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jay87
September 9, 2021
Solved

ACH Debit vs. Quickbooks Payments-Bank

  • September 9, 2021
  • 3 replies
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What the difference between setting up ACH Debit vs. Quickbooks Payments-Bank? Thanks

Best answer by LieraMarie_A

So what method is "Quickbooks Payments-Bank" then if it is not ACH but allows you to enter the bank information of the customer?


Hi there, @jay87. I'm here to clear up the confusion.

 

The ACH Debit and QuickBooks Payments-Bank payment methods are the same. If you're using QuickBooks Payments, you have the advantage to enter the bank details in the customer's profile. This is why you have the option to select the QuickBooks Payments-Bank option. Otherwise, choose ACH Debit if you're using a third-party merchant account.

 

I'm also adding these helpful articles that consist of questions and answers about QuickBooks Payments deposits:

 

Feel free to comment down below if you have any follow-up questions about QuickBooks Payments. The Community is always here to help. Have a wonderful day.

3 replies

JessT
JessT
September 9, 2021

It's great to see you here in the Community, Jay!

 

I'll be happy to provide information about the payment method you mentioned.

 

Bank (or bank transfer) and ACH are the same thing. Speaking of which, please know that this has a faster process compared to credit card payment because you will receive your funds the next day. For more details, please refer to this article:  Find out when QuickBooks Payments deposits customer payments.

 

On the other hand, we also offer a QuickBooks Cash account for Merchants in partnership with Green Dot Bank. It is a bank account where you can deposit customer payments and earn interest.

 

Let me know if you have other queries about QuickBooks Payments. Take care, and wishing more success in your business!

J
jay87Author
September 9, 2021

So if they are the same thing why are there two different options for it? There has to be some difference between the two like fees or something. It doesn't appear you set up ACH Debit like you do Quickbooks Payments-Bank because they one has fields to set-up and the other does not. 

AlexV
AlexV
September 9, 2021

Hello jay87.

 

Let me further assist you with the QuickBooks Payments.

 

If what you meant by Quickbooks Payments-Bank is the bank transfer, this is a payment method where the system process electronic money transfer between banks. It pulls money from your customer's bank account and deposits it into your bank account. It is another term for ACH Debit.

 

With QuickBooks Payments, the transaction fees are based on how the payments were processed. Please visit this microsite for more details: https://quickbooks.intuit.com/payments/.

 

When creating an invoice in QuickBooks Online, under the Online payments section, you can turn on either Cards or Bank transfer. The Cards allows your clients to pay the invoices using credit cards while the Bank transfer is for ACH Debit or also called the bank transfer. 

 

You'll want to check this link: QuickBooks Payments FAQ. This contains different articles to understand how to use this service.

 

Keep on posting here if you have other clarifications. Take care!

MJoy_D
MJoy_D
August 25, 2022

I can share some information about our rates per transaction for QuickBooks Payments, @jay87.

 

Yes, you're right! Our rate per transaction for ACH bank payments is 1% (max $10 per transaction). For more information about payment fees for invoicing, using a card reader, and keyed transactions, refer to this link: Payments pricing.

 

In case you'd need to void and refund a transaction, here's how to void or fully refund a transaction and partially refund or credit a transaction: Void or refund transactions in QuickBooks Payments. To know the fee that you may incur, see this guide: Understand fees for refunds or void transactions. It'll be based on your pricing plan and transaction type. 

 

For more information about when QuickBooks deposits customer payments into your bank account, refer to this article: Find Out When QuickBooks Payments Deposits Your Money.

 

Let me know if you still have follow-up questions about QuickBooks payments or any other concerns. I'm always here to help. Have a wonderful day!

A
amyworking12
February 24, 2023

I would like to know how to issue a refund to a customer who paid via Bank Transfer in Quickbooks Payments?  Please help, this customer is requesting a refund right away in the same manner as he paid.

 

A
AileneA
February 24, 2023

Hello, amyworking12. 

 

Regarding of the payment method, we were unable to make a refund via bank transfer in QuickBooks Payment. The option to process the refund to a customer in QuickBooks is via credit card, checks, and cash payments. However, you can make an internal arrangement with your customer about how he/she wanted to receive the refund.  

 

To send an actual refund to the customer’s account to reverse the transaction. Here's how:

 

  1. Log in to QuickBooks Payments.
  2. Click the Processing Tools drop-down and select Reverse a Transaction.
  3. Enter the details asked and click Search.
  4. Select the transaction you want to reverse and refund.
  5. Hit Submit.
     

Check out the Void or fully refund a transaction section in this article for more information: Void or refund transactions in QuickBooks Payments. 

 

In case you need tips and related articles in the future, visit our QuickBooks Community help website for reference: QBO Self-help. 

 

Please let me know if you have further questions about processing refund. I'll be around. Have a great day.

K
kateBBA
August 9, 2023

AileneA - this refund process doesn't seem to work. I'm following the instructions provided, but it is only giving me the "Reverse a transaction" option under credit card transactions - it does not give me the option to reverse or search for a "QuickBooks Payments - Bank" ACH transaction to refund. I also searched under the "Reverse an eCheck" just to see if that's how it was being referred to, but the transaction is no where to be found. 

 

Can anyone please provide actual instructions on how to refund a payment that was made via "QuickBooks Payments - Bank" transfer and not a credit card? 

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