How do QuickBooks Payments Works?

Adding a payment method for invoices and sales receipts

Once a client has set up and activated QuickBooks Payments, they can add it as a payment method on invoices and sales receipts.

To do this, they first need to set up a payment method as follows:

1.     Go to the Gear icon, followed by All lists  

2.     Select Payment Methods.           

 

3. Select a payment method from the list. In this example, we’ll choose MasterCard

4.     Open the dropdown next to Run report and select Edit 

 

5.   Enable the checkbox for This is a credit card

 

QuickBooks Payments has introduced a new feature that allows the processing of sales receipts and invoice payments through the selection of Mastercard as a payment method. However, it is important to note that clients will need to follow this same process for any other payment methods they intend to utilize with QuickBooks Payments. This development provides more options for clients seeking to use QuickBooks Payments and is indicative of the company's ongoing efforts to improve its services.

How QuickBooks Payments works on invoices

What should the client do when they create the invoice?

When the client creates an invoice, they can select how they’d like to get paid (credit card or ACH or both).  

 The client can choose which payment option(s) to include by selecting Edit.

Once the client has filled in the invoice details, they can send it via email to their customer to make payment.

Here's an example invoice 

Using QuickBooks Payments with sales receipts

When a customer pays a client at the point of sale, generating and sending an invoice becomes unnecessary. Instead, the client should create a sales receipt that captures both the transaction and payment details on the same screen in QuickBooks Online. Subsequently, the sales receipt can be sent to the customer via email, providing them with a comprehensive record of the sale. This process is not only efficient but also ensures that both parties have a clear and concise understanding of the transaction's specifics.

If the client uses QuickBooks Payments and selects a credit card as the payment method, they'll get an option to Process credit card.  

To process payment, the client then needs to select Enter credit card details and fill in the necessary details.

Finally, the client saves the sales receipt and sends it to the customer.

Payment links, instant deposits, and QuickBooks GoPayment

Clients using QuickBooks Payments have access to three additional features to make things faster:

• Payment links
• Instant deposits
• QuickBooks GoPayment

Payment links

Payment links refer to links that are intended to be used once and are shared by clients with their customers through emails or messages. A significant feature of these links is that they automatically expire once the customer makes the payment. These payment links are ideal for clients who anticipate immediate payment from their customers. However, if the clients are not in a hurry to receive payment, or the customers have pre-established payment terms with the clients, it would be more appropriate to include an online payment option in their invoices. As you may have learned earlier, adding an online payment option is a fairly simple process. By doing so, you can provide your clients with a more convenient payment system that can help streamline their business operations.

Instant deposits

With the QuickBooks Payments system, it may take a few days for the payment to be credited to the client's bank account. However, if the client requires immediate access to the payment funds, QuickBooks Payments offers an Instant Deposit feature. It is important to note that the client must activate this feature on QuickBooks Online as it cannot be done on their behalf.

For a small additional charge of 1% per transaction, the available funds can be deposited instantly into the client's designated bank account. Clients have the flexibility to deposit a minimum of $1 or a maximum of $2,000 up to three times a day, provided they do not exceed the daily limit of $2,000.

Moreover, clients can opt to schedule instant deposits for specific days of the week, which can be done through the QuickBooks Online platform. To do so, clients must follow a few steps on the platform to activate the feature. This feature provides clients with a convenient way to access their payment funds quickly.

It is important to note that this feature is only available to clients who have activated QuickBooks Payments. Therefore, if a client has not yet activated this feature, they will not be able to take advantage of the Instant Deposit option. Additionally, clients must ensure that they have provided the correct bank account information to avoid any delays or issues in the deposit process.

In summary, QuickBooks Payments offers a reliable and efficient way for clients to receive payment. With the Instant Deposit feature, clients can access their payment funds immediately through their designated bank account. By scheduling instant deposits for specific days of the week, clients can plan their finances accordingly. QuickBooks Payments' Instant Deposit feature is a convenient and flexible option for clients who require quick access to their payment funds.

1.     Open Account and settings

2.     Select the Payments tab and go to the Deposit Speed section

3.     Select Change

4.     In the “Set up your instant deposit schedule” pop-up, select the days you want instant deposits for

5.     Select Save schedule

QuickBooks GoPayment

Clients utilizing QuickBooks Payments have the added convenience of being able to use QuickBooks GoPayment - a mobile point-of-sale application. This feature enables clients to accept payments on the go using their mobile devices with a connected card reader. Accessing the app is a straightforward process as clients need only search for QuickBooks GoPayment in their mobile app store. This user-friendly and accessible service is a testament to the commitment of QuickBooks to meet the demands of the modern business landscape.

 

Setting up recurring payments using QuickBooks Payments

Clients who have configured QuickBooks Payments to work with a credit card, ACH, Visa, or Mastercard can easily establish recurring charges for their customers. This can be done by creating a recurring sales receipt that will be automatically recorded in QuickBooks Online and the funds will be deposited into the client's bank account. This feature is particularly useful for businesses that provide monthly maintenance plans or service agreements as it allows them to automate billing and payment processes.

It is important to note that clients must first obtain written authorization from their customers before charging them a recurring amount. This authorization form is automatically generated when a new recurring sales receipt is saved in the system. This ensures that customers are aware of the recurring charge and have given their consent for it.

By using QuickBooks Payments, clients can streamline their billing and payment processes, saving valuable time and effort. The ability to set up recurring charges provides a convenient and efficient way to bill customers for services rendered on a regular basis. Overall, this feature can greatly benefit businesses looking to automate their financial processes and improve their cash flow management.

How do you create a recurring sales receipt?

1.     From Account and settings, select Recurring transactions > New > Sales Receipt > OK 

 

      2.     Start filling in the recurring sales receipt details, as you would any       other sales receipt. This process is explained in the lesson on sales receipts.

3.     As you’re creating a recurring sales receipt, you need to specify how often—and on what date—QuickBooks Online should send it to the customer. Enter these details in the Interval section. 

4.      To use QuickBooks Payments, you need to select a Payment method that’s set up accordingly. You saw how to set up a payment method earlier in the lesson.

5. 5.  Choose the payment method, then select Enter credit card details

6.     Enter the customer’s credit card details and select Save

Note: If this is the first recurring sales receipt your client is creating for this customer, they’ll need written authorization from the customer to take payment. The credit card information panel includes a link to download the authorization form.

7.     When you’ve added the credit card details, ensure that the Process credit card box is checked. This tells QuickBooks Online to process payments via QuickBooks Payments.

8.      Complete the rest of the details as with any other sales receipt. When you’re done, select Save template

 

Recurring invoices with Autopay

With the aid of QuickBooks Payments, customers have the ability to activate the Autopay attribute in a recurring invoice for their patrons. The Autopay feature permits patrons to settle their routine invoices automatically. This function ensures that payments are made on time and eliminates the need for manual intervention.

Enabling Autopay

To allow customers to use the Autopay function, clients need to set up a recurring invoice in the following way:

• They need to use an Invoice template. Currently, Autopay only supports recurring invoices
• From the Type dropdown, they need to select Scheduled
• They need to check the Automatically send emails option
• In the Online payments section, they need to define which payment methods the customer can use with Autopay 

 

Using Autopay

 When the invoice is delivered to the customer's email, they can opt to review and pay by selecting the appropriate button. Should they choose to do so, they will also have the option of selecting the Autopay box before completing the transaction. This feature ensures that QuickBooks Online will manage all future payments related to the recurring invoice automatically. It is important to note that customers who do not have an Intuit account will be prompted to create one before they can proceed with the payment process.