How Does Intuit Payment Processing Work?
Intuit Payments, aka QuickBooks Payments, allows a user to accept and quickly process a variety of payment types. This includes debit and credit cards, as well as ACH bank transfers. As a merchant you’ll be able to accept payments online or with your smartphone. They even offer a free swipe reader for on-the-go payment processing. The primary benefit of using Intuit Payment Processing with QuickBooks is the integration feature. This means that every payment processed will automatically register in your business’s accounting files so your financial records stay clean and up to date.
It’s important to note that in order to use Intuit Payment Processing you have to be a QuickBooks customer, you can’t use their card processing services without also using their accounting software because their payment processing is basically an add-on. You can choose either the desktop or online version.
Intuit Payments Background
Intuit is a financial software company headquartered in Palo Alto, California that was founded by Scott Cook and Tom Proulx and has been around since 1983. Ever heard of Turbo Tax? That’s Intuit’s industry-leading tax filing product. In addition to developing tax preparation software, Intuit also created Quicken and later QuickBooks, software that provides individuals and merchants with financial and accounting solutions that make managing finances and business accounting easier.
Intuit’s QuickBooks Desktop accounting software was launched in the 1990’s as a bookkeeping solution for small and medium size businesses. Shortly after that Intuit introduced a web-based version – QuickBooks Online. Intuit’s steady growth and market domination in financial software resulted in the company’s branching out to develop Intuit Merchant Services. In this article, it will also be referred to as QuickBook Payments. The goal of Intuit Merchant Services was to provide QuickBook merchants with an integrated tool to process credit cards and bank payments.
If you already use QuickBooks to manage your business accounting records but you also need to process payments, purchasing Intuit Payment Processing services to accept card payments may seem like a no-brainer. But just like any other business decision, it makes sense to weigh the costs and benefits of adding QuickBooks Payments versus using other payment processing providers.
Intuit Payment Processing Benefits
QuickBooks Desktop has two different service options for payment processing. you can either ‘Pay as You Go’ or choose ‘Pay Monthly’ for reduced rates per transaction. Intuit also offers two monthly service packages for QuickBooks Online. ‘Simple Start’ is the basic package, but there is also an ‘Essentials’ package that provides some added value. Both QuickBooks Online and the desktop packages come with the following standard accounting features:
- Income and expense tracking
- Accepting payments
- Maintaining sales tax records
- Receipt capture and organization
The ‘receipt capture’ feature means that a merchant can use their smart phone to snap photos of receipts and link them directly to expenses.
The Essentials package for QuickBooks Online includes some extra perks such as managing and paying merchant bills and it also has a time tracking feature called TSheets. TSheets functions as an automated timecard that allows a merchant to better monitor and control their payroll activity and expenses. Finally, the Essentials package can accommodate up to 3 user accounts, whereas Simple Start is for an individual user.
Intuit Payment Processing Fees
So, how much does Intuit Payments/Quickbooks Payments charge?
With QuickBooks Desktop, the ‘Pay as You Go’ option has no monthly service fee, but the transaction rates are higher than the ‘Pay Monthly’ plan which is $20 per month.
For QuickBooks Online you can go with either the ‘Simple Start’ or the ‘Essentials’ account. With both options, users pay a monthly charge for payment processing in addition to transaction fees. The Simple Start account for new users is $25 per month, or Intuit offers a 3-month trial promotion of $12.50 per month. If you need the added services provided by the ‘Essentials’ package, you’ll pay $40 per month. They do offer a 3-month trial promotion of $20 per month.
Intuit Payment Processing Transaction Fees
Pay as You Go
- Card Swiped – 2.4% + 30 cents
- Card Invoiced – 3.5% + 30 cents
- Card Keyed – 3.5% + 30 cents
- ACH Bank Transfers – $3.00 each
Pay Monthly ($20 per month)
- Card Swiped – 1.6% + 30 cents
- Card Invoiced – 3.3% + 30 cents
- Card Keyed – 3.3% + 30 cents
- ACH Bank Transfers – $3.00 each
QuickBooks Online Transaction Fees
- Card Swiped – 2.4% + 25 cents
- Card Invoiced – 2.9% + 25 cents
- Card Keyed – 3.4% + 25 cents
- ACH Bank Transfers – 1% ($10 max)
The transaction fees for QuickBooks Online are the same regardless of which monthly service package you choose. Also, Intuit has no service cancellation fees and doesn’t require a long-term contract.
Payline Data Processing and QuickBooks Intuit
Even though QuickBooks Payments delivers some great features for payment processing it may not be the best choice for your business. Their pricing model isn’t the most competitive, and they prohibit certain businesses from using Intuit Payment Processing.
For instance, QuickBooks Payments doesn’t serve merchants that operate in several industries they consider ‘high-risk’. This includes businesses like travel, adult related, pawn shops, or debt collection. Also, Intuit’s customer service has limited hours and closes early on weekends. Therefore, they’re not able to provide 24/7 support for users which could be problematic for businesses that take payments across several different time zones.
The good news is that Payline’s payment processing software integrates seamlessly with both QuickBooks Online and QuickBooks Desktop, and we can process payment transactions at a savings of .5%-1% per transaction with our Interchange Plus pricing model. Seamless integration means Payline allows you to switch payment gateways on the backend so our software processes the payment. Then it will sync your data and updates accounts in real-time. Payline has a solid reputation for working with high-risk businesses so we can handle the payment processing needs for a wide range of clients across many industries.
The Take Away
If you’re a merchant who uses QuickBooks to manage your business finances Quickbooks might be a viable option. The add-on with Intuit Payment processing offers various pricing packages and levels. It’s important to note that QuickBooks Payments may not be the best fit for your business if you operate in certain high-risk industries or you’re looking for better pricing.