ACCOUNTING BLOG

ACH & Quickbooks Online

Bookkeeping, Business Management, Payroll, Business Smarts
by Erin Whitesides

QuickBooks now allows business owners to process bank transfers (ACH transactions) in lieu of credit card payments. ACH payments are becoming increasingly popular because credit card fees can add up quickly. ACH, however, processes at a much lower fee of about 50 cents per transaction.

What’s the benefit of using QBO to collect your ACH payments?

Mostly, it saves you time. Rather than processing eChecks in the Merchant Service Center and copying the details to QuickBooks, you can enter each customer’s bank info directly into QuickBooks and the tool will do your accounting for you.

So how does it work?

The first thing you’ll need to do is sign up for QuickBooks Payments.

Next, you need to select the payment method. You can do this from the Receive Payment or Sales Receipt page. From there, you will select the Check payment which should trigger the “Enter bank info” button to appear. Once it does, you will enter the bank info. You’ll need to fill in the customer’s bank account info, phone number, and name. After that, you need to get authorization. QuickBooks will provide you with text links to open an authorization form. Once that’s all said and done, you can process the payment. Be sure to select the box to indicate you have signed authorization from your customer to process the ACH transfer.

For more information on QuickBooks Online tips, visit the Bookkeeping section of our Blog!