PayPal, TWINT & Credit Cards: How to Record Them in Your Bookkeeping

As a self-employed person in Switzerland, you often receive payments via PayPal, TWINT or credit card. The challenge: fees are deducted before the money reaches your account. How do you record this correctly in simple bookkeeping (income-expenditure method)?

01Basic Rule: Record the Gross Amount

The gross amount -- what your customer actually paid -- is your revenue. The payment provider's fee is a separate expense. In your income-expense statement, you record both separately. Never just record the net payout as revenue -- the tax office wants to see the full amount.

Principle: Record the gross amount, book the fee separately as an expense. The net amount in your account is NOT your revenue.

02Fee Overview

Payment Method	Typical Fee	Example at CHF 100
TWINT (Business)	approx. 1.3%	CHF 1.30 fee → CHF 98.70 payout
PayPal	3.4% + CHF 0.55	CHF 3.95 fee → CHF 96.05 payout
Credit card (Stripe)	2.9% + CHF 0.30	CHF 3.20 fee → CHF 96.80 payout
SumUp	1.49%	CHF 1.49 fee → CHF 98.51 payout

Exact fees vary depending on your contract and transaction volume. Check your statements regularly.

03How to Record Payments Correctly

Example 1: TWINT Payment

Customer pays CHF 200 via TWINT. TWINT fee: CHF 2.60. Payout to your account: CHF 197.40.

Record income: CHF 200.00 (gross invoice amount)
Record expense: CHF 2.60 (TWINT fee, category 'Bank charges')

Example 2: PayPal Payment

Customer pays CHF 500 via PayPal. PayPal fee: CHF 17.55. Payout: CHF 482.45.

Record income: CHF 500.00 (gross invoice amount)
Record expense: CHF 17.55 (PayPal fee, category 'Bank charges')

Example 3: Credit Card Payment via Stripe

Customer pays CHF 1,000 by credit card. Stripe fee: CHF 29.30. Payout: CHF 970.70.

Record income: CHF 1,000.00 (gross invoice amount)
Record expense: CHF 29.30 (Stripe fee, category 'Bank charges')

04Foreign Currencies

PayPal payments often involve foreign currencies (e.g. EUR or USD). In simple bookkeeping the rule is: record the CHF amount that actually arrives in your bank account. Any exchange rate differences are already included in that amount.

Watch out for PayPal balancesIf you leave money in your PayPal account, it still counts as income at the time the customer paid -- not when you transfer it out. Transfer to your bank account regularly to keep a clear overview.

05VAT and Fees

If you are subject to VAT: fees from PayPal, TWINT and credit card providers are VAT-exempt (financial services). You therefore cannot claim input tax on them. You calculate VAT on the gross invoice amount -- before deducting the fee. Learn more about bookkeeping obligations for self-employed professionals in our separate article.

Clean bookkeeping with einzlyIn einzly you record income and expenses separately -- including fees from PayPal or TWINT. This way your bookkeeping is always accurate.

06Frequently Asked Questions

Yes. The gross amount is your income, the fee is a separate expense. This is the only way your bookkeeping matches your bank statements.

Record the CHF amount that arrives in your bank account. Exchange rate differences are already included.

No, fees for payment services are VAT-exempt. You cannot claim input tax on them.

In simple bookkeeping the cash basis principle applies. Record the income when the money arrives in your account. For PayPal, ideally when it is paid out to your bank account.