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How to Pay Bills with a Credit Card in QuickBooks

I have a question on how to best handle the following issue in QuickBooks.  I entered a bill and paid a bill with a credit card. Everything was fine at this point, but when I did an EFT from banking/checking to my credit card account it was for $3.00 over the bill amount. Now, in my Pay Bills I have a $3.00 due to the original vendor.  I'm okay with leaving the $3.00 paid on the credit card, I just want to clean up the transaction from staying in my Pay Bills.
The EFT from your checking account to your credit card account shouldn’t have affected your vendor bill at all.  When you pay a bill with a credit card, it increases your credit card balance.  When you pay your credit card bill, it should reduce your credit card balance.  So a $3.00 overpayment should be showing as a negative $3.00 credit card balance on your balance sheet.

Think of your credit card account as a checking account, only in reverse.  Instead of you having money in the bank, you owe money to the bank.  But you want to go through the same process as a checking account.  Enter all your credit card charges as you go along and then reconcile your account once you get your statement.

I can’t know for sure without looking at your file, but I’m guessing you didn’t use your credit card account as the Account on the EFT check.  It’s also possible you didn’t use your credit card account when you paid the bill.  Credit card should be selected as Method and the correct credit card account should be selected in Account.


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Ruth Perryman - QuickBooks Specialist Written by +Ruth Perryman, CMA, CFE, CFM, MBA

Ruth is the president of The QB Specialists, Inc. and has provided QuickBooks help to thousands of businesses around the world since 1996. She is an Intuit Solutions Provider, an Advanced Certified QuickBooks ProAdvisor, and a member of the Intuit Trainer/Writer Network. She is also certified in QuickBooks Point of Sale and QuickBooks Enterprise Solutions.

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