All About QuickBooks Credit Card Processing You Should Know

Can I process credit cards through QuickBooks? How do I handle credit card payments in QuickBooks? What is the credit card processing fee in QuickBooks? If such queries are stuck in your mind, then you are landed on the right platform. Here you will learn all about QuickBooks credit card processing. Read the article and solve your doubts. If you need expert help, dial our toll-free number +1-844-405-0904.

QuickBooks lets your customers pay by debit or credit card in a fast and secure way. With QuickBooks Credit Card Processing, it becomes easy to process credit cards, track payments, and bookkeeping. Previously, QuickBooks doesn’t have a credit card processor. Just process credit cards and let QuickBooks record your payments automatically. 

What is Credit Card Processing

When the payment is made via credit card, it takes a few seconds to complete the transaction. Credit card processing occurs quickly and makes the payment successful.

For starting with credit card processing, you need to open a merchant account and get approved through QuickBooks. Merchant accounts offer online payment gateways, credit card processing, online support, and more. 

When the payment is made, it takes a few seconds for your customer’s bank to tell the network if the credit card payment is successful or not. Then the card passes the information to your credit card processor. 

If you are a new QuickBooks payment user and made a payment before 3 PM, you can find the credit card payment in your account the next day. 

How Does QuickBooks Credit Card Processing Work

QuickBooks credit card transactions need a little time to be approved or denied. During that time, it goes through two different processes. Let’s discuss what are they:

Payment Authorization

First, you need to authorize the card details and the amount by the card holder’s bank. It takes a few seconds to get the transaction approved or denied. Let us explain what happened behind the scene.

When the credit card swipes, the merchant credit cards machine sends the card information and transaction details to the merchant bank. Bank sends information to the cards network (Visa, Mastercard, American Express, and Discover). The card network passes the information to the cardholder’s bank. The cardholder’s bank checks the card details to make sure the transaction is genuine. Then the cardholder’s bank sends the response to the merchant’s bank via card network. 

Payment Settlement

The second process of credit card processing is a settlement. Generally, the merchant sends all the authorization information to his bank at the end of the day. Then the bank confirms the authorization and passes it to the cardholder’s bank via card network. The merchant bank deposits the funds to the merchant account. The card holder’s bank pays the amount to the merchant bank. The card network debits the card holder’s bank and credits the merchant bank. So the card network works as a middle-person between both banks.

Transactions Cost

You can process credit cards and record payments automatically in QuickBooks. The status of the deposit can be checked in QuickBooks. QuickBooks charge different rates per transaction. Have a look at the cost mentioned below:

Fee typeQuickBooks OnlineQuickBooks Desktop “Pay as you go” PlanQuickBooks Desktop “Pay monthly plan”
Monthly feeNone$0$20
ACH Bank transfer1% (Max $10)$3$3
Credit card- swiped2.4% + 25¢2.4% + 30¢1.6% + 25¢
Credit card – online invoice2.9% + 25¢3.5% + 30¢3.3% + 30¢
Credit card- keyed3.4% + 25¢3.5% + 30¢3.5% + 30¢
Rates per transaction

Virtual Terminal in QuickBooks

You can accept credit card payments anywhere even if the customer is not physically present. All you need is an internet connection and it will work like a credit card processor or a cash register on your system. Just enter the credit card details into a credit card processing tool and then submit for the online payment. It can be accessed through mobile, computer, and laptop. It saves the customer info so that you can go faster next time. 

Deposit times for all the transactions in QuickBooks are the same. Only the prices are different for the transactions. For the new QuickBooks Payments users, a credit card deposit takes place on the next business day. 

PCI DSS Standards

As a merchant, you need to have payment security. Payment Card Industry Data Security Standards (PCI DSS) is a list of practices that the merchant must follow for his and customers’ data security. This makes sure that the transaction is securely handled, processed, and stored the sensitive payment card data.

Who Must be PCI Complaint

If you are a merchant who stores and accept Visa, Master Card, Discover, American Express, or JCB payment debit and credit cards, then you need to be PCI compliant and follow PCI DSS standards. QuickBooks make sure that your PCI compliance is ensured. Using QuickBooks Payments services doesn’t mean you are already a PCI complaint.

What Happens If Someone Is Not PCI Compliant

If you did not follow the PCI DSS standards, you are at risk of breaches, fines, hackings, forensic audits, and investigations. If a breach occurs, you will be liable for fines, legal fees, and damages. You can be liable for $50,000 – $773,000+ including all the fines. 

PCI Compliance Fee

You need to check whether your credit card processing provider offers PCI compliance or not. Some credit card processing providers charge you for it, while some offer these services without a fee. The fee runs around $20 – $30 per month. It can be billed monthly or yearly and includes data breach insurance, security scans, and customer education. 

Frequently Asked Questions

How are QuickBooks credit card processing fees decided?

Credit card processing fees are decided by the credit card issuer, card network, and payment processor. The credit card issuer partner with the card networks. The card issuer charges the merchant a commission for processing the card. The charge is calculated on the basis of percentage and the flat fee on each transaction. 

What should I do to get started virtual terminal? 

To get started with a virtual terminal, you need to have a QuickBooks account and an active payment processing account.

What is a credit card authorization form?

A credit card authorization form is a document signed by your customer that grants the merchant permission to charge the customer’s credit card for an agreed amount of time written on the document. Merchant uses this form to charge recurring payments to cardholders. 

We have discussed QuickBooks credit card processing and hope you understand very well. If you have any queries, get solutions from an expert. Connect to our QuickBooks ProAdvisor by dialing our toll-free number +1-844-405-0904.

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