The full form of ACH payments is Automatic clearing house payments. It is the financial network that facilitates electronic money transfer from one bank account to another without paper checks, credit card networks, wire transfer or cash, etc. They are faster than paper checks and more secure and reliable as well.
ACH payments generally take 1-5 days to process. For setting up the ACH payments and paying your vendors, contractors through ACH via bank transfer, you need to follow the below process.
Steps for Setting up ACH Payments in QuickBooks
For Recurring ACH Payments in QuickBooks: Set up, Manage, Stop
💠 Step 2. In the next step, you need to click on settings (gear icon) > Accounts and settings > product and services.
💠 Step 3. Now you will have to click on connect or Link merchant service in the existing account section.
💠 Step 4. In the next screen, you need to choose the QuickBooks payment account that you wish to connect to and then click on connect.
💠 Step 5. After the above step, you need to review and verify the account info to ensure correctness, and then finally if everything looks fine click on connect.
Once the connection process is finished, you need to sign out and again sign into QuickBooks Online. Your current user id would be replaced with the QuickBooks online user id.
Steps for Turning on Online Payments and Processing Invoices
💠 Step 1. First of all, you need to click on settings (gear icon) > Accounts and settings > sales.
💠 Step 2. In this step, click on online delivery and choose online invoice under the Additional email options for invoices drop-down.
💠 Step 3. Now click on save.
For accepting the customer payments in the QuickBooks, you need to follow the below steps:
💠 Step 1. Select the transaction and enter customer bank account information.
💠 Step 2. You need to get the authorization form from the customer.
💠 Step 3. Lastly, you need to process the payment.
ACH Payment Fees
💠 For QuickBooks Online, it is 1% of the ACH payment amount (maximum is $10) plus 25 cents per transaction charge for both the payment plans i.e. $0/month as well as $20/month payment plan.
💠 For QuickBooks desktop, it is $3.00 for every ACH plus 30 cents charge of each transaction for both the payment plans i.e. $0/month as well $20/month payment plan.
But you should also confirm with your financial institution to check if they charge any extra charges for ACH payments.
In case you need any further information on any point, you can dial a toll-free number and our QB technical helpdesk will help you.