Disclaimer – Here, we will understand the recording and credit card processing in QuickBooks Online. Now, accepting customer payments electronically to manage invoices online is effortless and takes less time. Learn here how to do so!
Are you striving to run your business with optimum growth and maximum profits? Well, who won’t? We all do. QuickBooks Online is helping thousands of businesses across the globe to achieve such targets. This online application helps businesses in a number of areas, including card processing and electronic payments. Today, in this post, we will discuss and understand everything about credit card processing in QuickBooks Online, its different ways, and also how to record payments by credit card.
If you need any professional help or supervision to understand credit card payments in QuickBooks Online, call our team at 1-833-210-4702 and get immediate help.
A Brief About Credit Card Processing in QuickBooks Online!
Well, it’s great news for all the business financers, accounts, and other professionals using QuickBooks Online. The credit card processing in QuickBooks online helps in processing and authorizing all the significant business credit and debit transactions. Within the application only, users get automatic updates about all the payment information. Credit card payment processing in QuickBooks online helps one avail a number of benefits including, stable business growth, faster and safer payments, automatic transactions, time and money-saving, etc.
How to Take and Process Payments in QuickBooks Online?
The credit card payment process is an effortless task with QuickBooks online. You can easily process payments and manage customer invoices online within a few steps. There are two simple methods to take and process payments in QuickBooks Online. Carefully perform the instructions below:
Method 1 – Issue your Customer’s Sales Receipt
To use this method, you need to enter your credit card account details. Along with this, you must issue your customer’s sales receipt. Now, start following the given below steps:
- Firstly, click the +New button to make a new sales receipt.
- Now, open your QuickBooks online application and search for the Customers option.
- Once you search it, click the option and further select the Sales Receipt option.
- Moving on, click the Payment Method button and then select the credit card payment form.
- Right after this, you will see a field saying, “Enter Credit Card Details.” Click this field and move to the next step.
- Now, you must enter all the required information related to your credit card account.
- Done? After this, continue to select the Use this Info alternative.
- Here, you must wait for at least 10 minutes till the credit card payment process successfully ends in QuickBooks online.
- Afterward, again, add all the required information to the sales receipt you have created.
- On the next screen of the sales receipt, you must verify the last four digits of your credit card’s number.
- Once you verified the correct digits, now click the Save and Send option and open the sales receipt by clicking the Sales option.
- Now, move to the All Sales option and search for the transaction receipt you have created.
- After this, ensure the Transaction is processed status and then click the Transaction processed alternative.
- Finally, you must opt for either Refund or Print option. By doing this, you will successfully end the process of taking and processing payments in QuickBooks Online.
Method 2 – Add Financial Details to the Online Invoice
The next method is to add all the required financial information to the online invoices. While credit card processing in QuickBooks Online, it’s essential to provide the necessary information in the invoice. Here’s how to do so:
- Begin this method by first logging into your QuickBooks online application.
- Once logged in, now choose the +New option and then select the Receive Payment option.
- Right after this, move to the dropdown menu and select the Payment Method option.
- After this, you need to choose a processor for your credit card account.
- In the next step, continue to enter your credit card details. By this, a new window will open in which you need to enter your bank account information.
- Now, you need to hit the Use this info tab and continue waiting till the transaction finishes. You must wait around 10 minutes.
- In the final step as well, you must verify the last four digits of your credit card. Finally, choose the Save and Close option.
Steps to Accept Credit Card Payments in QuickBooks Online
The world has gone digitized in every field, and if we talk about payment modes. More than half of the world’s population is making payments and transactions online. QuickBooks Online provides credit card payment acceptance access to help business professionals more. Below, we have explained the quick procedure to learn how to accept credit card payments in QuickBooks Online.
- Initially, open your QuickBooks online application and choose the +New option.
- After this, hit the Receive Payment or the Review Invoice payment option.
- By this, you will see specific fields where you need to enter the required customer payment date and related details.
- Done? Now, navigate to the specific Outstanding Transactions section and continue choosing the open invoice tab to apply for the Payment.
- Make some changes, if required, and then move to the specific payment method from the dropdown menu.
- Here, choose the Credit Card option and choose the Add Credit Card details option.
- Now, provide the required and exact credit card details and choose the Process Credit Card option.
- Afterward, click the Save option and finally end this procedure by choosing the Save and Close option.
By this, you will successfully accept credit card payments in QuickBooks Online whenever required.
Moving on, let’s have a quick discussion about the processing fee of credit card payments in QuickBooks Online.
What’s the Cost of QuickBooks Credit Card Processing Fee?
While using QuickBooks Online to make and accept credit card payments, a certain fee known as QuickBooks credit card processing fee is chargeable. Well, not only in QuickBooks online, but whatever mode you use for credit card payments, there is a processing cost.
For QuickBooks users, it’s essential to know that QuickBooks has three specific modes for the credit card payment process with different processing fees. Have a look:
Swiped Credit Card:
Both QuickBooks Desktop and Online have different credit card-swiped processing fee plans. The QuickBooks Online plan costs 2.4% of the entire credit card transaction, along with $1.92. On the other hand, the Desktop plan of pay-as-you-go using credit card costs equal to 2.4% and an extra $2.3. In addition, its monthly QuickBooks credit card processing fee plan charges 1.6% of the entire Transaction + $2.3.
Keyed Credit Card:
The QuickBooks Desktop credit card keyed processing fee in the pay-as-you-go plan is 3.5% + $2.3. Also, its monthly plan charges 3.5% + $2.3. Here, QuickBooks Online charges around 3.4% of the entire Payment plus $1.92 whenever your credit card is keyed.
Online Invoiced Credit Card:
While making transactions via QuickBooks Online credit card, you need to pay 2.9% + $1.92 of the total QuickBooks credit card processing fee. However, the Desktop’s pay-as-you-plan costs 3.5% of the entire Transaction and an additional $2.3 as well. Its monthly plan costs 3.3% and an extra $2.3 credit card processing fee.
QuickBooks Credit Card Processing Fee: Pros & Cons
As discussed above, whenever and through any mode you pay or accept Payment via credit card, you will be charged a specific amount. But, there are a few advantages and disadvantages as well from QuickBooks credit card processing fee. Below, we have mentioned some of them:
The Pros:
- Credit card processing fees in QuickBooks help fund some crucial amounts to protect against worst scenarios like fraud or scams.
- The fees also help in situations like increasing credit card access.
- For the benefits and rewards of cardholders, this fee plays a vital role.
The Cons:
- Sometimes, high-interest charges become one of the disadvantages of processing fees.
- Additional expenses, including foreign transaction fees and annual fees, also come under the disadvantages for cardholders.
- One of the major demerits is the cash withdrawal expense.
Different Components of QuickBooks Credit Card Processing Fee
It’s true that there is a huge impact of credit card processing in QuickBooks online fees on one’s business financial management. Take a look at the below-given factors for better insights:
Merchant Account Fees:
Merchant fees are the first component of QuickBooks credit card payment processing fees. This component is further divided into two categories: Monthly fees and Transaction fees.
- Transaction Fees
The applied charges while processing any payment through QuickBooks Online credit card are the transaction fees. This fee is equal to the percentage of the entire transaction amount, along with the flat fee. Usually, transaction fees range between 2.3% and 3.5% of the transaction amount and an additional $0.25 to $0.30 per Transaction.
- Monthly Fees
QuickBooks is associated with numerous payment processors, and many of them charge a cardholder during credit card processing in QuickBooks Online. It’s called the monthly fee, which further has subscription costs and monthly statement fees. In addition, the monthly fee always depends on the payment gateway.
Payment Gateways Fees:
A payment gateway defines the connection between your QuickBooks online application and the payment processor. These gateways transmit all your Payment or Transaction details and charge some, including Gateway monthly fees and Gateway setup fees.
- Gateway Monthly Fees
The gateway monthly fees are the charges of the services of the payment gateways via which you make credit card transactions.
- Setup Fees
The payment gateway setting fees for credit card processing in QuickBooks Online is a one-time fee and ranges between $0 to $100. Different gateways charge specifically for payment setups.
Compliance Fees by PCI DSS
PCI DSS refers to Payment Card Industry Data Security Standard. The PCI DSS compliance basically saves a cardholder’s confidential and sensitive information and details. A number of QuickBooks payment processors cost this PCI DSS fees. You may be charged between $5 and $20 monthly for this.
Miscellaneous Fees
Miscellaneous fees are of different types. Just like the other fees, the miscellaneous fee also depends on your chosen QuickBooks payment processor. Along with this fee, you may be charged batch processing fees, statement fees, and Address Verification Service (AVS) fees.
Chargeback Fees
At the time when a customer rejects any credit card transaction in QuickBooks Online, chargeback fees are applied along with the credit card processing fee. Mostly, these fees range between $15 to $50 per dispute payment. All the administrative costs of chargeback fees dispute comes under this.
How to Record Your Payments to Credit Cards in QuickBooks Online?
With multiple seamless ways, you can record your payments to credit cards in QuickBooks online. QuickBooks Online is an excellent option for recording your credit card payments, tracking your expenses, and maintaining accurate financial records.
Below, we have given two easy methods that will help you record payments to your credit card:
#1 Method – By Paying down a Credit Card
- Begin this method by first opening your QuickBooks application and directly choosing the +New tab.
- Right after this, go to the Money Out tab and choose the Pay Down credit card alternative. After this, select the credit card that you use to make payments.
- Now, carefully enter the payment amount and date of the Payment, and choose the bank account that you use to pay the credit card amount.
- Here, if you made your credit card payment through a check, choose the “I made a payment with a check” alternative.
- Enter the check number in the given field. But if you have paid the amount online/electronically, provide the EFT number.
- But if you wish to add any file attachments, choose the Attachments option by following the given on-screen instructions.
- Finally, end the complete procedure by hitting the Save and Close option.
#2 Method – By Writing a Check
- Start this method by first selecting the + New tab in the QuickBooks application.
- Now, navigate directly to the Vendors tab; under this, you must choose the Check option.
- After this, come to the Payee field, and from here, select your Vendor name to record your payments to credit cards in QuickBooks online.
- Following this, move to the Bank Account field, where you must choose the account that you will use to make the Payment.
- Done till this? Now, enter the mailing address linked to your credit card account and choose the payment date.
- Coming to the Check no. field here, you must enter the check number or EFT if your Payment is made electronically.
- In the next step, you must remove the tick mark from the Print Later box. (It’s when your check is already issued)
- After this, you must provide the Category details and the credit card payment amount.
- Following this, make sure to enter a description plus the amount. Also, don’t forget to enter notes under the Memo field.
- Finally, click the Save and Close option to end the entire procedure.
What are the Benefits of Credit Card Processing in QBO?
It’s high time to evolve and switch from accepting cash payments. The entire landscape of normal to business-oriented transactions has changed. For businesses seeking growth and further benefits, credit card processing in QBO must be an option. Below, we have mentioned the topmost benefits of credit card payment processing in QuickBooks Online.
It keeps your business up with growing competition.
Today’s business industry is all about cut-throat competition and growing trends. One of the easiest methods for a business to stay on top is offering their customers easy and convenient payment options. With modes like credit card processing in QuickBooks Online, it gets easier for both businesses and their customers to manage payments and transactions.
Credit card processing improves business cash flow.
As we all know, credit card transactions are processed electronically, so it’s quite easier, safer, and faster as well. The amount directly gets deposited into the merchant’s account, and the entire process between a cardholder and a merchant is seamless. Additionally, with QuickBooks credit card payments, everything from cheque clearance, invoice collection, and bill management to counting and transporting money is quick, efficient, and hassle-free.
Automatically grow your client base.
One of the most exciting perks of credit card processing in QBO is increased sales and expanded client base. Also, these days, e-commerce is growing faster and everyone prefers to quickly shop and pay online. That’s why businesses started offering payment modes like credit cards to eventually boost their sales and grow their client base.
One of the most convenient options.
In today’s busy era, people look for fast services with the easiest and most convenient payment methods. QuickBooks Online credit card payment service does this and more. That’s the reason why businesses provide their customers with credit card payment mode, as all it takes is just a swipe or a tap to make payments.
Credit Card processing in QBO is easy.
Setting up credit card payment mode in QuickBooks Online and using it is easy and uncomplicated. In addition, the application for the merchant or business account is processed quickly and the entire system starts working within 24 to 48 hours.
Let’s Wrap Up. Contact Us for More..!
Now that you’re aware of credit card processing in QuickBooks online, how it’s done, its chargeable services, and the excellent perks, manage your business cash flow with QuickBooks credit card processing feature. Automate your business cash flow and minimize manual efforts with QuickBooks Online credit card payment acceptance. If you have any queries or issues regarding this, connect with our support team via Live Chat Support.
Frequently Asked Questions
Ans: To record your credit card payments processed outside the QuickBooks application, you must carry out the procedure below:
1. Firstly, begin this procedure by opening your QuickBooks application.
2. Now, directly move to the Get Paid option and then choose the Invoices alternative.
3. Right after this, you need to look for the unpaid invoices (if any). Once done, now continue to select the Receive payment option.
4. In the next step, you must move to the Deposit tab from the dropdown menu and then click the account in which you have made your Payment.
Ans: With the help of the steps below, you can ensure the successful credit card payment process:
- Firstly, log in to your QuickBooks online application and continue choosing the Sales Receipt alternative.
- In the next step, choose a specific sales receipt and search for the All Sales feature.
- Once you find it, click the same, and it will display all the receipts of your specific QuickBooks Online transactions.
- Here, you will also find the status of your credit card payment and verified successfully processed credit card payment.
Ans:
- QuickBooks costs 2.4%, plus a flat fee of $0.25 per Transaction for swiped credit cards.
- 3.4%, plus a flat fee of $0.25, is for keyed credit cards on every Transaction.
- For each Transaction via invoiced credit cards, QuickBooks charges 2.9%, plus a flat fee of $0.25.
Ans:
- Faster payments
- Optimum business growth
- Cost-efficient
- Saves time
- Automatic and secure payments
Ans: If you need any additional help regarding credit card processing in QuickBooks online, give us a call or reach out to our experts via Live Chat Support.