QuickBooks Credit Card Processing: How It Works, Fees & Benefits

QuickBooks credit card processing, also known as QuickBooks Payments, makes it easier for businesses to accept credit and debit card payments, digital wallets, and ACH transfers directly through QuickBooks. With built-in payment processing and bookkeeping integration, businesses can streamline transactions and reduce manual data entry.

In this guide, learn how QuickBooks Payments works, its fees and benefits, and how to set up and enable online payments in QuickBooks Online and Desktop.

Table of Contents

What is QuickBooks Credit Card Processing?

QuickBooks credit card processing is the payment processing service offered through QuickBooks Payments. It allows eligible businesses to accept customer payments using credit cards, debit cards, digital wallets, and ACH bank transfers through QuickBooks.

With QuickBooks Payments, customers can pay online or, depending on the setup and product, make payments in person. Businesses can then track and manage payment transactions within QuickBooks. This helps keep payment records and accounting information organized.

Transaction Rates for QuickBooks Payments

Here we have provided you with a table that describes competitive transaction rates offered by QuickBooks compared to other providers like Square and Stripe. All of these rates are accurate as of April 30, 2024, and are applied per transaction.

Payment Method	QuickBooks Payment Rate	Square Rate	Stripe Rate
Cards & Digital Wallets	2.99%	3.3% + 30¢	2.9% + 30¢
ACH bank payments	1.00%	1.00%	1.20%
Card reader	2.50%	2.6% + 10¢	2.7% + 5¢
Keyed-in cards	3.50%	3.5% + 15¢	3.4% + 30¢

Important Pricing Considerations

1. Invoice Fees: Stripe may cost an additional 0.4% to 0.5% fee per paid invoice according to your plan.

2. Wallet Restrictions: Square and Stripe rates for digital wallets do not include PayPal or Venmo.

3. Plan Comparability: Only the most comparable payment plans by feature are highlighted in this chart.

What are the Benefits of QuickBooks Payments?

QuickBooks Payments combines payment processing with QuickBooks accounting tools that make it easier for businesses to receive payments and manage their books.

Get paid faster

You can now get your approved funds deposited easily into your account within 2-3 business days. However, the clearance time may vary according to your deposit account.

Automate payments-

Another benefit is that you can collect payments automatically by setting up a recurring sales receipt function. But you can’t use this feature in QuickBooks Online Simple Start.

Reduce Costs-

QuickBooks Payments integrates payment processing with QuickBooks, helping businesses keep payment transactions and accounting records connected. This can reduce repetitive data entry and make it easier to track customer payments.

Integrated Bookkeeping-

The best thing is that now the transactions can be entered automatically into the QBO company file. Thus, it reduces the time spent on manual data entry.

How to Sign Up And Get Started With QuickBooks Payments?

QuickBooks Payments requires an application and approval. Eligibility, pricing, features, and payment options can change, so check the latest QuickBooks information before signing up.

To get the latest updates regarding this service or to apply for it, perform the following steps;

Select the Settings menu and click Account and Settings.
Choose the Payments tab.
After this, click the Find Out More option.

Next Steps After Approval

Once you receive your email approval on how to get started taking payments with your merchant account. Then, you need to connect your account to QuickBooks and enable online payments. Perform the following steps.

Step 1: Connect your QuickBooks Payments account to QuickBooks

Once your QuickBooks Payments account is connected, customers can pay online. Also, they can track and manage payment transactions in QuickBooks.

1.1 Connect your account to QuickBooks Online.

Follow these steps to connect an existing QuickBooks Payments account to QuickBooks Online:

Sign in to your QuickBooks Online account as an admin.
Go to the Settings menu and click Account and Settings.
Select the Payments tab > Connect your QuickBooks Payments account.
Now, choose the QuickBooks Payments account that you want to connect.
Pick the accounts that you want to use for depositing customer payments. You can also change the account if you want to. Then, click Connect.
Choose the Yes, I Understand option from the Changes you might not expect window.
Once completed, click Sign Out and then sign in again to QuickBooks Online.

1.2 Connect your account to QuickBooks Desktop.

To connect your QuickBooks Payments account to QuickBooks Desktop

Open QuickBooks Desktop and select the Customers menu.
Choose Link Payment Service to Company file. If you get a message regarding credit card protection, complete the fields and click OK.
Enter the user ID and password to sign up for QuickBooks Payments. Then, click Sign In.
Tap the Connect option. If you want to transfer your payments account to another company file, click Transfer and then hit Yes, Transfer option.

After connecting your account, you will get an icon on the homepage. This will inform you that you are signed in and connected to QuickBooks Payments.

Step 2: Turn on online payments for invoices

After connecting QuickBooks Payments, you can enable payment options so customers can pay QuickBooks invoices online.

2.1 Turn on online payments in QBO.

You can configure your QuickBooks Online payment settings so customers can pay invoices using the payment methods you make available.

a. Set up account settings for invoice payments

First, browse to the Settings menu and click Account and Settings.
Choose Sales.
Look for Invoice payments and click the Edit menu.
Choose the payment method that customers will use. Here, you can also add the payment instructions to show on your invoices.
Once the changes are done, click Save and then Done.

b. Set up payment methods directly on the invoice

Change the invoice payment methods

Here’s how to print a copy of the receipt through QuickBooks Online Payments

Click on All apps, and choose Sales & Get Paid, then Invoices.
Find the invoice you want to update, then click Edit.
Choose Manage and click Payment options.
After this, turn the switches on or off for the payment methods you want to use.
Select Save or Review and send.

2.2 Turn on online payments in QuickBooks Desktop.

QuickBooks Desktop lets you enable online payment options for all customers or configure payment settings for individual customers.

a. Turn on online payments for all customers

Click the Edit menu and select Preferences.
Choose Payments and then tap the Company Preferences tab.
Pick the payment methods you want to make available to all customers. Then click OK.
Now, click Apply to save the existing customers.

b. Turn on online payments for a specific customer

First, click on the Customers menu and choose Customer Center.
Search for the customer.
To make changes to the profile, select the Edit icon.
Choose Payment Settings.
Pick the payment options you want to make available to the customer and click OK.

Conclusion

QuickBooks Credit Card Processing makes it easier to accept payments, manage transactions, and keep your accounting organized. With flexible payment options and seamless QuickBooks integration, businesses can save time and simplify payment management. By following the setup steps outlined above, you can connect your QuickBooks Payments account, enable online payments, and manage payment preferences for your customers.

Frequently Asked Questions

What is credit card processing in QuickBooks Online?

QuickBooks Online credit card processing lets businesses accept credit and debit card payments directly through QuickBooks and automatically track transactions for easier bookkeeping.

How does QuickBooks credit card processing work?

Customers can pay invoices by card, while QuickBooks processes the payment and records the transaction for easier bookkeeping.

How to enable credit card payments in QuickBooks Online?

Connect your payment account, and enable the desired payment options for invoices to set up QuickBooks Payments.

Can customers pay QuickBooks invoices by credit card?

Yes, businesses can enable credit card payments on eligible QuickBooks invoices.

Does QuickBooks process ACH payments?

Yes, QuickBooks Payments support ACH bank payments, subject to applicable fees and eligibility.

About The Author

Jonathan Browns

Jonathan Brown is a trained QuickBooks professional with 10 years of experience in the accounting sector. Moreover, he is passionate about helping businesses reduce the stress of managing accounts. Also, he is proficient in assisting entrepreneurs and small business owners to use QuickBooks and enhance their accounting experience.