charge a transaction fee to make deposits.

Currently, I have been accounting for both fees as simply Merchant Fees. Would it be a better practice to separate the two since one is a fee for accepting payment (income) and the other is a fee for depositing funds for use with a vendor?

Thanks in advance!

in Accounting Technical Support

Comments

  • Ellie_Writes_ThingsEllie_Writes_Things Member Posts: 42 ✭✭

    It's really up to you. It's probably better to separate them since better info is always better, but it's really up to you. As long as your numbers are good in the end, it's all fine, @jc102

    Short version, ask yourself if you want to be able to keep track of both of those fees separately or not.

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