How To Deduct Credit Card Processing Fees

Get Started with a Free Quote!

Payment Solution

Please select your primary use case. This can always be changed later.

Thanks for signing up.
Please check your email inbox for next steps.
Oops! Something went wrong while submitting the form.

How To Deduct Credit Card Processing Fees

If you want to deduct credit card processing fees as a business expense on your taxes, you’ll need to follow these steps:

  1. Keep Detailed Records: Maintain records of all your credit card processing fees and keep documents like statements, receipts, and other information related to these expenses. Accurate record-keeping is crucial for tax purposes.
  2. Categorize the Fees: Properly categorize all of your credit card processing fees as "merchant fees" or "credit card processing fees,” which will make it easier to write them off on your taxes. 
  3. Prepare Your Tax Return: When you work with your tax professional to prepare your business tax return, ensure that the credit card processing fees are included as a deductible expense on the appropriate tax forms. For example, if you're a sole proprietor, you should report these expenses on Schedule C of your tax return (Form 1040).
  4. Be Aware of Limitations: While it’s usually possible to deduct credit card processing fees as a business expense, there are sometimes limitations or restrictions. Working with a good business accountant will help you understand these. 

Remember that tax laws can vary by location and may change over time, so it's essential to stay informed and consult with a tax professional to ensure compliance with current tax regulations and to optimize your tax deductions.

Discover The Payment Processing Solution That's Right For Your Business

Debit bank accounts via eCheck and ACH
Sign Up
Accept Verified ACH payments and send payouts
Sign Up
Merchant Service
Accept Debit and Credit Card payments
Sign Up

Revolutionize Payment Processing Forever

Start accepting and sending customer payments today.