As soon as you have yours QuickBooks Online When you set up a subscription, the next important step is setting up your QuickBooks credit card payment account. Accepting credit card payments makes it easier for your customers or customers to make payments and reduces the time it takes to record payment transactions.
Setting up your QuickBooks credit card payment account is easy. Here is everything you need to know.
Set up QuickBooks credit card payments
To create a new credit card payment account in QuickBooks Online, click the gear icon in the top right corner, then select Account and Settings:
Click on the “Payments” tab in the navigation bar on the left:
Then you will see details of the tariffs (Note: if your customers choose bank transfers, your QuickBooks fee will be for credit card payments Nothing).
Now enter the information about your company:
And the owner / client of your company:
Lastly, enter your commercial banking information:
You’ll be notified quickly when they’re approved, and QuickBooks credit card payments are ready to use within 24 hours.
If you haven’t been approved, you can call support to inquire about the reasons. Please note that this does not necessarily have to be credit-related. Your business may be in an industry that is not on the approved business list (e.g. medical marijuana).
Manage your QuickBooks credit card payment account
Once your account is approved, you can review the connection and make changes to how transactions are processed by going back to the gear icon, selecting Account and Settings, and clicking the Payments tab again.
You can then select the bank account in your QuickBooks Online Chart of Accounts to which deposits will be posted, as well as the expense account for merchant fees.
To view transaction history or change your QuickBooks credit card payment settings, you can click the Manage Account button.
Clicking this button will open a new page (Merchantcenter.intuit.com). From here, you can review all QuickBooks credit card payment transaction history, manage mobile-only users, set alert settings, access help and resources, and change bank accounts if necessary.
Now that your QuickBooks credit card payments are done and ready to go, you are ready to create transactions – and get paid!
Let’s take a look at sending out invoices – both what happens to you and your customers.
First, set a preset to ensure that your customers view the invoice through the online billing portal. To do this, click on that gear icon, go to Account and Settings and select the Sales tab.
Here, click on the “Online delivery” section and make sure that the box next to “Attach invoice as PDF” is not checked. You don’t want to attach the invoice because you want the recipient to display it in the invoice portal, where they have the payment option.
You can now send an invoice. The easiest way to create an invoice is to click the Quick Create button in the top right corner and select Invoices. (Quick Create is the QuickBooks term for this spinning plus sign.)
Once you open the invoice form, just fill it out as you normally would – make sure you select which types of online payment options you accept – then click “Save & Submit” in the lower right corner.
The next screen allows you to make changes to the subject line and body of the email before sending it. You can also change or add your mind about the payment options in case you forgot when creating the invoice.
If everything looks good, click the “Submit & Close” button.
As long as your customer pays online, you’re done. I’ll show you what I mean below.
Customer’s online billing portal
After you’ve sent this invoice, your customer will receive an email (without the invoice attached as a PDF) with a button that they click to view their invoice. As long as you do not delete this email, you can go back and view the invoice at any time.
Once they hit “View Invoice” they’ll be taken to the online billing portal – and this is where the magic of QuickBooks credit card payments really happens. The customer can print, save the invoice as a PDF and pay via the online invoice portal.
Once the customer clicks the “Pay Now” button, they select the payment method and enter the information. You also have the option to create an account to save your billing information and use it the next time you receive an invoice from a QuickBooks Online user.
In the following screenshot you can see that the customer used a credit card to pay. Once you have selected the amount to be paid (it can be less than or equal to the remaining amount due on the invoice, but not more), you will be asked to enter the name on the card, the card number, the expiry date and the CVV code and Postcode invoicing.
After clicking the “Submit Payment” button, you will see a confirmation on your screen and the online billing portal will show the status “Paid”.
You will also receive an email with the payment confirmation, which contains a link to the invoice in the online invoice portal.
QuickBooks Online marked as paid
I told you earlier that once the invoice is sent and you are using QuickBooks credit card payments, your job is done. QuickBooks Online does the rest of the work for you.
After your customer pays you will also receive an email letting you know that you have been paid. When you open the invoice in QuickBooks Online you will see that it now has a paid status with a link to pay in QBO.
When you click the link on the invoice, you will be taken to the Payment Received screen. Here you can see the date, amount and the processing of the transaction via QuickBooks credit card payments.
Once the deposit is received by your bank, QuickBooks Credit Card Payments will enter the deposit for you.
The image below shows the check history for the deposit, which shows that QuickBooks Credit Card Payments has taken effect and booked the deposit for you.
Even better, if the customer is paying with a credit card, QuickBooks Credit Card Payments magically also gets into the merchant fee transaction!
Store payment information in QuickBooks Online
In addition to creating and sending invoices to customers, your customers can fill out a payment authorization form and save their bank or credit card information. QuickBooks Online and QuickBooks are credit card payments PCI compliantOnce you’ve entered the payment details, all but the last four digits will be masked.
The screenshot below shows an American Express card. However, you can save Visa, MasterCard, Discover or bank codes / account numbers depending on the customer’s requirements. You cannot save more than one card or account.
To generate a proof of purchase, just hit the “Quick Create” button (scroll up a little and check out the cute GIF again if you’d like). Then select “Proof of Purchase”. Fill out the form as you normally would and select the type of payment method you just added.
The best part about using QuickBooks credit card payments is that if you have a recurring sales accounting tool, you can turn a sales receipt into a recurring transaction. This means that QBO will automatically generate a new sales receipt every time you specify.
And when you’ve saved the payment information, it will also charge the card or collect the bank and email the customer and you a copy, all at the same magical time.
If you don’t make recurring sales, you can still keep the card. When the customer is ready, he can inform you that it is okay to receive a payment using the payment method on file. In this case, click on “Create quickly”, select “Receive payment” and fill in the relevant information.
A version of this article was first published on Fundera, a subsidiary of NerdWallet.