Get paid faster using QuickBooks Payments | QuickBooks Connect

[Music] hey everybody this is alicia katz pollock from royalwise.com and welcome to get paid faster with quickbooks payments we're going to spend our our session talking about how you can use quickbooks payments so that you can have your clients pay you faster so let's go ahead and get started so quickbooks payments help you helps you simplify getting paid by your clients so whenever you're providing goods or providing services you can focus on those services and not worry so much about the money by using quickbooks payments it's completely integrated into your quickbooks online so it allows you to accept payments automate your invoices and then take advantage of a whole lot of different kinds of automation along the way so that you don't have to spend your time crunching your numbers you can spend your time with your clients so we're going to take a look at all of the different features and how it works let's go ahead and get started so here are all the different things that we're going to talk about in this session i'm going to talk about quickbooks payments all the different payment methods that you can use through it or accept through it i'm going to do some terminology like swiped versus keyed rates i'm also going to show you how to sign up for it then we'll take a look at how to use the swiper the go payment app how to use the review and pay button to get paid through invoices also how to automate it so that your customers can pay you automatically without you even lifting a finger we'll take a look at all the different types of integration with quickbooks online including the deposit screen and the merchant services portal so we have a lot to cover but you're going to learn a lot so let's start with why should you choose quickbooks payments as your merchant services so the beautiful thing about it is that it's completely integrated into your quickbooks online and there's a lot of different ways that you can use it to get paid by your customers one way is that when you write an invoice and you send it through email there'll be a review and pay button in it and your customer can just click on the button be taken to a portal where they can put in their payment information and pay you electronically and the beautiful part about that is that when they do that quickbooks online will actually create the receive payment transaction for you put it in undeposited funds group all the payments into a batch for you and match it to the bank feed and you don't have to lift a finger it does all of that for you all you did was send the invoice and quickbooks online takes care of literally all the rest of it the good news is that it also works with over 20 different e-commerce shopping carts so if you're using woocommerce or shopify you can actually use quickbooks payments as your payment gateway either instead of or in addition to the other options that they give you and because you're using this automation it saves you so much time now some of you have merchant services through your bank and i hear this a lot they're like oh well my merchant services through my bank gives me a one percent fee rate so it's a lot cheaper but that's pennywise pound foolish because you may be saving yourself the fees up front but when you're running your merchant services through your bank you're actually going to have to micromanage all of those deposits and when all of the payments come in and are sitting in undeposited funds you're going to have to make all of those matches for you so you have to kind of look it up on another screen and do all the matching so by the time you factor in the amount of time you have to spend and the wages that you have to pay the person who's going to do this work then all of a sudden it's not cheaper anymore so it's really something to take into consideration when you use quickbooks payments it takes visa mastercard american express discover and apple pay and google pay as well so if you've already been using it just know that that's something that's actually been added over the last couple years so those are new options for you so if somebody if you send an invoice to somebody who's on a mac and they go to pay it their mac will recognize apple pay and give them that option as a payment method and then there's also ach which is also called e-tax or electronic electronic transfers and that's basically when they send their money from their bank account to your bank account so there's lots of different options for the customer to choose from let's take a look at the fee structure and how much it costs you to use it so the first thing that we need to do to explain the pricing structure is to talk about swiped versus keyed rates and that terminology so a swiped rate is anytime you're actually using the swiper and you're taking the card and you have it in your hand and you're either swiping it through the reader or maybe you have one of the tap to pays so anytime you the customer is in front of you with a card in their hand you're getting a swiped rate and so even if you're on a pc and you have one of those microtex swipers you can even swipe with those as well although quickbooks has its own readers and i'm going to show you those in a little while so swipe basically means card is present and the customer is present key rates refers to any time the card or the customer are not present but there's a lot of different ways that you can take advantage of it when you're taking payments maybe you have the customer on the phone you can type in the credit card number or if you're using the phone app you can actually take a picture of the credit card and it will scan it for the numbers and import the numbers in for you you can also send automated sales receipts and so if you're using the set it and forget it method of taking your payments which i'm going to talk about a little bit later but that also counts as a key rate and so does the pay now button when you send the invoice to the customer so again any of those are times when you're not actually physically managing the card itself when you're just working with the data so those are key rates [Music] so now that we've seen keyed versus swiped now let's take a look at the rate structures and then quickbooks payments if you use the swipe rate it's 2.4 plus 25 cents if it's a keyed so you're invoicing them or you're taking it over the phone any of those it's three point four percent plus twenty five percent each if you're sending the email and they're paying electronically through email it's two point nine percent so you get a little bit of savings that way and if you're using the ach it's a flat rate of one percent but it's only a ten dollar max so if somebody's paying you twenty thousand dollars you're only going to pay ten dollars in fees for it so that's the way the fee structures work now the rates that i just told you about are if you're using what they call pay as you go so there's no minimum monthly fee if you don't use it you don't pay anything you just pay per transaction but if you're higher volume you also have another option and that's to pay a monthly fee and if you pay that monthly fee then your rates go down and so you're paying a little bit more up front but then you save money on the per transaction rates so here on this one we're looking at the retail rates the two columns on the left-hand side and you see pay-as-you-go and monthly fee so like i said pay-as-you-go there's no fee if you use it you'll pay by transaction or you can pay a twenty dollar monthly fee and then your rates go down the swipe rates plummet from two point four percent all the way down to one point six percent so if you're in a retail environment where you have the cards in front of you that's the way to go because you're going to pay much much less in fees for keyed rates then it goes down from 3.4 down to 3.2 if you're doing the bank transfers that's the same those rates don't change and if you're sending the invoices or they're paying by apple pay you get a little bit of savings it goes down from 2.9 down to 2.8 so as you're doing these calculations and you're trying to figure out if it's worth paying the monthly fee or not the break even is roughly at seven thousand dollars in transactions every single month and i don't even look at it as a one-month basis because everybody's business is a little bit seasonal and you have up months and down months so i like to look at the average i like i like to go back about three months and say okay did i hit seven thousand dollars in credit card sales over um this time and if i did that's when you want to go to the monthly fee because especially if you're doing the swipe rates that's where you're going to see your big savings now something else to think about is that if you're working with a bookkeeper or a quickbooks pro advisor pro advisors get discounted rates if your pro advisor or bookkeeper connects you to quickbooks payments you actually get even lower rates than the pay as you go rates so you get a savings you don't have to pay the monthly fee or if you do pay the monthly fee that goes down from like 20 to 16 and then you get savings on all of these percentages as well so that's great incentive to develop a relationship with a bookkeeper who can do the sign ups for you so the important part though is that the bookkeeper signs you up or the pro advisor signs you up instead of you doing the signups yourself so let's take a look at how to set up the quickbooks payments the way that you sign up is inside your quickbooks online you go up to the gear and you choose account and settings and then when you look down the left hand side payments is towards the bottom so you click on payments and then you just follow the instructions or the prompts there it'll have you fill in your company name your company information and it's also going to ask for the personal information for the guarantor on the account usually that's the business owner so you want to make sure that you have the business owner's name address social security number because somebody has to be the guarantor on the account if you're signing up through a bookkeeper you kind of want to do this together and work together on the project so that the bookkeeper can sign you up but you're still putting in your personal information yourself and the bookkeeper isn't the person who's putting it in and so make sure that you have all the information that you need you'll fill in the application and then it will go through to underwriting for your approvals there are some limitations first when you first get approved you have a cap that they're only going to approve you for five thousand dollars a month now there's not a guarantee that you're going to get accepted there are some industries that are at risk maybe your industry has a lot of chargebacks like the travel industry if you are in an industry where people pay you money but then get refunded they may not accept you or there are certain industries that are just considered a little bit more high risk and so not everybody is eligible but it never hurts to apply next question is how fast are you going to get your money the credit cards have a one to two business day turnarounds so if a customer pays you on monday you should see the money by wednesday bank transfers can take a little bit longer from one to five days because first they have to get the approval from the bank then the money comes in here they have to guarantee that they get it and then it shows up in your bank account so it takes a little bit longer but some companies need that money faster for their cash flow so they do give you the option of doing what they call instant deposits and so you can pay an extra one percent fee but then the money shows up in about an hour and so you have it right away now here's a way around that one percent there's a new feature in quickbooks called quickbooks cash and you can look for it in your left hand sidebar it's available to the business owners but the bookkeepers might not see it but what quickbooks cash is is an actual bank account that's connected to the merchant services and so when you take all of your merchant services payments it goes into this internal integrated bank account inside your quickbooks online and then it also integrates with payroll too so you can get paid by the customers it sits in this quickbooks bank account and then you can pay it out through payroll so one of the benefits of quickbooks cash is that these instant transfers are free to you so this is something to take a look at especially if you are need really fast cash flow now one thing to know since i'm giving you as much information as i can about quickbooks payments is that when you first sign up your first transfers are going to take a little bit longer so you know you might see it might take five days for the first one or a week for the very very first one and that's because they're establishing your credit and they're establishing your account they need to make sure that it's not fraudulent so this is for your protection to make sure that somebody's not opening up a quickbooks payments account in your name that's not you so the first time they have to do they do some due diligence on the back end to make sure it's really you getting the money so the very first time expect it to take longer don't get mad just know that that's what they're doing and it's for your safety and security and then after that it will just speed up and you'll get your money really quickly now let's talk about the swipers quickbooks payments has two different kinds of swipers one's a little handheld gadget that you can just put in your pocket and carry it with you and the other one is a desk model that's good for retail or places where you have a lot of in-person customers they both cost money the standard reader is nineteen dollars and uh it's a it's bluetooth so you connect it to your phone or your ipad and it has a chip reader inside it so it's a pci compliant and then it also the new ones also have a tap to pay so you don't even have to slide the card you can just hold it to the card there's also a contactless reader where it sits on a cradle on your desk and not only can you still do the credit cards themselves but you can also pick up your phone and tap to pay just like you see in stores these days so you have that full modern technology you can order your swipers by going to the go payment app i'm going to talk about the go payment app in a minute but it's an app that you install on your phone or your ipad and so when you go into it there's a spot there that you can order your swipers one thing with the swipers is that make sure you actually remember to charge it there's nothing worse than having one in your pocket getting on site and it ran out of juice so make sure that you do keep everything plugged in when you're not using it so the swipers themselves give you the ability to take payments in lots of different ways if there's already an invoice inside your quickbooks you can use the swiper to take the payment against that invoice or you can make a sales receipt right on the fly right when you're working with a customer and take the payment that way then what you'll do is when you're using the app you'll say okay they're paying by credit card and then the customer will sign it with their finger and then you can even email them the receipt you can print it you can email it and then they have their copy of the receipt super easy and so like i said when you're using the swiper this is how you're going to get the lowest rates and pay the least fees now i mentioned the apps a couple different times there's actually two different apps that you can use with quickbooks payments the first one is the quickbooks online app itself i don't know if you knew that but there is a mobile app for qbo and so you can download it from either google play or your app store and you log in just like you would if you were sitting down in front of chrome and it's your full experience of quickbooks online so it has all the information that you would have if you were logging into the computer and it gives you that full power in the palm of your hand where you can make a full invoice a full sales receipt you can have classes custom fields everything that you would have in your normal experience just mobile with you but sometimes you don't need that much detail or maybe you have employees out in the field and you don't want them to have that much detail so that's where the go payment app comes into play it's a streamlined app and it all it does is take payments and make sales receipts you don't even have to enter in a customer name you can just say walk-in customer or a trade show customer or flea market customer and you can use your products and services it does integrate so that you can say exactly what it is that they're buying but you don't have to if you need speed you can just say okay they're paying me 10 and type in 10 and swipe the payment and go so it really depends on your needs you've got the just streamlined quick and dirty i'm taking money or you can gather the full details of the sale so you can have both apps and just log into the one that you need [Music] now you might be saying to yourself yeah but if i've got employees doing that i don't want them to have access to my financial data that's where the go payment app in particular comes in because it is streamlined you're not giving them access to any of your sensitive data in fact once you've signed up for quickbooks payments if you go up to the gear and go to manage users where you create new user accounts you now have a new option here that for payments only you can make payments logins for your employees and then that way when they pull up either the go payment app or the qbo app but usually you would use go payment in this situation they'll log in and then they can take the payments and then that way you have it in your audit lock which employee took the payments so it's really nice that you get all the benefits of a user account but it's completely streamlined locked out the only thing they can do is create sales receipts and take invoice payments now let's talk about the integration with your invoices so let's talk about the review and pay button and for me this is where all the magic comes in so when you make an invoice for your customer you can email it to them and you can have it just give them a link or if you wanted you can show all the details of the invoice right in the email itself that part's completely up to you and then they'll have a button that says review and pay they'll click that button and it takes them into a web page with an interface on it and there they can download a pdf if they need it for their records they can pay in full they can even make partial payments as well totally up to them now here's something new if uh you've already been using the invoicing here's something that's changed a new benefit for you your customers can now also schedule future dated payments so they can go in now and say okay i don't want to pay it now i want you to actually pay it in two weeks and that'll be completely automated they have the ability to save their payment information so that every time they pay you or actually pay anybody using qb payments they don't have to put in their credit card information or ach information every single time they have the option of storing it if they want to and the other new feature is that they can also also authorize future automatic payments so what you can do now is you can send to them an invoice and they can market that the next time alicia sends me an invoice you can go ahead and pay it using this and using my payment information and then it becomes completely streamlined here's what it looks like from the customer's experience when they click that review and pay it'll pop this up where it has the dollar amount at the top they can edit that so they can pay it in full or they can change it and make it smaller they can choose if they're going to pay you by credit card ach apple pay google pay and then the beautiful part is that you don't have to wait for checks in the mail and so here's the biggest benefit of it is that it completely streamlines that process where instead of sending an invoice which they now have to print out and send to accounts payable and then they'll wait till their check run at the end of the month they'll just pay it right away and as i mentioned at the beginning the other magic about this is that as soon as the customer fills in this form it's going to go back into your quickbooks and create the payment for you put it in undeposited funds and then when the deposits come in and actually hit the bank it will do the batching and matching for you so it's going to completely speed up and reduce your accounts receivable now let's talk about the magic money the recurring payments if you invoice your customers on a regular basis whether it's monthly quarterly annually but let's just say monthly and they pay the same amount every single month there's a way that you can set it and forget it that you can make a sales receipt and then memorize it and have it run you know the first of the month and it'll have the payment information connected to it and so it'll even email it so basically the first of the month hits it sees the automated sales receipt creates the sales receipt charges the payment sends a receipt to the customer puts it in undeposited funds and then it'll match when it hits your bank and so you literally do nothing like you do nothing and the money just shows up in your bank account and so it's just that's why i call it magic money because it does everything for me including letting the customer know that they paid you you do need to get authorization for this and so that's where the authorization forms come in that the first time that you set up a client with an automated sales receipt it'll actually pop up these authorization forms or you can do the authorizations through the portal as well and so you want to make sure that the customer is aware that you're going to be charging them just to make sure that you're in compliance so definitely protect yourself as well so that people aren't going oh these charges are unauthorized but once you've got your approvals it's just heaven you know i've had customers on my automated sales receipts since 2017 or so and it's just it rolls it's really just so easy now let's talk about what happens with refunds [Music] if you do have to give your customer a refund because you know every so often you have to if you're they paid by credit card you have up to 60 days in order to run the refund you can only refund up to the amount of their original charge so if they paid 100 you can refund up to 100 within 60 days if they had if you're refunding them more than that amount you might have to do an individual transaction so for example if a customer paid you a hundred dollars three times you can't refund three hundred dollars but you can refund a hundred dollars three times now one of the limitations is that you can't do a refund by ach but that's not just a limitation of quickbooks payments that's just where our industry is at it's just can't be done and so if somebody did pay you by ach you do have to cut them a check or use an alternative payment method to refund them and that's just you know the technology isn't there yet for anybody to do that now that you've seen how it all works let's take a look at where you can see and track all of this painted information the first place is the deposits screen and so you're going to find this by in your in your customer center either by going in your left navigation bar to sales or maybe it says invoices depending on the version that you have but you click on sales or invoices and then look for deposits this gives you a screen that shows every single payment run through quickbooks payments it will show you where which are getting batched together so it'll say you know six transactions and you click on it and it will show you all six of them for that day it will show you the date that it's expected to hit your bank and uh also in the future so if it's not going to show up for three days it shows you that as well so you have absolutely complete transparency for the status of every single payment or transaction and so if you're wondering like oh what was this thousand dollar payment for you can come into here click on that thousand dollar payment and say oh that was these three transactions so you know exactly who paid what and how it all got combined you also have access to monthly statements you get the monthly statements by going up to the gear and into account and settings and into payments the same place where you signed up in the first place and then you'll see an option there for viewing your statements and then you can pick which month you want and click view statements you're going to be able to see every single transaction you're going to be able to see the number of transactions how they were classified so you'll be able to see your volume and your fees and what i really like doing is looking at the aggregate costs so that you can really see the true cost because you know we think about it in terms of the percentages but there's also the per transaction fees so you want to know what the whole big aggregate percentage is that's a place that you can look especially if you're trying to decide and compare it to other merchant services processors that's where you can really compare apples to apples and not apples to oranges now for those of you who are eagle eyes and hyper analyzers you might be looking at this saying well wait that says the aggregate free percentage is four percent what that tells me is that these are very very tiny transactions like people are charging a dollar two dollars three dollars because 25 cents a transaction is a very large proportion of a dollar it's 25 so it all kind of averages out but if your payments are larger that 25 cents is nothing so that's how you can you know one of the things to think about when you're doing all the math now in addition to the built-in tools inside your quickbooks online there is a separate merchant services portal and you can get there by going to merchantcenter.into and if you're logged into your qbi when you open it up in another tab it'll just log you right in so this is where you're seeing the behind the scenes for what's happening inside qbo with all of the payments so here you can also see your daily deposit backed batches you can add additional users to your account you can turn on and off american express you can also order swipers here as well it's another place that you can go and it's also another place where you can download your statements so there's additional tools here in in addition to what's in the interface itself i used to go in here all the time but honestly most of the features that used to be only here they've wrapped in like being able to see your deposits so it you have this resource but it's actually pretty rare you'll ever need to go to it so let's take a look at all the things that you should do all of your action items based on the information that i've given you today so the first thing is do that calculation should you be pay as you go or should you ask about the monthly fee talk to your bookkeeper to get signed up so that you can get the rock bottom rates or if you don't have anybody you're welcome to sign up yourself and again you do that through the gear and account and settings and then go to the payments section login to your google play or your app store and download the go payment app and if you haven't already download the quickbooks online app and check that one out too log into those apps order your swipers whether it's the handheld swiper or the desk model then get out there find somebody to charge and try out the swiper yourself because it's kind of fun anybody who you have on recurring receipts go ahead and make all of their sales receipts and save them as recurring and get everybody up and running on this new system and then head over to that deposit screen and look at your batch settlements and watch that magic money roll in so in conclusion my name is alicia katz pollock my company is royalwise solutions and you can find us at royalwise.com thank you all for coming enjoy the rest of the conference and i will see you in class you

Channel: Intuit QuickBooks

Views: 19,713

Keywords: Intuit, QuickBooks, QB, QBO, QuickBooks Online, Tax season, Taxes, quickbooks tax, quickbooks finance, finance, small business, entrepreneur, QuickBooks Connect, QBC

Id: Hxpw3q4Ee3M

Length: 30min 10sec (1810 seconds)

Published: Thu Nov 04 2021