QuickBooks Payments

What is QuickBooks Payments?

QuickBooks Payments is Intuit's integrated payment processing service that allows businesses to accept credit cards, debit cards, ACH bank transfers, and digital wallets directly within the QuickBooks ecosystem. The service eliminates the need for separate payment processing accounts by combining payment acceptance with QuickBooks' accounting and invoicing features. Payments are automatically recorded in QuickBooks Online, reducing manual bookkeeping and ensuring accurate financial records. Money movement services are provided by Intuit Payments Inc., licensed as a Money Transmitter in applicable states.

Payment Methods Accepted

QuickBooks Payments supports a wide range of payment options. Customers can pay invoices online using Visa, Mastercard, Discover, American Express, Apple Pay, PayPal, and Venmo. ACH bank payments allow direct electronic transfers from customer bank accounts. In-person payments are accepted through card readers or Tap to Pay on iPhone, supporting chip cards, contactless payments, and digital wallets like Apple Pay, Google Pay, and Samsung Pay. Keyed-in payments allow processing card numbers entered manually over the phone.

Transaction Fee Structure

QuickBooks Payments uses a pay-as-you-go model with no monthly fees or minimums. Invoiced and online payments for cards and digital wallets cost 2.99% per transaction. ACH bank payments are 1% of the transaction amount. In-person payments using a card reader or Tap to Pay on iPhone cost 2.5% per transaction. Keyed-in payments for manually entered card details are 3.5% per transaction. These rates apply to QuickBooks Online users; QuickBooks Desktop has slightly different pricing at 2.4% + $0.30 swiped, 3.5% + $0.30 invoiced/keyed.

ACH Payment Fee Details

ACH payments through QuickBooks Online are charged at 1% of the transaction amount. For accounts created before September 2023, a $10 cap per transaction applies. Newer accounts may not have a fee cap, meaning large ACH transactions can result in significant fees. Some accounts have seen cap increases to $8, $10, or $15 per transaction. Businesses processing high-value ACH payments should verify their specific fee structure, as this has been a point of concern for some users with large invoice amounts.

Volume Discounts

Merchants processing more than $2,500 per month may qualify for discounted rates of up to 25% off standard transaction costs. To access volume pricing, businesses must request the discount at the time of application or contact QuickBooks sales. Existing customers on standard plans are not automatically eligible but can contact support to discuss options. The discount offer is available to new QuickBooks Payments merchants only.

Instant and Same-Day Deposits

QuickBooks offers multiple deposit speed options. Next-day deposits are standard for payments processed before 3:00 PM PT, arriving the next business day. Instant deposits deliver funds to your bank or debit card within 30 minutes for an additional 1.75% fee. Same-day deposits allow up to three deposits per day on a predetermined schedule. If you have a QuickBooks Checking account, the 1.75% instant deposit fee does not apply—eligible payments are deposited fee-free.

QuickBooks Checking Integration

QuickBooks Checking is a business bank account provided by Green Dot Bank (Member FDIC) that integrates with QuickBooks Payments. Benefits include fee-free instant deposits, 3.00% APY on savings envelopes, no monthly fees or minimum balance requirements, and a QuickBooks Visa Debit Card. The checking account allows businesses to access payment funds faster while earning interest on savings set aside for future expenses like taxes or inventory.

Chargeback Protection

QuickBooks Payments includes automatic Payments Dispute Protection covering credit and debit card chargebacks. The protection covers up to $10,000 per dispute and $25,000 per year on a rolling 365-day basis. The service fee ranges from 0.99% to 1.99% based on eligibility criteria. Protection applies to disputes on the American Express, Discover, Mastercard, and Visa networks when both the payment and dispute occur while enrolled in the protection program.

Invoicing Features

QuickBooks creates pay-enabled invoices that customers can pay online immediately. Real-time tracking shows when customers view and pay invoices. Recurring payments automatically charge customers on set schedules for predictable cash flow. Invoices support partial payments, deposits, and milestone-based billing. Automatic payment reminders can be sent before, on, or after due dates. All invoice payments sync directly to QuickBooks Online without manual data entry.

In-Person Payment Options

The QuickBooks GoPayment mobile app and card reader accept credit and debit cards in person by tap, dip, or swipe. Tap to Pay on iPhone allows accepting contactless payments without additional hardware, supporting Apple Pay, Google Pay, Samsung Pay, and contactless cards. Hardware requires product registration and a QuickBooks Payments account. In-person transactions have lower fees (2.5%) than online payments due to reduced fraud risk.

Automatic Bookkeeping

Online payments processed through QuickBooks Payments are automatically recorded and matched with corresponding invoices in QuickBooks Online. This eliminates tedious manual entry and ensures the business's bottom line is accurate. The automatic matching feature works only for deposits processed through QuickBooks Payments—third-party payment deposits require manual reconciliation.

QuickBooks Online Plans

QuickBooks Payments requires a QuickBooks Online subscription. Plans include Solopreneur, Simple Start, Essentials, Plus, and Advanced, with monthly prices ranging from around $20 to $200+ depending on features. All plans include the ability to accept payments, track income and expenses, and handle customer transactions in one place. Higher-tier plans add features like inventory management, project tracking, and advanced reporting.

Convenience Fee Pass-Through

QuickBooks allows merchants to pass ACH processing fees to customers as a convenience fee, though this feature has limited availability. For credit card fees, QuickBooks does not currently offer a built-in pass-through option due to compliance considerations and industry regulations around surcharges. Merchants wanting to pass card fees to customers can create a manual service item on invoices or use third-party apps that integrate with QuickBooks.

Security and Compliance

QuickBooks Payments uses secure, PCI-compliant servers with payment data encryption. 3D Secure checkouts provide additional authentication for online transactions. The service is licensed as a Money Transmitter in applicable jurisdictions. All card transactions meet current EMV and contactless payment standards.

Who Should Use QuickBooks Payments?

QuickBooks Payments is ideal for businesses already using QuickBooks for accounting who want seamless integration between invoicing, payment processing, and bookkeeping. It's particularly valuable for service-based businesses that invoice clients, freelancers and solopreneurs wanting simple payment acceptance, and small businesses that want to track payments and finances in one platform. The convenience of automatic record-keeping makes it attractive for businesses without dedicated bookkeeping staff.

Considerations

While convenient, QuickBooks Payments transaction fees are higher than some dedicated payment processors, particularly for high-volume businesses. The ACH fee structure has changed for newer accounts, potentially making large bank transfers expensive. Businesses processing significant volume should compare rates with standalone processors and consider whether the accounting integration justifies any premium. Volume discounts require proactive negotiation.