Whether you have to track the company data or handle business financial activities, you can trust QuickBooks software. This software is helpful for small as well as mid-sized businesses as many business tasks can be easily performed. There are different features which are offered by this software. Here we will discuss the feature named credit card payments. Most importantly, with this feature, you can easily accept credit card payments as well as generate invoices for the customers. In this manner, you can see the sales data in real-time. This write-up will make you understand how to process credit card payments in QuickBooks Online.
Note: It is must to sign up for the QuickBooks payments account. Secondly, choose the location to record your payment and fees. Keep these points in your mind while processing credit card payments.
Methods to Process Credit Card Payment in QB Online
These are the two methods for processing card payments with your payments account:
Method 1: Collect a Payment
- Initially, click on ‘+ New’.
- Secondly, hit on ‘receive payment’.
- Thirdly, add the ‘payment date’ and ‘customer information’.
- Now, hit on the ‘open invoice’.
- You need to modify the details given in the amount received field.
- You are required to hit, on the ‘credit card’ choice.
- Simply, you have to add the accurate ‘credit card’ info.
- Next, click on the ‘process credit card’.
- Hit on ‘save’.
- The second last step is to click on ‘save’ and ‘close’.
- Lastly, click on the ‘new’.
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Method 2: Create a Sales Receipt
- First, you need to hit on ‘+ New’.
- The second step says to click on the ‘sales receipt’
- You will be adding the correct ‘customer info’.
- Now, add your ‘product’ or ‘service’.
- With this, you need to hit on the ‘credit card’ option.
- Next, add the credit card details correctly.
- Move ahead by clicking on the ‘process credit card’.
- You have to hit on a ‘save’ option.
- Thereafter, simply click on ‘save’ and ‘close’.
- Finally, hit on the ‘new’ option.
How to Enter Credit Card Payments in QB Online?
Follow the instructions as stated below:
- Go on to Chart of Accounts List
Initially, by hitting on the gear icon you need to proceed to the ‘chart of accounts list’.
- Add Credit Card Details
Your next task is to add credit card information. Also, give the details of the account type, name of the account, a description, current account balance, and detail type. Proceedings further, hit on the ‘new’ button and add the details in the field.
- Checking of New Credit Card Account
Just check that the new credit card account is added. Just after this, you need to go to the chart of accounts list and seek out the ‘new account’.
- Access the Account Register
In the second last step, you can access the account register.
- Type Credit Card Charges
Simply, by going to the credit card register add the details. Next, you need to choose the transaction type shown option. After that, hit on the drop drown arrow. You are required to click on a transaction type. Finally, you need to save the ‘credit card transaction’.
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How to Record Credit Card Payments in QuickBooks Online?
Recording credit card payments in QuickBooks Online will help you in maintaining accurate financial reports:
Follow these Steps to Write a Cheque
In case you have received payment via cheque, you are required to create a cheque for recording a credit card payment:
- First, hit on ‘+ New’ shown option.
- Now, you have to click on the ‘cheques’.
- You are required to add the name of the ‘credit card’.
- Next, just hit on the ‘bank account’ or ‘credit card’ option.
- Move ahead to the next step by adding the ‘cheque number’. If it is paid electronically, then you are required to type EFT.
- Just uncheck ‘print later’ in case the cheque is previously issued.
- Thereafter, add the ‘outstanding transaction’ details as well as the payment amount.
- Lastly, click on the ‘save’ option and then ‘close’.
Creating a Transfer
Follow the below steps to record a credit card payment:
- In the beginning, select ‘+ New’.
- Secondly hit on ‘transfer’.
- Thirdly, select the ‘bank account’ via which you will pay.
- Choose the ‘credit card’ in which you have received the payment.
- Add the amount of the ‘payment’.
- Later, edit the ‘date’.
- Finally, hit on save and then ‘close’.
We believe that you have got the idea of how to process credit card payments in QuickBooks Online. If you find difficulty in following the steps of processing credit card payments, then quickly get connected to QuickBooks professionals. They have an excellent understanding of the software feature and resolve the issues related to it instantly.
In case you have any doubt related to how to process credit card payments in QuickBooks Online, dial +1-888-300-3913.
Frequently Asked Questions
Ques- Is a credit card payment a credit or debit account?
Ans- Credit cards as well as loans are liability accounts. On the other hand, received payments are debits. Purchases/expenses are credits.
Ques- What is the process to reconcile a credit card statement?
Ans- Follow these steps to reconcile a credit card statement:
- First, sort your receipts. With this, keep your credit card receipts safely.
- Now, match your receipts to credit card statement.
- Finally, inform your bank.
Ques- What are the steps required to set up credit card payments in QB?
Ans- These instructions will help you to set up credit card payments:
- Firstly, you need to set up credit card accounts.
- Now, choose ‘chart of accounts’.
- You have to choose the account or the + icon and then New.
- Choose the credit card option and then select continue.
- Your next task is to type the credit card name.
- You need to type the opening balance and then enter the account’s balance and date.
- Lastly, choose to save and close.
Ques- How I am supposed to set up credit card payments in QuickBooks software?
Ans- You can set up credit card accounts with the help of these steps:
- Initially, choose the chart of accounts.
- Secondly, select account or the plus + icon.
- With this, choose new.
- Now, choose credit card and then select continue.
- Next, type the credit card name.
- Choose enter opening balance and then type the account’s balance and date.
- Lastly, select save & close.
Ques- How to categorize credit card payments?
Ans- The steps will help you to categorize credit card payments:
- First, you will click on the banking menu.
- Now, select the correct account.
- Thereafter, go to the review tab then mark the transactions that you are deleting.
- Hit the batch actions button.
- Choose to exclude.
- Finally, proceed to the excluded tab.
QuickBooks Online: How to Record and Process Credit Card Payments
There are a variety of ways to record or process a credit card payment so that it will show up in your QuickBooks Online. This article will discuss using Sales Receipt, Receive Payment and Bank Deposit to record customer payments. It will also discuss how payments received from customers using the Intuit Payment Network service will get entered into QuickBooks Online.
Process a Credit Card Payment through the Sales Receipt Option
A sales receipt is useful when there is no invoice for the customer in QuickBooks and you don’t want to create one.
- Choose “+” icon > Sales Receipt.
- Enter the name of the Customer.
- Enter the Payment Method. If the customer is paying by credit card, an option to Enter Credit Card Details will pop up. Click this to enter the customer’s credit card information.
- Choose to either Deposit to your checking account directly or to Undeposited funds, which will put the payment in the Bank Deposit screen to be recorded as a deposit later.
- Fill in the details for the sale including Product/Service, Quantity, Rate and Amount.
- Click Save
Process a Credit Card Payment through the Receive Payment Option
- Choose “+” icon > Receive Payment.
- Enter the name of the Customer.
- Enter the Amount, Payment Method, and the Reference #. If recording a payment by ACH or another direct method you can choose + Add New from the drop-down. Create a name for the method (ACH, Transfer, etc).
- Make sure that the correct invoice you want to apply the payment to is checked in the Outstanding Transactions window. You can change which invoices are checked if necessary.
- Choose to either Deposit to your checking account directly or to Undeposited funds, which will put it in the Bank Deposit screen to be recorded as a deposit later.
- Click Save.
Recording a Deposit of Entries in Undeposited Funds
- Choose “+” icon > Bank Deposit.
- Choose the bank the deposit was sent to.
- In the Select Existing Payments section, put a checkmark next to the payments that you want to group together as one deposit.
- Make sure the total is correct.
- If additional funds were combined with the funds from Undeposited Funds, record the additional items in Add New Deposits. You will need the Received From, Account, Payment Method and Amount.
- Once the Total matches the amount of the deposit that went to the bank, click Save.
Even if a customer only pays part of their balance owed, QuickBooks Online will keep track of the open balance due on each invoice. You can see what is owed by each customer individually by clicking on the Customer Name from the Customer List. Open a specific invoice by clicking on it and looking at the Balance Due line near the top right of the page.
Additionally, you can see all of your open invoices with their current balances by running the Customer Balance Detail report from the Reports menu.
If you have a situation where one payment needs to be applied to invoices recorded under two different customers, you can book the payment in the following manner:
- Choose “+” icon > Receive Payment.
- Enter the name of the first Customer.
- Enter the Amount, Payment Method, and the Reference #. Make sure you note the check number in the Reference # field.
- Make an entry in the Memo field that this payment is included with payment from another customer.
- Make sure that the correct invoice is checked. You can change which invoice is checked if necessary.
- Choose to Deposit To: Undeposited funds, which will put it in the Deposits screen to batch together with the other payment.
- Click on Save.
Repeat these steps for the second customer’s invoice. Make sure the check number is the same as the first customer. Next, group the payments so that they show as one deposit on the register:
- Choose “+” icon > Bank Deposit.
- In the Select Existing Payments section, put a checkmark next to the payments that you want to group together.
- Make sure the total is correct.
- Click Save.
Intuit Payment Network
If you’re using the Intuit Payment Network (IPN) to invoice customers with a pay now link, QuickBooks Online will automatically update when the payment is received. For example: you email your customer an invoice for $20. Your customer responds with an online payment for $20 from a bank account. Here’s what will happen in QuickBooks Online:
- A Receive Payment transaction for $20 will be recorded and automatically applied to the invoice. “IPN” will appear in the Payment method field.
- A deposit for $19.50 will appear in the bank account you define. Your customer pays no fees to send you an online payment.
- The $.50 flat fee that Intuit Payment Network charges for payments received from bank accounts is coded to the account Bank Charges.
Note: Sometimes the Receive Payment transaction and the deposit transaction are entered in QuickBooks Online on different days.
The benefit of having transactions automatically entered for you when you use the IPN is really nice. Not only will you save yourself time but your customers as well. They will appreciate the ease of being able to pay you electronically.
How to Process Credit Card Payments in QuickBooks Online
You’ve got your QuickBooks Online subscription set up, you’re selling stuff, creating invoices … you’re well on your way to taking over the world, one sale at a time. The next business accounting step—and trust me, this step will be one that you’ll define as life-changing—is to set up your QuickBooks Credit Card Payments account. By doing this, you’re making it easy for your customers or clients to pay you, as well as reducing work on your time recording them.
I’m going to show you just how easy it is to set up your QuickBooks Credit Card Payments account and the magic that will follow. So let’s dig right in.
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Setting Up QuickBooks Credit Card Payments
To create a new Credit Card Payments account in QuickBooks Online, click the gear icon in the top right corner, and then choose “Account and Settings”:
From there, click the “Payments” tab on the left navigation bar:
Then you’ll see details about rates (note: if your customers choose bank transfers, your QuickBooks Credit Card Payments fee is nothing.)
Now, enter the information about your business:
And the owner/principal of your business:
Last, enter your business bank information:
You’ll be notified quickly if you are approved, and QuickBooks Credit Card Payments will be available to use within about 24 hours.
If you’re not approved, you can call support to inquire about the reasons. Please be aware that it may not necessarily be credit related; it could be that your business is an industry that isn’t on their approved list (i.e., medical marijuana).
Managing Your QuickBooks Credit Card Payments Account
Once your account is approved, you can verify the connection and make changes to how transactions are handled by going back to the gear icon, choosing Account and Settings, and again clicking the Payments tab.
You can then choose the bank account in your QuickBooks Online chart of accounts that you’d like to have deposits post, as well the expense account for merchant fees.
If you need to see a history of transactions or change your QuickBooks Credit Card Payments settings, you can click the “Manage Account” button.
Clicking that button will open a new page (merchantcenter.intuit.com). From here, you can review all of the QuickBooks Credit Card Payments transaction history, manage mobile-only users, set alert preferences, access help and resources, and change the bank account, if needed.
Now that your QuickBooks Credit Card Payments are all set and ready to go, you can start creating transactions—and getting paid!
Let’s take a look at sending invoices—both what happens on your end, as well as your customers’.
Before we do that, set a preference to make sure your customers will view the invoice via the Online Invoice portal. To do this, click that gear icon, go to Account and Settings and then choose the Sales tab.
Here, we want to click on the section titled “Online delivery” and make sure that the check box next to “Attach invoice as PDF” is not checked. We don’t want to attach the invoice because we want to get the recipient to view it in the invoice portal, where they have the option to pay.
Now we’re ready to send an invoice. The easiest way to create an invoice is to click on the Quick Create button in the top right corner and choose Invoices. (Quick Create is the QuickBooks term for that spinning plus sign.)
Once you get the invoice form open, just fill it out as you normally would—make sure you select which types of online payment options you’ll accept—and then click “Save and send” in the bottom right corner.
The next screen lets you make any changes to the subject line and body of the email before you send it. You can also change your mind about the payment options or add them, in case you forgot when you created the invoice.
When everything looks good, hit the “Send and close” button.
As long as your customer pays online, you’re done. I’ll show you what I mean below.
Customer Online Invoice Portal
After you send that invoice, your customer will get an email (without the invoice attached as a PDF) that includes a button they’ll click to view their invoice. As long as they don’t delete this email, they’ll be able to go back and view the invoice any time they choose.
Once they click the “View Invoice,” they’ll be taken to the Online Invoice Portal, and this is where the magic of QuickBooks Credit Card Payments really happens. From the Online Invoice Portal, the customer can print, save the invoice as a PDF, and pay it.
Once they click the “Pay Now” button, the customer chooses the payment method and enters the information. They also have the option of creating an account to save their payment info to use the next time they receive an invoice from a QuickBooks Online user.
You can see in the screenshot below, the customer has chosen to use a credit card to pay. Once they’ve chose the amount to pay (it can be less than or equal to the balance due on the invoice but not over), they’ll be asked to enter the name on the card, card number, expiration date, CVV code, and billing ZIP code.
After they click the “Send payment” button, they’ll see a confirmation on their screen, and the Online Invoice Portal will show a paid status.
They’ll also receive an email with the payment confirmation, which includes a link to the invoice in the Online Invoice Portal.
QuickBooks Online Marked as Paid
Earlier, I told that you that once the invoice is sent, if you’re using QuickBooks Credit Card Payments, your job is done. QuickBooks Online does all the rest of the work for you.
After your customer pays, you’ll also receive an email notifying you that you’ve been paid, and when you open the invoice in QuickBooks Online, you’ll see it now has a paid status, with a link to the payment in QBO.
When you click the link from the invoice, you’ll see the receive payment screen; this will show you the date, amount, and that the transaction has been processed via QuickBooks Credit Card Payments.
Once the deposit hits your bank, QuickBooks Credit Card Payments enters the deposit for you.
In the screenshot below, you can see the audit history for the deposit, showing that QuickBooks Credit Card Payments worked its magic and posted the deposit for you.
Even better, if the customer pays with a credit card, QuickBooks Credit Card Payments also magically enters the transaction for the merchant fee!
Storing Payment Information in QuickBooks Online
In addition to creating invoices and sending them to customers, you can have your customers complete a payment authorization form and store their bank or credit card information. QuickBooks Online and QuickBooks Credit Card Payments are PCI compliant, and once you enter the payment details, all but the last four digits are masked.
The screenshot below shows an American Express card, but you can store Visa, MasterCard, Discover, or bank routing/account numbers, depending on the client’s preference. You cannot store more than one card or account.
To create a sales receipt, just click the Quick Create button (scroll up a bit and check out that sweet GIF again, if you want), then choose Sales Receipt. Complete the form as you normally would, and choose the type of payment method you’ve just added.
The best part, in my opinion, about using QuickBooks Credit Card Payments is that if you have an accounting tool for recurring sales (we use these for all of our bookkeeping clients at Kildal Services), you can choose to turn a sales receipt into a recurring transaction. This means that QBO will automatically create a new sales receipt at whatever interval you set.
And if you have the payment information stored, it also charges the card or drafts the bank and emails the customer and you a copy, all at the same magical time.
If you’re not doing recurring sales, you can still store the card. So whenever the customer is ready, they can let you know that it’s OK to receive a payment using the payment method on file. In this case, you’d click on your Quick Create, choose Receive Payment, and enter the appropriate information.
The Bottom Line
Just a couple of notes to wrap up: When you’ve got your QuickBooks Credit Card Payments account setup, you can also use it on your mobile device to receive payments and create sales receipts.
For users you want to set up to receive payments but not have access to your QuickBooks Online account, put them in the merchant center as a mobile user. They can then download the GoPayment app and start accepting payments.
You might be thinking, What about the fees? Consider this last thing: I was a die hard, dig-in-my-heels, I’m-not-paying-for-that merchant service hater…. But once I started accepting credit cards, it wasn’t long before I realized that it really is life changing (and much easier than using QuickBooks checks). The time I had spent chasing money was almost twice what I was spending in merchant fees!
Good luck, and enjoy all of that free time you’ll have, now that you know how to use QuickBooks Online for credit card payments!