Credit cards have clearly become a preferred mode of transaction among elite customers. In today’s age of unprecedented flow of credit, customers are relying upon their credit cards with new found confidence.
Often, the customer will look forward to making certain purchases. Although, they might not have the necessary finances at the time. Alternatively, their salary might not have been credited. Yet, they do not wish to lose out on their consumption as a result.
As a business owner, how can you accommodate credit card payments which have been made, in your QuickBooks Online account? In this article, we look at the manner in which you can process credit card payments in QuickBooks.
What is credit card processing rate?
The amount that is payable for using the services in the transaction involving QuickBooks and the credit card, is known as the credit card processing rate. The various components of the fee include that levied by the processor, Card Company, and the issuing bank.
The processing rate is usually stabilized at a certain rate, and it is not up for negotiation. Although, there might be instances of a discount being possible. This is when a transaction above a certain level takes place.
Is there a fee for trying to process credit card payments in QuickBooks?
Yes, a nominal charge shall be levied. QuickBooks requires a charge of 2.9% in the case of invoiced cards. Also, there is a transaction fee of $0.25.
Merchants who are willing to accept credit cards as a mode of payment are liable to paying several fees. These include interchange fees, assessment fees, and processing fees. These fees are ultimately collected by the bank that issued the credit card, the processor facilitating the payment, and the credit card payment network.
How to set up your QuickBooks to accept credit card payments?
In order to process credit card payments in QuickBooks, follow the below mentioned steps:
Choose a Payment Processor
QuickBooks integrates with several payment processors, including Intuit Payments, Square, PayPal, and more. Research the options available to you and choose the one that suits your business needs and preferences. You’ll need to create an account with the chosen payment processor if you haven’t already.
Set Up Payment Processing in QuickBooks
Log in to your QuickBooks Online account. You have to then navigate to the Gear Icon. Click on the Gear icon in the upper right corner of the screen to access the Account and Settings menu.
From the menu on the left, select “Payments.” Under “Credit Card,” click on the “Learn more” button to begin the setup process.
Follow the prompts to connect your payment processor account to QuickBooks. You’ll be asked to provide the necessary account information for verification.
Customize Payment Settings
In the Payment Settings section, select the payment methods you want to accept. This can include credit cards, debit cards, and electronic bank transfers. Link your bank account to QuickBooks so that your payments can be deposited directly. Choose the default bank account where your payments will be deposited.
Set Up Payment Options
Customize Payment Links: QuickBooks allows you to create custom payment links that you can send to customers via email. You can include your branding and personalize the message.
Enable Customer Portal: The Customer Portal is a secure platform where customers can view and pay their invoices online. Enable this feature to enhance customer convenience.
Choose Email Preferences: Decide when and how your customers will receive payment notifications and receipts via email.
Add Payment Buttons to Invoices
Generate an invoice for your products or services as you normally would in QuickBooks. While creating or editing an invoice, you’ll find an option to “Add payment” or “Attach a payment link.” This will insert a payment button or link into the invoice. In case you are unable to execute this step, you can fall back upon QuickBooks Customer support.
Send Invoices: Send the invoices to your customers. They can click on the payment button or link to proceed to the payment process. Customers will be directed to a secure payment page where they can enter their credit card information.
Confirmation and Record
Once the payment is processed, both you and your customer will receive confirmation. QuickBooks will automatically record the payment in your accounting records.
- What is an authorization fee?
In a situation where the transaction is carried out without the customer and card being present, extra fees will be levied. The data in this case will need to be verified separately.
2. Who are the parties involved in the credit card processing?
The credit card is processes primarily by the credit card networks. These belong to the likes of Visa, Mastercard, American Express and so on. Also, the process involves the sponsor banks, who provide the money to the merchant, independent sales organizations, and payment processors and facilitators.