QuickBooks Payments is an integrated payment processing service offered by Intuit, designed to streamline the way businesses accept payments from customers. It allows businesses to accept various forms of payment including credit and debit cards, ACH bank transfers, and mobile payment options like Apple Pay and PayPal.
This service is integrated within QuickBooks Online and QuickBooks Desktop, enabling seamless synchronization of payment data with accounting records. This reduces manual data entry errors and enhances cash flow management.
Key Features
Easy Integration: QuickBooks Payments integrates smoothly with QuickBooks software, allowing automatic syncing of payment data to financial records.
Recurring Payments: Businesses can set up automatic billing for subscription services, ensuring timely payments without manual intervention.
Mobile Payment Processing: The QuickBooks GoPayments app allows businesses to accept payments on the go using mobile devices.
Invoice Payment Links: Users can create invoices with “Pay Now” buttons that customers can click to pay directly online, simplifying the transaction process.
How to Process Payments
Setting Up
Connect Your Account: If you already have a QuickBooks Payments account, connect it to your QuickBooks software. If not, sign up for a new account.
Configure Payment Settings: Link your bank account and select your preferred payment methods. You can also customize invoice templates with payment options.
Accepting Payments
Online Invoices: Send invoices that customers can pay online by clicking the “Pay Now” link included in the email.
In-Person Payments: For in-person transactions, create sales receipts directly in QuickBooks and process credit card payments using a card reader or manually entering card details.
ACH Transfers: Customers can also pay via ACH transfers, which may require additional setup for security compliance.
Recording Transactions
Once payments are processed, QuickBooks automatically records these transactions in your accounting system. This includes tracking deposits and any associated fees, which helps maintain accurate financial records without additional manual input.
Deposit Times
Funds from processed payments are typically deposited into your bank account within two business days after the initial setup period (which may take up to five business days for the first few transactions). This timeline can vary based on factors such as the type of payment method used (e.g., credit card vs. ACH) and whether the account is new or established.
Security Features
QuickBooks Payments is PCI compliant and incorporates security measures to protect sensitive customer information during transactions. It also offers fraud detection services to enhance security further.
In summary, QuickBooks Payments provides a comprehensive solution for businesses looking to manage their payment processing efficiently while integrating seamlessly with their accounting practices.
QuickBooks Payments is not free; it incurs transaction fees based on the payment method used. Here’s a breakdown of the costs associated with using QuickBooks Payments:
Transaction Fees
Credit Card Payments:
- Swiped Transactions: 2.4% + $0.30 per transaction
- Invoiced Payments: 2.9% + $0.30 per transaction
- Keyed-in Payments: 3.4% + $0.30 per transaction
ACH Payments: A fee of 1% per transaction, capped at $10
These fees apply each time a payment is processed through QuickBooks Payments, meaning that while you can start using the service without an upfront cost, ongoing transaction fees will apply based on your usage and the payment methods chosen.
Additional Considerations
If you opt for instant deposits to your bank account, there is an additional fee of 1.75% on the transaction amount.
Businesses may qualify for discounted rates by requesting a rate review from QuickBooks, especially if they process a high volume of transactions or are non-profits.
In summary, while QuickBooks Payments offers convenience and integration with accounting systems, transaction fees must be factored in when evaluating its overall cost-effectiveness for business operations.
To set up QuickBooks Payments, follow these step-by-step instructions based on your QuickBooks version (Online or Desktop):
Setting Up QuickBooks Payments for QuickBooks Online
Access Settings:
- Click on the Settings gear icon in the upper right corner. Select Account and Settings.
Navigate to Payments:
- In the left menu, click on the Payments tab. Click on Learn more in the QuickBooks Payments section.
Start the Setup:
- Click on Set up Payments.
Fill Out Business Information:
- Complete the form under the Business section with details about your business, then click Next.
Provide Owner Information:
- Fill out the form in the Owner/Proprietor section and select Next.
Connect Your Bank Account:
- In the Payment Deposit section, select Connect a Bank Account (either a QuickBooks Checking account or another bank account).
- If using a different bank, click on Add, search for your bank, and enter your sign-in information to connect.
Review and Finish:
- After filling out all sections, click on Get Set Up. You will receive an email confirming your enrollment within a few business days.
For QuickBooks Desktop
Access Customers Menu:
- Go to the Customers menu and select Add Credit Card Processing.
Follow On-Screen Instructions:
- Complete the application form as prompted to apply for QuickBooks Payments.
Additional Steps
Testing Payments: It’s advisable to send a test invoice to yourself or a colleague to ensure that payments are processed correctly and funds are deposited into your bank account as expected.
Go Live: Once testing is successful, you can start sending invoices and accepting payments from customers.
Important Notes
Ensure that only the primary admin of your QuickBooks account applies for payments.
Review any Merchant Services Agreements sent by Intuit after signing up.
Monitor your transactions regularly to ensure everything operates smoothly once live.
Yes, QuickBooks Payments functions as a merchant account. It allows businesses to accept various types of payments, including credit cards, debit cards, ACH bank transfers, and mobile payments like Apple Pay and PayPal.
When you set up QuickBooks Payments, you essentially create a merchant account through Intuit, which acts as the payment processor for these transactions.
Integration with QuickBooks: QuickBooks Payments is integrated with QuickBooks accounting software, enabling automatic recording of transactions and simplifying the payment process for businesses.
Payment Processing: Intuit Merchant Services handles payment processing, allowing businesses to manage customer payments efficiently without needing a separate payment gateway.
Application Requirement: To use QuickBooks Payments, businesses must apply for and be approved for a merchant account with Intuit. Eligibility criteria apply, so not all applications may be accepted.
In summary, QuickBooks Payments serves as a comprehensive solution for businesses looking to manage their payment processing needs through a dedicated merchant account.
QuickBooks Payments primarily focuses on processing transactions within the United States and does not support direct international transactions. Here are the key points regarding its capabilities for international payments:
No Direct International Transactions: QuickBooks Payments does not accept payments from foreign bank accounts or international credit cards. Attempts to process payments from outside the U.S. will typically result in errors, such as zip code mismatches.
Currency Restrictions: The service is designed to work with U.S. currency, and it cannot process payments in foreign currencies directly through QuickBooks Payments.
Alternative Solutions for International Payments
Third-Party Applications: To handle international transactions, businesses can integrate third-party payment processors with QuickBooks Online. Options like Routable allow users to send payments to over 220 countries and manage transactions in multiple currencies. Other services, such as Melio, also enable payments to international vendors, typically for a fee per transaction.
Multi-Currency Feature: QuickBooks Online’s multi-currency feature allows you to record transactions in various foreign currencies. This feature allows you to manage foreign invoices and payments effectively, although it still requires a workaround for actual payment processing.
Direct Debit Services: Services like GoCardless can receive direct debit payments from customers in over 30 countries, provided you turn on the multi-currency feature.
In summary, while QuickBooks Payments does not directly support international transactions, businesses can utilize third-party integrations and features within QuickBooks to facilitate these payments effectively.