How to account for Stripe fees in banking / accounting

Hot_GlassHot_Glass Member Posts: 22

Hi, I'm based in Australia, but this may apply to other countries.

Keen to hear how others handle the discrepancy between and invoiced amount, and the amount paid into your bank, when Stripe take their 0.30c and 1.75% (domestic) cut for processing Wave invoice payments via credit card.

Say an invoice is for $100 + gst (10%) = $110 total invoice.
I imagine the 0.30c and 1.75% will be applied to the WHOLE amount, as that is the amount they are handling.

Payment comes through for AUD$107.77 (fee of $2.23)
How do you manage the fees ?

My initial thought is to just add a receipt for this as a finance charge, putting Stripe in as the vendor ?

Is there GST payable on the fee ?
Hard to say for sure because both Stripe and Wave are based US / Canada respectively, but have offices here in Australia ?

Thanks for anyone chiming in with their experiences, or a Wave admin.


  • Hot_GlassHot_Glass Member Posts: 22

    Thought more about this, and of course the invoice has to balance up too, so . . .

    What about editing invoice after the adjusted bank deposit has been made, and putting an expense line in for the commission ?
    If possible to put an expense line in an invoice, then that would adjust both the invoice to the correct commission paid amount, and put the expense into accounts for tax ?

  • ZoeCZoeC Administrator Posts: 388 admin

    Hey @Hot_Glass, thanks for reaching out and great question! If you are sending an invoice and receiving a payment through Stripe, the amount on the invoice is not going to match the amount you receive in your bank account, so here's what to do:

    1. Head to Accounting > Chart of Accounts > Expenses > Payment processing Fees > Add a new account. You can call this account Stripe Fees.
    2. If you have your bank account connected, this connection will import the invoice payment deposit transaction minus the fees. So head to this transaction and split it.
    3. Categorize the first half of the split as Payment received for an invoice in Wave > select the correct invoice and enter the full amount of the invoice.
    4. Categorize the second half of the split as Stripe Fees and enter the amount of the fees that were deducted from your payment.

    By following these steps you are recording the invoice as Paid and accounting for your transaction fees. Please let me know if you have any questions! :smile:

  • Hot_GlassHot_Glass Member Posts: 22

    Thanks Zoe, I'll check that out when first Stripe payment comes through next week.

    I will check if this accounts for GST difference too, I will still have to pay full GST on the invoice, and check if Strip fees have GST, how this method accounts for these, this will be the deciding factor on how to handle it for me, I guess.

  • AnthonyBrowne_ABCAnthonyBrowne_ABC Member Posts: 0

    Hi guys, I just realised that I may have not have been reconciling my accounts accurately over the past year.

    When I import my bank statements, I usually delete the bank statement entry for an invoice that has been paid via Stripe and therefore already accounted for in Wave transactions. Is this the correct approach?

    Because of the service charge for Stripe transactions, the amount that makes it into my business bank account is not the same amount as on the original invoice. Is there a way that I can record the Stripe fees as an operating expense in Wave so that my account is more accurately reconciled?

    Kind regards


    edited September 16, 2020
  • sheilahashsheilahash Member Posts: 4

    Hey @ZoeC

    I have the same issue. I have a Canadian account and all of my clients are in Canada EXCEPT for 1 U.S. client. He pays view American Express and I bill him in USD. Since Wave does not allow me to take credit card payments on his USD invoice, I've had to resort to billing through Stripe. The problem comes when I am trying to apply the Stripe Payment that shows up in my bank transactions.

    1. what arrives is the conversion [minus] the transaction fees
    2. it won't allow me to apply the payment to his invoice, in fact, when I'm trying to categorize the transaction, his invoice doesn't appear at all!


  • BarsinBarsin Administrator Posts: 1,811 admin

    Hey there @AnthonyBrowne_ABC

    I merged your question into this thread as I do believe Zoe's answer above may help you! Have a look and let me know if you have any other questions.

    Hi @sheilahash

    Thanks for reaching out to Wave support.

    Unfortunately at this time Wave cannot attribute a payment to an invoice with a different currency. What we typically ask of our users to do is simply go to the the invoice and record a payment to their account. This will populate a new transaction in the currency of the invoice. The invoice will also be marked as paid. You can then delete the bank imported transaction that you were trying to associate with an invoice, as there will be redundant income transactions on your transactions page.

    Our team is fully aware of this matter and we're looking into making sure that this type of transaction will be reconciled moving forward!

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