Does Quickbooks Charge A Fee For Credit Card Payments?
QuickBooks is a popular accounting software used by businesses of all sizes to manage their financial transactions. One of the key features of QuickBooks is the ability to accept credit card payments from customers. However, many users wonder if QuickBooks charges a fee for credit card payments and how it compares to other payment processors. In this article, we will explore the fees associated with credit card payments in QuickBooks and provide valuable insights for businesses considering this payment option.
Understanding QuickBooks Payments
QuickBooks Payments is the built-in payment processing service offered by Intuit, the company behind QuickBooks. It allows businesses to accept credit card payments directly within the QuickBooks software, making it convenient for both the business and its customers. With QuickBooks Payments, businesses can send invoices to customers and receive payments online, track payment status, and automatically update their books.
Fees for Credit Card Payments in QuickBooks
When it comes to fees for credit card payments in QuickBooks, there are two main factors to consider: the processing fee and the transaction fee.
Processing Fee
The processing fee is a percentage of the total transaction amount and is charged by the payment processor. In the case of QuickBooks Payments, the processing fee varies depending on the type of transaction and the payment method used. For example, the fee for swiped or dipped transactions is lower than the fee for manually entered transactions.
As of the time of writing, the processing fee for swiped or dipped transactions in QuickBooks Payments is 2.4% + $0.25 per transaction. This means that for a $100 transaction, the processing fee would be $2.65. For manually entered transactions, the fee is 3.4% + $0.25 per transaction.
Transaction Fee
In addition to the processing fee, QuickBooks Payments also charges a transaction fee for each credit card payment. The transaction fee is a fixed amount per transaction and covers the cost of processing the payment. Currently, the transaction fee in QuickBooks Payments is $0.25 per transaction.
Comparing QuickBooks Payments to Other Payment Processors
Now that we understand the fees associated with credit card payments in QuickBooks, let’s compare it to other popular payment processors to see how it stacks up.
PayPal
PayPal is a widely used payment processor that offers a range of services for businesses. When it comes to credit card payments, PayPal charges a processing fee of 2.9% + $0.30 per transaction for online payments. This is slightly higher than the processing fee in QuickBooks Payments for swiped or dipped transactions. However, PayPal does not charge a separate transaction fee, making it a more cost-effective option for businesses with a high volume of transactions.
Square
Square is another popular payment processor known for its simplicity and ease of use. Square charges a processing fee of 2.6% + $0.10 per transaction for swiped, dipped, or tapped payments. This is slightly lower than the processing fee in QuickBooks Payments for swiped or dipped transactions. However, Square also charges a separate transaction fee of $0.10 per transaction, making it less cost-effective for businesses with a high volume of transactions.
FAQs
1. Can I accept credit card payments in QuickBooks?
Yes, QuickBooks Payments allows businesses to accept credit card payments directly within the QuickBooks software.
2. Does QuickBooks charge a fee for credit card payments?
Yes, QuickBooks charges a processing fee and a transaction fee for credit card payments. The processing fee is a percentage of the transaction amount, while the transaction fee is a fixed amount per transaction.
3. How does QuickBooks Payments compare to PayPal?
QuickBooks Payments and PayPal have similar processing fees for credit card payments. However, PayPal does not charge a separate transaction fee, making it a more cost-effective option for businesses with a high volume of transactions.
4. What is the processing fee for swiped or dipped transactions in QuickBooks Payments?
The processing fee for swiped or dipped transactions in QuickBooks Payments is 2.4% + $0.25 per transaction.
5. Does Square charge a fee for credit card payments?
Yes, Square charges a processing fee and a transaction fee for credit card payments. The processing fee is slightly lower than the fee in QuickBooks Payments for swiped or dipped transactions, but Square also charges a separate transaction fee.
6. Can I track payment status in QuickBooks?
Yes, QuickBooks Payments allows businesses to track the status of their payments, making it easier to manage their cash flow and reconcile their books.
Summary
QuickBooks Payments offers businesses the convenience of accepting credit card payments directly within the QuickBooks software. While there are fees associated with credit card payments in QuickBooks, they are competitive with other popular payment processors such as PayPal and Square. Businesses should consider their transaction volume and the specific needs of their business when choosing a payment processor. By understanding the fees and comparing different options, businesses can make an informed decision that best suits their needs.