How-to Guide for Accepting Payments with QuickBooks
This guide shows you how to accept payments through QuickBooks Online. It’s useful for receiving payments from customers. With the right approach, apply customer payments to your invoices, reducing accounts receivable. Receive payments by credit card, debit card, ACH bank transfer, or PayPal. Your suppliers accept payments when you’re using the Tipalti AP automation app for QuickBooks Online.
This article includes screenshots from a QuickBooks Online video. The YouTube video title is How to Set Up QuickBooks Payments | QuickBooks Online. It’s dated November 6, 2019.
Using the Tipalti Accounts Payable Automation App for QuickBooks to Pay Supplier Invoices
Both small businesses and medium-sized businesses use QuickBooks Online bookkeeping and accounting software. Intuit owns QuickBooks and TurboTax.
The QuickBooks receive payments service is very affordable for its small business users. QuickBooks Online charges a transaction fee for credit card payments, debit card payments, and ACH payments. As you can see in the linked Intuit QuickBooks web page, transaction fees for QuickBooks Online vary by the type and method used. ACH bank transfers, card swiped, card invoiced, or card keyed have different processing fees. (Rates differ for QuickBooks Desktop users.) You’ll find out how to process credit card payments in QuickBooks Online.
Tipalti is an accounts payable automation application, which integrates with QuickBooks Online and QuickBooks Online Advanced. Use Tipalti with your regular QuickBooks Online login and software interface. Tipalti handles the entire accounts payable processing workload. It automates payments to suppliers and vendors. Using Tipalti saves you up to 80% of accounts payable processing time. It shortens time to close the financial books by 25%. Tipalti is available as a SaaS subscription with a monthly fee.
How Do You Set Up QuickBooks Online to Accept Payments?
Accepting payments through QuickBooks Online is easy. To automatically match and apply customer payments to invoices, use the Payments feature. Don’t enter the customer receipts as deposits.
To use the Payments feature, register with Intuit through your QuickBooks Online software.
Intuit Merchant Services is the payment processor. This Fiserv article explains the difference between a payment gateway and a payment processor. Online stores use payment gateways for e-commerce. This article from the payment gateway company AmeriCommerce is a how-to, step-by-step guide on “setting up the Intuit QuickBooks Payment Gateway. A payment gateway allows your online store to connect to your merchant bank account. It acts as a ‘virtual terminal,’ as opposed to a card-swipe terminal.” If you need a payment gateway, you can set it up after you get your QuickBooks Payments account to receive customer payments, as described in this guide.
You may already have a merchant account with Intuit’s Merchant Services or GoPayment. You still need to follow this process to connect it with QuickBooks to accept payments from customers.
To start receiving payments in QuickBooks Online, click the Settings gear icon on the top right side of the QuickBooks Online toolbar.
When the Settings menu opens, choose Accounts and Settings, then Payments. You’ll see this screen:
You can accept payments through QuickBooks, emailed online invoices, and mobile. Mobile devices include your iOS or Android phone or tablet. The bank transfers are ACH payments.
If you’re already using Intuit Merchant Services or GoPayment for payment processing, press the Connect button. Otherwise, press the Learn More button to set up Payments through QuickBooks Online.
The next screen labeled Business lets you enter business information in a form. The second screen labeled Owner/Proprietor is a form for entering owner information. To verify your business, Intuit uses business and owner information.
The third screen, labeled Bank, asks you to connect to your bank account (by entering your bank username and bank password). QuickBooks asks you to enter the bank account into which payments will be deposited. In the Bank screen, Intuit states:
“By selecting Next, I authorize Intuit to debit my bank account on file for payments services fees on a daily basis, starting the day after my first transaction. I can cancel at any time in my QuickBooks account settings.”
You’ll see another Intuit notice near the bottom of the Bank screen and the next screen:
If you agree, press the Activate Payments button. That completes the process of signing up for accepting QuickBooks Payments. QuickBooks will send you an email within about the next two days when you’re approved for using the service.
You’ll receive your first customer payment in your bank account within five business days. After you receive your first payment, you’ll get customer payments much quicker to help your cash flow. That’s by the next business day (or even the same business day for eligible accounts).
The following screenshot shows how you can use QuickBooks Payments:
Accepting Payments Online through QuickBooks
For online payments, you can select your favorite payment type and send invoices to your customers with a Pay now button. You can set up recurring invoices and recurring sales receipts for recurring customer payments.
Choose to accept PayPal payments by issuing eInvoices with QuickBooks Online.
The Tipalti AP automation app for QuickBooks Online provides the interface portal for suppliers to onboard themselves. Vendors enter their contact information. Then they upload tax forms, upload invoices, and select their preferred payment method. Self-service supplier onboarding saves your accounts payable department a significant amount of time. It also increases data accuracy.
Accepting Card Payments in QuickBooks Online
You have choices in how to accept card payments through QuickBooks Online (credit or debit).
If you don’t already have the point of sale equipment, Merchant Services will send you a free mobile card reader for receiving mobile payments. You can request the free mobile card reader from a link in your QuickBooks Payments approval email. Use this QuickBooks point of sale device for customer card processing. Insert chip cards, swipe, or tap to capture customer debit or credit card information and processing.
QuickBooks card payments options available through Intuit payments include:
- American Express
- Apple Pay
- Bank cards
Besides credit and debit card transactions, you can choose ACH payments to receive payments from customers that you’ve invoiced. You may also want to check out our guide to understanding how much Quickbooks charges to process credit & debit card payments.
QuickBooks Payments Review
We’ve covered how to set up QuickBooks Online Payments through Intuit Merchant Services in this guide. Our simple explanations include step-by-step screenshots. We also give you a link for how to set up a payment gateway if you need to for your online e-commerce shop. You can accept and receive online payments, including PayPal, in-person payments with a mobile card reader, or debit or credit card numbers manually keyed in. You can also accept ACH payments from customers.
By automating your accounts payable with the Tipalti app for QuickBooks Online or QuickBooks Online Advanced, you’ll have significant time savings and labor savings that favorably impact your cash flow. When using Tipalti AP automation, remember to let your suppliers and vendors know about this guide for receiving payments in QuickBooks Online.