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QBO Update: New Option To Pay Online On Invoices With Payments Turned Off

Starting on October 21, QuickBooks will begin rolling out a new feature for businesses with an active QuickBooks Payments account.
 
This update gives customers (payors) the option to pay an invoice online by ACH bank payment, even if payments are not enabled.
 
In this post, I’ll explain what this feature means for your business, how it works, and what to do if you want to adjust the settings.
 

What’s Changing?

In the past, when you sent an invoice without enabling any online payment options, customers didn’t have the ability to pay electronically.

With this new feature, QuickBooks will provide ACH bank payment as an option for customers to pay online. Even if other payment methods like credit cards or PayPal are turned off.

How Does It Work?

Here’s how the new ACH bank payment feature works:

  • For Merchants with Active QuickBooks Payments Accounts: If you have an active QuickBooks Payments account and send an invoice with all online payment options disabled, your customer will still have the option to pay online via ACH.
  • Convenience Fee for the Payor: While there’s no cost to you (the merchant), the customer (payor) will be charged a small convenience fee to use this ACH payment option.
  • 5-Day Settlement Period: ACH payments will be subject to a 5-day deposit settlement period, after which the funds will appear in your account.
  • No Impact on Your Books: The convenience fee won’t appear in your accounting records, so you won’t need to do any additional work.

How to Tell If You Have an Active Payments Account

Follow these steps to find out if you have Active Payments turned on:

  1. Click the gear in the upper right corner
  2. Click Account and settings in the YOUR COMPANY column
  3. Click Payments in the left side menu

If you see a green Manage account button in the Merchant details section, you have Active Payments turned on.

If you have Active Payments turned on in QBO you'll see the Manage account button in the Merchant details section of Account and Settings

How to Manage the New ACH Payment Option

By default, this new feature will be enabled automatically for QuickBooks Payments customers.

If you’d prefer not to offer this option you can turn it off by following these steps:

  1. Click the gear in the upper right corner
  2. Click Account and settings in the YOUR COMPANY column
  3. Click Sales in the left side menu
  4. In the Invoice payments section, find a box labeled Your customer pays the fee, uncheck the box
  5. Click the Save button
  6. Click Done in the lower right corner

Intuit provided a link to a form in the email I received to leave comments/feedback on this new feature.

☕ If you found this helpful you can say “thanks” by buying me a coffee… https://www.buymeacoffee.com/gentlefrog

Below is a video if you prefer to watch me go through this.

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This content is for information purposes only and should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Gentle Frog, LLC does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Gentle Frog, LLC does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers and viewers should verify statements before relying on them.

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