New Transaction Type in QuickBooks Online

Pay Down Credit Card

There is a new transaction type that was added to QuickBooks Online. It’s called “Pay Down Credit Card” and can be found under the + New quick create button above the navigation bar. This was probably added because one of the Top 10 QuickBooks Mistakes that users make is not using a Transfer for payments between accounts, such as an online payment from a checking account to a credit card account. Instead, users have been adding them from Banking as expenses from the checking account and then adding again as credit card credits for the credit card account. Unfortunately, QBO is not smart enough to recognize these 2 accounts already in QuickBooks and suggest them as a Record Transfer instead of an Add. This causes major problems with duplicate transactions.

This new transaction type is great in helping the user choose the right transaction if entered in QuickBooks before it is downloaded and shows up in the Banking page as a match. Previously, it was not fully recognized as a “credit card payment” and showed as “undefined” when matching to the downloaded transaction, but this has been fixed.

Most users that make online payments to credit cards don’t usually enter this transaction in QuickBooks at the same time. Instead, they are entered via Banking after the fact. And unfortunately, this transaction type is not showing as one of the radio button options next to Add, Find Match, and Record transfer and is still suggested as an Add if the pay down credit card transaction wasn’t used. Therefore, the user still can make the mistake of using Add and duplicating the same transaction in both the checking and credit card accounts.

Hopefully, this functionality will be added soon so that this common mistake in QuickBooks Online will no longer be made. It is also missing from the dropdown list for Transaction type when creating a banking Rule.