Credit Card Payment Error


(Canada)

OOPS, I paid my credit card bill twice!

OOPS, I paid my credit card bill twice!

I paid my credit card bill twice so now I have balance on my credit card. How do I record the extra payment?



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You didn't say what accounting software you are using. These instructions are for QuickBooks Online.


Step 1: Click on the Quick Create Menu (see the second image at the top of the posting) ... the "+" sign at the top of your screen. Once you click on it and the menu opens up, the "+" changes to an "x".

Step 2: Under Suppliers, click on Credit Card Credit. Make sure you are on the CREDIT form (second from the bottom of the suppliers' list) not the EXPENSE form.

Step 3: Complete the form. Under account details, select the account you made the second payment from. (See the third image at the top of posting.) Make sure you make a good memo note explaining the problem. Don't forget to save and close your entry.

Step 4: Relax knowing you won't have to pay your credit card bill for a bit as you now have a credit balance ... or phone the credit card company and ask if they could reverse/return the second payment.




Editor's note: The question was amended as it wasn't clear what was being asked.

Comments for Credit Card Payment Error

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Jan 20, 2016
 Simple Answer
by: Mike

In case the OP is just looking for an answer not related to software...

2 options:

Your credit card account is a liability account. It would normally have a positive credit balance. That balance is what you owe on the card. If you paid the balance, your account balance would be 0. If you made another payment, you would just credit cash and debit that account again, and that would cause your credit card account to have a negative balance in the books.

If you don't like negative account balances, another option is to create a new account for your credit card in accounts receivable, since at this point they actually owe you money. Future credit card entries would go here until the balance goes to 0, then return to the liabilities account.

I would go with the first option myself.

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