New QuickBooks Invoice Payment Feature: Make Customers Pay the ACH Fee
QuickBooks has introduced an update for users of QuickBooks Payments that streamlines how invoices are handled and paid. As of October 21, a new option has been available, allowing payors to cover a convenience fee when paying an invoice by ACH bank payment—even if the invoice isn't enabled for other online payment methods. Keep reading to find out what you need to know about this new feature.
Why This Update Matters
This update addresses a common pain point for QuickBooks users: finding a simple way to pass processing fees to customers without modifying invoices or making complex fee calculations. With this new feature, QuickBooks Payments users can enable customers to pay a flat convenience fee when using ACH, allowing for faster payments with no cost to the merchant.
How the New Feature Works
- ACH Payment Option: If you send an invoice with all online payment methods disabled, the payor will still have the option to pay by ACH. This method is convenient and secure, with a standard 5-day deposit settlement period.
- No Cost to Merchants: The convenience fee for the ACH payment is charged to the customer, not the business. This means businesses can receive payments without incurring fees.
- Accounting Impact: The fee paid by the customer does not appear in your books and doesn't require additional journal entries, keeping your accounting process clear and simple.
Turning Off This Option
For those who prefer not to offer this option, QuickBooks has made it easy to opt out:
- Navigate to Account & Settings.
- Click the Sales tab.
- Go to the Invoice payments section.
- Uncheck the box next to "Your customer pays the fee".
This will disable the ACH payment option for all future invoices.
Benefits of This Update
- Simplicity: Your customers now have an online payment option, even if other methods like cards or PayPal are turned off.
- Control: You can decide whether or not to enable this feature.
- Efficiency: ACH payments are a reliable and cost-effective way to get paid quickly, at no cost to you.
Final Thoughts and Recommendations
This new feature in QuickBooks Payments provides an efficient way for customers to pay while allowing businesses to maintain flexibility in their payment options. It's a great way to remove manual adjustments and complex fee calculations, ensuring a smoother invoicing process.
For more detailed information on how this feature works, including refund processes and additional settings, please read QuickBooks' support guide.