QB Tax Advisor Accounting

QB Tax Advisor

Accepting credit card payments allows you to get paid quickly and offer flexibility to your customers. QuickBooks provides seamless integration to process credit cards directly within your accounting workflow.

Setting Up Credit Card Payments

The first step is getting credit card processing activated in QuickBooks. Here are the steps for QuickBooks Online vs. Desktop:

QuickBooks Online

  • Enable QuickBooks Payments – this fully integrates payments into QBO.
  • Accept major cards like Visa, Mastercard, AmEx, Discover.
  • Connect your bank account to deposit funds.
  • Customize settings and payment forms.

QuickBooks Desktop

  • Sign up for QuickBooks Merchant Services or use your existing processor.
  • Purchase a credit card reader that links to Desktop.
  • Install the payment processor and enter your merchant account credentials.
  • Set up a deposit account to receive funds.

With a few simple steps, you can start accepting cards through QuickBooks.

Processing Card Payments

Once activated, actually processing credit card payments is very straightforward:

Payment During Invoice/Sale

  • The customer sees the option to pay by card right on the invoice.
  • They provide card details directly through QuickBooks secure forms.
  • The payment automatically applies when the charge goes through.

Over-the-Phone Payments

  • When they call to pay, click Receive Payments in QuickBooks.
  • Enter their name, amount, and select the credit card payment method.
  • Enter the card details provided into the processor.
  • The payment will save directly to that customer’s account.

In-Person with Card Reader

  • When meeting a customer, have them insert/swipe their card.
  • Follow the prompts on the reader to capture their payment.
  • QuickBooks will pair the payment to the customer record.

No more entering or importing external transactions!

Handling Credit Card Refunds

Refunding customers for credit card purchases is easy:

  • Click Receive Payments > Refund to an Existing Payment.
  • Select the original payment transaction.
  • Confirm or change the refund details.
  • Choose to refund directly back to their card.
  • QuickBooks processes the refund instantly.

You can do partial refunds as needed. Refunding through QuickBooks keeps everything reconciled.

Voiding Invalid Credit Card Charges

If you need to fully cancel a credit card charge:

  • Navigate to Receive Payments and find the payment.
  • Click Make Void instead of Refund.
  • Select a reason for the void.
  • The payment will be canceled and reversed.

Voids invalidate the entire transaction, usually due to an error or incorrect charge.

Credit Card Deposits and Reconciliation

To manage card funds:

  • Deposits from credit transactions will show in the Undeposited Funds account.
  • When ready, batch the payments and deposit into your bank.
  • Match deposits to your monthly merchant statements.
  • Reconcile cleared charges in QuickBooks.

Proper reconciliation ensures all payments end up in your real bank account!

Tips for Processing Card Payments

Follow these best practices:

  • Record customer card information securely for future orders.
  • Monitor daily credit card batches and deposits.
  • Review voids and refunds for accuracy.
  • Keep payment forms, readers, and hardware updated.
  • Stay on top of credit card transaction fees and rates.
  • Leverage reporting on payment types, customers, and trends.

Integrated payments through QuickBooks allows you to track your client billing and credit card acceptance seamlessly in one system.

Configuring QuickBooks Merchant Accounts

When setting up credit card processing in QuickBooks Desktop, you can create a new merchant services account or connect an existing one:

  • Research processors like QuickBooks Payments that integrate with Desktop. Compare fees and rates.
  • If creating a new account, complete the application forms from the processor.
  • Enter all required business information and sign agreements.
  • Choose between consolidated merchant accounts or separate ones by location.
  • To link an existing account, provide credentials and gateway info to pair it.
  • Install any card reader hardware/software provided.
  • Activate payment types like credit cards, debit cards, Apple Pay, etc.
  • Test live transactions thoroughly before going live.

Properly establishing merchant accounts ensures your business can accept transactions through QuickBooks integration.

Managing Transaction Disputes and Chargebacks

Despite best practices, some credit card transactions may end up disputed or charged back:

  • Act promptly when notified of a dispute, within timeframes specified.
  • Gather transaction details, receipts, correspondence with customer to contest if appropriate.
  • Be responsive to requests from the processor and card network.
  • For fraudulent charges, begin chargeback resolution procedures.
  • If charge is valid, submit compelling evidence to represent the charge.
  • For invalid charges or customer dissatisfaction, accept the chargeback.
  • Update accounting records accordingly if chargeback successful.
  • Improve processes to prevent future disputes.

Managing disputes and chargebacks properly is crucial for cash flow and merchant account standing.


  • Activate QuickBooks credit card processing for invoices and sales.
  • Accept payments online, over phone, and in-person.
  • Seamlessly record payments to customer accounts.
  • Refund customers quickly when needed.
  • Void incorrect charges through QuickBooks.
  • Reconcile deposits and transactions.

With QuickBooks credit card integration, you can get paid faster, lower payment costs, and provide a professional customer payment experience.

Leave a Reply

Your email address will not be published. Required fields are marked *