Does your e-commerce business need to accept credit card payments? Do you use QuickBooks? If you answered ‘yes’ to these questions, you probably have one more – how much does QuickBooks charge for credit card payments?
In this comprehensive guide, we’ll look at credit card processing rates, break down all the fees associated with processing credit card payments on QuickBooks and help you understand how much you can expect to pay for them. We’ll also provide tips on how to save money by using the right payment processing services.
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What are credit card processing rates?
Your credit card processing rate is the price you pay for all the services involved in a transaction. This includes the fees charged by your merchant service provider, processor, issuing bank, and card association. The interchange fee is fixed and cannot be negotiated but there may be opportunities to reduce your communications and processing fees. For instance, merchants who process more than $7,500 a month can expect a 40% transaction discount with QuickBooks. This could be beneficial if you’re processing large amounts of payments. It’s important to compare rates as this could potentially save you money in the long run. Additionally, make sure that you do your research to find out which processor is best for your business. Ensure that the processor has all the features you need such as fraud prevention and online payment processing. By understanding the different types of payment processing fees, you can ensure that you get the best rate for your credit card processing rate.
How are QuickBooks credit card processing fees decided?
When a merchant processes a payment with a credit card, there are three distinct entities involved: the credit card issuer, the credit card network, and the payments processor. For the ability to process a card, the credit card issuer charges the seller a certain commission or fee. This fee is usually calculated as a percentage of the transaction and a flat fee. The most common credit card issuers are Chase, Citi, and Capital One, who partner with internationally recognized networks such as Visa and Mastercard. Lastly, payment processors also charge a portion of the transaction as well as a flat fee per transaction and their responsibility is to facilitate the secure exchange of information and funds.
By understanding how credit cards are processed, merchants have more control over their finances and can make informed decisions about which payment methods they choose to accept. Furthermore, this knowledge also helps merchants budget for processing fees since they now have an idea how much each transaction will cost them. Whether it be through digital payment platforms or physical cards, merchants should take advantage of this useful information to better manage their business expenses while improving customer satisfaction.
What goes into QuickBooks credit card processing fees?
When it comes to credit card processing fees, QuickBooks Payments offers a variety of options for businesses. They take into account a variety of factors such as PCI-compliance fees, chargeback fees, assessment fees, interchange fees, and annual account fees. It’s important to note that QuickBooks Payments does not charge any monthly fees or setup fees. The transaction fees are dependent upon the method used when processing payments; swiped, invoiced or keyed, plus there’s a flat fee per transaction. This makes it convenient for businesses who are seeking an affordable payment solution that is tailored to their specific needs.
What merchants like about QuickBooks Payments is their instant or next-day deposits. This helps business owners have more control over their cash flow and gives them peace of mind knowing they can access funds quickly. Furthermore, it helps business owners stay on top of their finances since they have access to real-time updates and data on all their payments. This allows them to make educated decisions to help improve their bottom line and maximize the return on their investments.
How much does QuickBooks charge for credit card payments?
QuickBooks offers reliable, secure and affordable credit card processing solutions for businesses of any size. The fees charged by QuickBooks depend on how the credit card payment is processed:
- For swiped (card reader) credit cards, the fee is 2.4%, plus a flat fee of $0.25 per each transaction.
- For invoiced credit cards, the fee is 2.9%, plus a flat fee of $0.25 per each transaction.
- For keyed credit cards, the fee is 3.4%, plus a flat fee of $0.25 per each transaction.
Note that you’ll pay only 1% for AHC payments, with a maximum of $10 per transaction.
You’ll be charged the lowest amount for swiped credit cards because those transactions are considered to be the most secure. When a merchant swipes the card, they can verify the cardholder’s information in person.
How to save money on QuickBooks credit card processing fees
Now that you understand what QuickBooks credit card processing fees are and how much they cost, let’s take a look at how you can save money on these fees.
The first step is to shop around for the best payment processing service for your business. Different payment processing services have different fees, so make sure you compare different services to find the one that offers the lowest fees for your business.
In addition to shopping around for the best payment processing service, you can also save money on QuickBooks credit card processing fees by using the right payment methods. For example, if you want to accept payments via PayPal, you can save money by using the PayPal Express Checkout feature, which charges a lower fee than the standard PayPal processing fee. Similarly, if you want to accept payments via ACH, you can save money by using the ACH Direct feature, which also charges a lower fee.
Finally, you can also save money on QuickBooks credit card processing fees by taking advantage of the payment processing services that QuickBooks offers. For example, if you are processing invoices or recurring payments, you can save money by taking advantage of the specialized services that QuickBooks offers for these types of payments.
The fees you pay when you accept credit cards are the single largest expense associated with running a business, second only to payroll. Because of this, it’s important for merchants to be aware of how credit card processing rates are calculated and what you can do to save money. If you accept payments online, you’ll need to make sure that your business is properly set up for credit card processing.
We hope that after reading this small guide you’ve got a better understanding of QuickBooks credit card fees and can make informed decisions about your business.
Want to read more about QuickBooks basics? Check out our articles on QuickBooks accounts receivable, QuickBooks trial balance.