QuickBooks is a reputable accounting brand that includes accounting software, credit card processing, and point of sale software. All three aspects of QuickBooks services aim to automate the accounting process for small businesses and enterprises. Using QuickBooks credit card processing software is useful for businesses like general contractors, consultants, and other service based businesses.
Business owners must understand what happens during QuickBooks credit card processing before subscribing to any services. Most business owners tend to opt for QuickBooks credit card processing because they use the QuickBooks accounting software, and it is easy to synch transactions online. This article will explore all the features and fees payable when business owners use QuickBooks credit card processing.
Quickbooks Credit Card Processing Fees
The processing fees that QuickBooks card processing offers are competitive on their own, but the fees for the complete process can accumulate fast. QuickBooks credit card processing is expensive because there are additional fees associated with the service from third parties. The service would be cheap if they provided a complete transaction process from the credit card network to the merchant account.
However, you will need some third-party services that will charge your business for every debit or credit card transaction you perform on QuickBooks Intuit. Using several third parties’ services can significantly increase a single transaction’s cost, taking a considerable chunk of business profits.
QuickBooks Credit Card Processing Transaction Fees
QuickBooks has its own set of transaction fees that businesses pay for each transaction. The costs are little for significant credit card payments, and they are lower than PayPal rates. Overall, the costs are excellent for both small and established businesses looking for card processing solutions. Here are the fees that business owners will incur when using QuickBooks.
- ACH fees – 1% with a maximum of $10
- Swipe fees – 2.4% + 25 cents
- Invoice fees – 2.9% + 25 cents
- Keyed payment fees – 3.4% + 25 cents
For example, for a $10,000 transaction, QuickBooks credit card processing will charge the following:
- ACH fees – $10
- Swipe fees – $240.25
- Invoice fees – $290.25
- Keyed payment fees – $340.25
The transaction fees for goods or services worth $1,000 are as follows:
- ACH fees – $10
- Swipe fees – $24.25
- Invoice fees – $29.25
- Keyed payment fees – $34.25
If the QuickBooks transaction fees were the only fees that businesses incurred, it would be the perfect card processing solution. However, there are more fees per transaction that business owners need to be aware of before selecting Intuit QuickBooks credit card processing option.
Authorization Fees
An authorization fee mostly applies in keyed payments where the cashier has to enter the card details into the system for order payments. There is an extra verification step where the payment information needs to be validated before a transaction can go through. That additional verification process cumulates to a charge to the merchant account for every transaction that is authorized. The fee varies on the plan you pay for from your card processor, and it is listed separately from standard rates.
Credit Card Networks
Credit card networks charge merchant accounts a percentage of payments as processing fees. You should expect Visa and MasterCard networks to charge your account every time credit card payments are transferred into your merchant account. You can select a network that charges the least fees to avoid high rates. Overall, the credit networks contribute to your business’s transactional fees for each credit card payment.
Sponsor Banks
Sponsor banks are the institutions that extend a line of credit through the various credit card networks. You should expect an extra charge from sponsor banks for any credit card processing transaction on top of what credit card networks charge your merchant account. The fees vary from one sponsor bank to the next. You can choose the sponsor banks with low costs, but turning down credit cards from some banks may be bad for business.
QuickBooks Credit Card Processing Background
Most people refer to QuickBooks accounting software when they talk about QuickBooks in general. However, the company also provides a credit card processing service and point of sale software. All the services aim to ensure that a business records sales, transactions, expenses, incomes, and other business accounting aspects in an automated method.
Previously, QuickBooks did not have a credit card processing option, and the accounting software was only useful for cash transactions. It was a disadvantage because more customers are willing to pay using credit cards. Therefore, business owners were pressed to incorporate credit card payments in their payment options.
The company developed payment software compatible with their accounting software to help business owners account for transactions with ease. Overall, the service is an excellent addition for businesses that use QuickBooks accounting software, which is easy to add credit card payment options.
The best QuickBooks package for companies that want to add credit card payments into their system is Intuit QuickBooks. Intuit is a creation of Scott Cook and Tom Proulx, and it has been part of QuickBooks since 1983. In 2019, it was among the best performing accounting software in the USA.
There is a pro, premium, and enterprise package under Intuit QuickBooks, and business owners need to consider their workload when choosing a plan. You can use the Intuit suite with QuickBooks Online or QuickBooks Desktop under the payments feature. Overall, it is an excellent package to add to your accounting software.
Quickbooks Credit Card Processing Features
Several features make QuickBooks credit card processing an excellent solution compared to other card processing options in the market. Although most business owners opt for the software because QuickBooks is a reputable company, it doesn’t mean that the card processing feature isn’t among the best in the market.
Easy to Add
The process of adding the card processing feature to a business is straightforward, and you can do it without the help of an expert. Most business owners using Intuit can add the card processing service to their accounting software fast. You will need to create a merchant account where the payments will go during receipt processing.
It is essential to note that the credit card processing service is separate from your QuickBooks accounting software. It is an additional payment that you will add to your expenses. You can opt for the monthly payment package that offers a 40% discount on fees for any transaction above $7,500 per month.
Transparent Pricing
QuickBooks credit card processing service is open about the pricing of transactions to its users. Their process includes a percentage of the transaction and a fixed transaction fee. The pricing model’s beauty is that the rate doesn’t fluctuate as the transaction amount increases. Therefore, you can compare the pricing model with other card processing software before settling on the QuickBooks credit card processing option.
Accepts Most Credit Cards
QuickBooks credit card processing software accepts all the major credit card companies, including Visa, MasterCard, Discovery, and All American. Therefore, your store can take almost all credit cards that your customers offer for payments. It makes it easier for e-commerce businesses that heavily rely on debit and credit card payments as the primary payment option. You don’t have to worry about the credit cards that the software cant process because the number will be insignificant.
Easy Accounting
The QuickBooks credit card processing feature’s most motivating feature is that it is part of your accounting software and automates the accounting duties. It eliminates the need to manually input data into your system after a long day of work. You don’t need to do any reconciliation because the QuickBooks accounting software will do it once all the data is uploaded. You can view your end-of-day reports and see the profits or losses that you have so far. It makes it easy to monitor the progress of a store daily.
Pros
- It is simple to integrate into your payment system.
- You can enjoy flat-rate transaction fees.
- A business can accept all the major credit cards.
- You will enjoy seamless card payment processing.
Cons
- Cumulative transaction fees are higher than those of other credit card processing software.
How Can You Lower Your Quickbooks Credit Card Processing Charges
If you choose to use QuickBooks credit card processing because you have the QuickBooks accounting software, you will need to select third-parties carefully. The credit card networks and sponsor banks you choose to work with can determine how high or low your transaction fees will be in the long run.
It is not uncommon for businesses to set a minimum limit for the amount a customer can pay using a credit card. You can redirect lower payments to other payment alternatives that have low transaction costs. Larger amounts tend to offset any transaction costs you incur, and you can forward the transaction fees to the customer. However, transferring transaction fees to smaller amounts can increase the cost of items or services too much for your customers.
Overall, selecting your merchant account carefully and the credit card you accept from payments can significantly reduce your transaction fees. You might want to engage an expert in the whole process to help you come to a favorable decision. Talking to an expert can save you from changing service providers to lower your charges per transaction.
Quickbooks Credit Card Processing Conclusion
QuickBooks credit card processing is the best option for anyone who uses QuickBooks accounting software. Other card processing software packages are compatible with QuickBooks accounting software, but the compatibility cannot beat that of the company’s card processing software. It is advisable to use the two software together when you are considering a credit card processing option.
Businesses can enjoy automated accounting for daily transactions and simple reconciliation of receipts between the bank and merchant account. You will have to pay for the QuickBooks credit card processing service separately from the accounting software. Overall, QuickBooks credit card processing is an excellent credit card payment solution for businesses.
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