Is Intuit Quickbooks Payments Right for Your Business?

Intuit quickbooks payments taxes

If you’re not familiar with Quickbooks yet, it is most commonly used as bookkeeping software. It has the ability to send invoices, as well as clean and easy-to-read reports. Your CPA receives those reports and uses them to file taxes. You can track what you send to which customers and see lists of what customers you have. All together, Quickbooks is popular and useful accounting software, but they also offer merchant services. Intuit Quickbooks payments have a very different reputation, and we’ll explain why.

Intuit quickbooks payments taxes

Intuit Quickbooks Payments is Integrated

Credit card transactions in Quickbooks are handled by Intuit Payments. Intuit owns the Quickbooks accounting line of products, including Quickbooks online. They also own Intuit payments, and payments taken through Quickbooks are automatically reconciled to customer invoices.  For this reason, Intuit Quickbooks Payments is helpful for business owners that don’t have a lot of time to learn something new. However, if you choose Intuit Quickbooks Payments, you had better be willing to throw extra cash at their expensive credit card processing rates.

Their Card Processing Fees Aren’t Worth It

Intuit Quickbooks merchant services operate on a flat rate program. This is an expensive pricing model for businesses processing over $6,000 per month in credit card sales. A flat-rate model charges you a consistent percentage of every transaction, no matter the card type. The problem with this model is that they rake in huge profits when processing cheaper card types, like debit cards. We recommend an interchange-plus pricing model, which charges a small fixed amount of profit over the true cost to process the card (called interchange).

flat vs interchange Intuit quickbooks payments taxes

Intuit Quickbooks Payment Processing Fees:

2.4% per card swipe

2.9% per invoice (card keyed in by cardholder)

3.4% per keyed sale (card keyed in by merchant)

$0.25 charge per transaction

$9.95/month PCI fee for their no-monthly fee plan (Ironic, right? You’ll need to read they’re fine print to find this one.)

Get Lower Rates

PayFrog has the ability to integrate payment processing systems directly into Quickbooks desktop versions and Quickbooks Online. By doing this, you can get lower rates, and still have a Quickbooks integration! This specialized 3rd party integration comes with a monthly fee, so typically businesses processing $6,000 per month or above in credit card sales will still save money on this plan. If you don’t need a direct integration into Quickbooks, then businesses processing $3,000 per month or above in credit card sales will still save money.

If you accept payments in an office setting or send invoices, why not get a better rate than Intuit Quickbooks Payments can offer? This way, you get all of the ease of use out of their great bookkeeping, but don’t pay for their expensive Quickbooks payment fees. If this sounds like something you’d like, please contact us for a free consultation.

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