How to Process Credit Card Payments in QuickBooks Online

Setting up your QuickBooks credit card payments account is an important next step after configuring your QuickBooks Online subscription. Accepting credit card payments simplifies the process for your clients or customers to pay you and saves you time in processing payments.

It is simple to set up an account to process credit card payments in QuickBooks online. In this article, we have mentioned everything that you need to know.

Setting Up QuickBooks Credit Card Payments

  • Click the gear icon that is in the upper right corner of QuickBooks Online and select “Account and Settings” to open a new Credit Card Payments account:
  • Next, select the “Payments” tab from the menu on the left:
  • Next, pricing details will be displayed to you (note: your QuickBooks Credit Card Payments fee is nothing and void if your customers choose for bank transfers).

Enter the following details about your business:

And the primary or owner of your company:

Finally, enter the details for your business bank:

If you are approved, you’ll know right away, and your QuickBooks Credit Card Payments will be available to use within about 24 hours.

You can contact support to find out why you are not approved. Please be advised that it might not always be a credit issue; it might be that the industry in which your company operates is one that they haven’t approved (for example, medical marijuana).

Managing Your QuickBooks Credit Card Payments Account

After your account has been approved, you can select Account and Settings from the gear icon, click the Payments tab once more, and confirm the connection and you can change the way transactions are handled.

Next, select the bank account and expense account for merchant fees that you want deposits to post to in your QuickBooks Online chart of accounts.

Click the “Manage Account” button to view a history of transactions or change your QuickBooks Credit Card Payments settings.

When you click that button, will open as a new page. From here, you can manage users who are solely using your phone, set alert preferences, access support and resources, and, if necessary, change the bank account. You can also review the entire history of QuickBooks Credit Card Payments transaction history.

Creating transactions

You can now start creating transactions and receiving payments after your QuickBooks Credit Card Payments are set and ready to go.

Let’s take a look at the invoicing process, from your perspective as well as that of your clients.

  • Firstly, you have to set a preference to make sure that your customers will view the invoice by the Online Invoice portal. Click the gear button, select Account and Settings, and then select the Sales tab to do this.
  • Make sure the checkbox next to “Attach invoice as PDF” is not checked when you click on the “Online delivery” section. The invoice should not be attached since you want the receiver to view it on the invoice portal and have the option to pay there.
  • You are now prepared to send an invoice. One of the easiest method to create an invoice is that you can click on the Quick Create button that is in the top right of the corner and then you can choose Invoices. (Quick Create is the word for that spinning plus sign in QuickBooks.)
  • After the invoice form opens, simply complete it normally, making sure to check the online payment methods you will take, and then click the “Save and send” button in the lower right corner.
  • Before sending the email, you can make any changes to the subject line and body on the next screen. If you forgot to include a payment option while creating the invoice, you can also add one or change your mind about it.
  • You can click the Send and Close button once everything looks good.

You’re done as long as your customer makes their payment online. Below, I will show you what I mean.

Customer online invoice portal

Your customer will receive an email when you send them the invoice (without the invoice attached as a PDF) with a button they may click to view their invoice. They can view the invoice whenever they’d like to and they are able to go back, as long as they don’t delete the email.

They will be directed to the Online Invoice Portal after clicking “View Invoice,” which is where the QuickBooks Credit Card Payment really works. The customer can print, save, and pay the invoice as a PDF from the Online Invoice Portal.

The customer selects a payment option and enters their information after clicking the “Pay Now” button. To save their payment details for later use when they get an invoice from a QuickBooks Online user, they can also choose to create an account.

The consumer has decided to make their payment with a credit card. After selecting the payment amount (which may not exceed the outstanding balance on the invoice), customers will be asked to enter the cardholder’s name, card number, expiration date, CVV code, and billing ZIP code.

They will see a confirmation on their screen and the Online Invoice Portal will indicate that the invoice has been paid once they click the “Send payment” button.

A link to the invoice on the Online Invoice Portal will be included in the email they receive along with the payment confirmation.

QuickBooks Online marked as paid

I already informed you that, if you are using QuickBooks Credit Card Payments, your work is finished as soon as the invoice is received. You only need to accomplish the remaining tasks via QuickBooks Online.

Upon receiving payment from your client, you will also receive an email confirming your payment, and upon opening the invoice in QuickBooks Online, you will see that it now has a paid status along with a link to the payment in QBO.

When you click the link from the invoice, you’ll see the receive payment screen; this will show you the date, and amount and that the transaction has been processed using QuickBooks Credit Card Payments.

QuickBooks Credit Card Payments enters the deposit for you as soon as it clears your bank.

Better yet, QuickBooks Credit Card Payments includes the merchant fee magically into the transaction if the customer pays with a credit card!

Also Read: QuickBooks Connection Diagnostic Tool

Storing Payment Information in QuickBooks Online

You can keep your customers bank or credit card information and ask them to complete out a payment permission form in addition to making invoices and delivering them to consumers. All but the final four digits of the payment are hidden once you enter the information, and QuickBooks Online and QuickBooks Credit Card Payments comply with PCI standards.

Depending on the client’s request, you can save bank routing/account numbers, MasterCard, Visa, Discover, or American Express cards. Multiple cards or accounts cannot be stored.

Simply click the Quick Create button, then select Sales Receipt, then scroll up a little to have another look at that adorable GIF if you’d like. Fill out the form as usual, making sure to select the payment method you recently added.

The best thing about using QuickBooks Credit Card Payments is that if you have an accounting tool for recurring sales, then you can choose to turn a sales receipt into a recurring transaction. It means that QuickBooks Online will create new sales receipts automatically at whatever time you want to set.

Additionally, it charges the card or drafts the bank and emails a copy to you and the customer at the same magical moment if you have the payment information stored.

You have the option to store the card even if you are not doing recurring sales. The customer can therefore notify you when they’re ready to accept a payment using the payment method that is on file. In this case, click Quick Create, select Receive Payment, and provide the appropriate information.


You ought to be able to use QuickBooks Online to handle credit card payments by following the instructions provided here. Your financial management will improve and your payment processing will run more smoothly as a result. For more assistance to process credit card payments in QuickBooks Online, please get in touch with the help desk if you run into any problems or have any more inquiries.

Frequently Asked Questions (FAQs):

Q 1. Can I process credit card payments outside of QuickBooks Online?

Ans. Yes, but using QuickBooks Online streamlines the process and ensures your financial records are automatically updated.

Q 2. Are there any fees associated with processing credit card payments?

Ans. Yes, QuickBooks Payments charges transaction fees for processing credit card payments. These fees vary depending on the type of card and the transaction method (e.g., swiped, invoiced, keyed-in). 

Q3. How long does it take for credit card payments to be deposited into my bank account?

Ans. Credit card payments processed through QuickBooks Payments typically take 1-2 business days to be deposited into your bank account. However, the exact time may vary depending on your bank and the type of transaction.

Q4. What should I do if I encounter an error while processing a credit card payment?

Ans. If you experience any errors, double-check the information entered and ensure your internet connection is stable. If the problem persists, please contact the help desk.

Q5. What types of credit cards can I accept through QuickBooks Online?

Ans. QuickBooks Online allows you to accept major credit cards including Visa, MasterCard, American Express, and Discover. 

Q6. How can I accept credit card payments from customers?

Ans. Once your QuickBooks Payments account is set up, you can accept credit card payments by:

  1. Creating an invoice and selecting “Credit Card” as the payment method.
  2. Sending the invoice to your customer, who can then pay online using their credit card.
  3. Alternatively, manually enter the credit card information if you have the card details from the customer.

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