Recording TWINT, PayPal, and credit card fees correctly
How to record payment method fees in your bookkeeping — TWINT, PayPal, Stripe, and other services. With practical examples for your Swiss sole proprietorship.
Why this matters
Payment processing fees are deductible business expenses. If you overlook them, you overpay taxes. For a sole proprietor processing CHF 100,000 through PayPal or Stripe, the fees are roughly CHF 2,500–3,500 per year — money that should reduce your taxable income.
Correct recording
Record the gross amount as income and the fee as a separate expense. Example: client pays CHF 1,000, PayPal deducts CHF 29, CHF 971 arrives in your bank account. Income: CHF 1,000. Expense (payment processing fee): CHF 29. This is clearer than just recording CHF 971 — and the tax office expects the gross method.
Where to find the fees
PayPal: monthly statement showing total revenue and fees. Stripe: dashboard or API showing every transaction with exact fees. TWINT: transaction list showing the net amount; the fee is the difference from the invoice amount. Your bank: transaction list, usually with fee breakdown.
Frequently asked questions
- Can I deduct payment processing fees even with cash-basis accounting?
- Yes. The fees are deductible business expenses regardless of the accounting method. They must be recorded in the year they were incurred.
- Do I need to keep payment provider statements separately?
- Yes, alongside your regular receipts. Download monthly statements from PayPal, Stripe, or your payment provider and store them with your bookkeeping records for the retention period.