Is QuickBooks Payments worth it once you're on QBO?
If you're already running your books on QuickBooks Online, QuickBooks Payments is usually the simplest way to get paid. Here's why we set most clients up with it, and where a separate processor might still make sense.
The rates are simple and there's no separate merchant account to manage
QuickBooks Payments charges 2.99% on invoices and online card payments, 2.5% for in-person card payments through a reader or Tap to Pay, 3.5% for keyed-in cards, and 1% on ACH bank transfers. There's no setup fee and no monthly fee beyond your QBO subscription.
Businesses processing more than $2,500 a month in payments may qualify for a discount of up to 25% off those rates. It's worth asking about, since the standard rate isn't always the rate you end up paying.
Payments land directly in your books
Because QuickBooks Payments is built into QuickBooks Online, a paid invoice or a swiped card doesn't need to be matched to a bank deposit later. It posts to the right account automatically, with the processing fee broken out as its own line. For a business owner, that means fewer unexplained deposits showing up in the bank feed that someone has to track down and categorize by hand.
Instant deposits and built-in dispute protection
You can get paid instantly, including nights, weekends, and holidays, for a 1.75% fee on top of the standard processing rate. QuickBooks also covers payment disputes starting at .99%, up to $25,000 a year and $10,000 per dispute, which is a real cost saving if a client business deals with chargebacks with any regularity.
Where it's not the right fit
If a business already has a payment processor with negotiated rates below what QuickBooks offers, especially at high volume, or needs a payment feature QuickBooks doesn't support, switching isn't automatically worth it. The convenience of everything living in one platform has to be weighed against what you're already paying elsewhere.
Want to turn on QuickBooks Payments?
You can activate QuickBooks Payments here.
Not sure what you're actually paying to get paid?
A Vibe Check is a good place to start. We'll look at your current setup and whether it's still serving you. No pressure, just a clear picture. Schedule yours here.
Keep reading
- What QuickBooks Online gets right, and where it stops making sense — the platform QuickBooks Payments is built into.
- Bookkeeping basics: what you need to track — the records every small business needs, regardless of what software you use.
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