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Diane_Narwhal
March 2, 2023
Question

QuickBooks Payment Processing Charges more for AutoPay

  • March 2, 2023
  • 1 reply
  • 0 views

Everything I have read says that "the fees for AutoPay are the same as for any payments made through QuickBooks Payments."  We have some auto invoices set up and I have a customer that signed up for autopay.  We did not enter the credit card information - the customer signed up through the invoice to autopay.  And I'll add that we have no access to their credit card information, it is saved in their own intuit account.

 

Our other invoices that are not on autopay that pay via. credit card are being charge 2.9% which is the listed rate for "credit card - online invoice.  For the one that signed up for autopay we are being charged 3.4% which is the rate for "credit card - keyed".  When I ask the Intuit "Experts", I'm told that since the customer "keyed" in the credit card information and saved it - it is now being billed as "keyed".  Apparently it only counts as "online invoice" if a customer enters the information "fresh" on each invoice?

 

I don't get it - the customer still is paying for an online invoice even when they decide to enable autopay from an online invoice.  We only bill online - no card swipe, no keying in the credit card info.  all invoicing online with customer interfacing directly with QB payments.

 

If this is the way it really is supposed to work (doesn't make any sense to me),  Quickbooks needs to be upfront in their fees and specify that autopay costs more.

1 reply

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LollyNino_C
March 2, 2023

Welcome to the Community, Diane. I can see how beneficial it is to your business and your client to have the option to auto-deduct their bank account when paying invoices online. QuickBooks Online (QBO) values your account security and privacy. 

 

Let me share some information that will help you understand more about the fees for QuickBooks Payments. 

 

The amount you'll pay usually varies, and it depends on how you process the transaction. The transaction fees will depend on whether you process the card through swipe (2.4%), invoice (2.9%), or key (3.4%), plus a flat $0.25 fee per transaction. 

 

If you'd like to check if Autopay is set up for an invoice, view the Activity Tracker. Let me show you how:

 

  1. Go to Get paid & pay and select Invoices. 
  2. Find the invoice you wish to check for payment status.
  3. Select the status field of that invoice line to bring up the activity tracker panel.

 

When you see the Autopay Scheduled status under the invoice activity section, then you know your customer set up Autopay. 

 

There will be no fees for the customers when they pay. This article can provide a much clearer view regarding the charges: What are the fees for QuickBooks Payments?

 

In case you need assistance with your QuickBooks Payments account, I recommend contacting our Merchant Services Team.

 

You can also check the article about the deposit times if you're expecting payment and detailed steps on setting up automatic credit card payments for recurring invoices:

 

 

If you need further assistance managing your invoices in QBO, let me know in your reply. I’ll be around ready to help you. Keep safe and take care! 

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Diane_NarwhalAuthor
March 4, 2023

LollyNico_C, none of your response clarifies the issue I have with the Payment Processing Fee.

 

Please define credit card processing via "invoice" (2.9% fee) and "key" (3.4% fee).

 

I interpreted it as:  if the customer pays an electronic invoice and keys in their credit card information (after following the link on the invoice) it is considered "invoice" and if the merchant keys in the credit card information it is considered "key".

 

When I send out an invoice and a customer pays the invoice by clicking the link and entering their credit card information, I'm charged the "invoice" fee (2.9%) with one exception. 

 

Please explain why when a customer clicks the link on an invoice and signs up for autopay (to do this they are required to log into their own intuit account), the payments are then considered "key" and are charged 3.4% fee.

 

M
megarooter
May 26, 2023

I have this same question and the call center gives the same written explanation above, that DOES NOT answer the question. I haven't signed up for QB payments yet because I need to know - when is a payment considered 'keyed'. If I've created an invoice, I expect to be charged the 'invoiced' fee. can someone please answer these questions only.

 

1. WHEN IS A PAYMENT CONSIDERED 'KEYED'

2. WHEN IS A PAYMENT CONSIDERED 'ONLINE INVOICE'

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