QuickBooks Credit Card Processing: Reviewing Intuit’s Merchant Services
Today, we are reviewing Intuit’s QuickBooks credit card processing services. Please do not confuse this review with Intuit’s very popular QuickBooks accounting software.
And, maybe this confusion and lack of differentiation is the perfect place to start this post. Almost everyone has some understanding of what Intuit’s popular QuickBooks accounting software is and what it does.
That being said, Intuit has banked on its brand recognition and loyal customer base to promote its merchant services. QuickBooks merchant services and its accounting software integrate seamlessly, but this integration is basically the only thing its credit card processing has going for it.
If you look a little deeper, you’ll find that Intuit is overcharging merchants for its credit card processing because the service is easy to use (if you’re already on their accounting platform).
It’s convenient, for sure—but at what cost?
Let’s break it down below.
Intuit Credit Card Processing: The Basics
First things first. If you want to use QuickBooks’ merchant services, you must be a QuickBooks Online user.
QuickBooks Online currently offers two plans: The Simple Start plan, which costs $30 per month, and the Essentials plan, which costs $27.50 per month.
From there, you’ll be able to add payment processing capabilities to your account.
QuickBooks Credit Card Processing Fees
Now let’s break down those payment processing costs. As of the time of writing this, QuickBooks credit card processing fees are outlined as follows:
|Bank Transfer (ACH)||1% (max $10)|
|Card Reader||2.4% + 25¢|
|Card – Invoiced||2.9% + 25¢|
|Card – Keyed||3.4% + 25¢|
Intuit Credit Card Processing: An Honest Review
Pro: Seamless integration with QuickBooks accounting software
Merchants that use QuickBooks merchant services have a couple of advantages. As mentioned earlier, Intuit’s accounting software and payment processing are tightly integrated, so it’s easy to accept credit cards, generate payment reports, and reconcile your accounts.
If you’re already using QuickBooks to generate invoices and track your business finances, then adding Intuit’s merchant services makes sense because it creates a seamless experience for you and your customers.
Pro: Easy to read merchant statements
Intuit uses a flat rate payment structure, which blends the interchange rate with the processor’s markup. This makes your merchant statements easier to understand. Rather than having to calculate the interchange + markup, you end up with one flat rate.
Con: Higher credit card processing fees
But the advantages end there. When compared with other payment processors, Intuit merchant services are far from being the most cost-effective option. The minimum per-transaction rate is 2.4% and that only applies to swiped cards. Many businesses have to key in card payments from time to time, so that rate is bound to go up.
Plus, if you key in transactions regularly or if you process card-not-present transactions (CNP), then your rate goes up to 3.5%.
Con: Slow deposit time
QuickBooks deposit schedule can be as long as 5 business days, which is certainly not ideal if you’re a small business that needs access to funds.
That said, depending on your plan and when you signed up, you may qualify for next-day deposits. (Though this is subject to certain eligibility requirements and you may need to contact them to find out.)
Con: Only works with QuickBooks Online
Purchasing your accounting software and merchant services from one company—in this case, QuickBooks / Intuit—can be a double-edged sword. While it certainly makes payments easier for QuickBooks users, there isn’t a lot of flexibility in using other financial apps.
A paid subscription to QuickBooks Online is required to avail of the company’s payment services. This makes it difficult to switch providers if you’re not happy with QuickBooks’ accounting or invoicing software. If you want to switch to a more cost-effective accounting solution, you’ll need to cancel your QuickBooks account—which invariably includes merchant services.
QuickBooks Merchant Services Support
Intuit offers a knowledge base, along with email support. Phone support is available Monday to Friday from 5:00 am to 7:00 pm Pacific time and Saturday from 6:00 am to 4:00 pm. Be aware, though, that many customers have reported long hold times and insufficient responses.
Intuit’s customer support hours go beyond the traditional 8 to 5 window, which is good. But note that there are other merchant service providers (such as Payment Depot) that offer 24/7 customer service.
Hypothetical Retailer Example
We’ve talked about QuickBooks credit card processing fees and the pros and cons of using Intuit to power your payments. Now, to give you a better of what’s Intuit’s merchant services actually look like, here’s a hypothetical example of a retailer on QuickBooks Online that’s doing $30,000 sales volume per month, with an average transaction value of $100:
|160 swiped $100 transactions @ 2.4%||$384|
|140 keyed in $100 transactions @ 3.4%||$476|
|300 transactions x $.0.25||$75|
|PCI Fee (monthly)||$9.95|
Now, let’s compare that to the payment processing fees of Payment Depot, which doesn’t charge a percentage of your sales. Those transactions would be charged as follows:
|300 transactions @ $0.10 flat fee||$30|
|$30,000 @ 1.8% [average interchange rate]||$540|
|Payment Depot monthly membership fee||$79|
|PCI Fee (monthly)||$0|
Looking at the processing fees alone, we can see that Intuit’s merchant services fees cost $11,939.4 a year. Payment Depot’s fees, on the other hand, amount to $7,788 a year. What’s more, Payment Depot’s transaction fees go down as your credit card volume increases, allowing merchants to save even more.
QuickBooks/Intuit Merchant Reviews
Merchants using QuickBooks and Intuit’s merchant services are happy with the seamless integration of the software and user-friendly interface.
Here are some notable reviews.
“Having a one-stop shop that integrates all of the tools that I need into one platform breeds opportunity,” writes Evan M, a small business owner, on G2.
Chris M, another business owner, says that one thing he likes about QuickBooks Payments is the fact that “Quickbooks has made a seamless integration with payments into all of their software offerings.”
That said, some merchants have brought up difficulties in issuing refunds.
“I dislike the way you can only credit back the full amount of a transaction. If you have to do a partial refund, you must refund the full amount back and then charge the card the new amount,” writes Karenmarie B.
There were also complaints about customer support. “The only thing I disliked was the customer service aspect. I had 2 issues that were quickly resolved but when I contacted tech support, instead of just telling me the simple 2 steps, I was sent a 9 page PDF,” writes another reviewer.
QuickBooks credit card processing has a couple of things going for it. For one, its accounting software and merchant services are tightly integrated and easy to use. And since Intuit uses a flat rate pricing structure, the fees are simple to understand.
But its credit card processing costs far outweigh these benefits. Businesses can find more cost-effective merchant services that are just as easy to use and understand.
Our advice? If you’re happy with QuickBooks accounting software, you should, by all means, stick with it. But do yourself a favor and look for a better payment processor for your biz.
An Alternative to Intuit QuickBooks Merchant Services
Consider Payment Depot. Unlike most merchant services providers, Payment Depot uses a membership-based pricing model which means we don’t charge a markup on top of your sales. Instead, merchants pay monthly membership dues to get access to wholesale payment processing costs. Think of Payment Depot as the Costco of credit card processing.
Get in touch with us to learn more. And if you’re shopping around for a new merchant services provider, you can send us your proposal or your existing merchant statement and we can give you an unbiased analysis for free.