Payment Depot vs QuickBooks Payments: Which Simplifies SMB Payment Processing Better?
Cash is no longer king. Post-pandemic, the global shift towards cashless transactions has accelerated. Digital payments in developing economies have surged from 35% in 2014 to 57% in 2021. The percentage is even higher in high-income countries, with nearly universal adoption at 95%.
From bill payments to everyday purchases, customers now expect cashless payment options. Small business owners must, therefore, learn to keep up with the trend to stay competitive and relevant in today’s market.
SMB payment solutions such as Payment Depot and QuickBooks Payments can help—but how and to what extent? Let’s dive into the specifics of these two payment service providers and see how they stack up against each other.
Payment Depot vs QuickBooks Payments: An Overview
It’s easy to get lost in a sea of technical jargon when looking for a payment solution (or any business solution, for that matter). Two popular choices are Payment Depot and QuickBooks Payments. If you can’t decide between the two, here’s a breakdown of their features and benefits.
Know your business type and industry, set a budget, and refer to this guide to decide what’s best for you.
Payment Depot goes beyond payment processing and offers an impressive hardware selection with Dejavoo, Poynt, Clover, and SwipeSimple. Thus, you have the flexibility to use your preferred virtual terminal, card reader, or POS system.
Its user-friendly interface not only allows you to manage credit card processing fees and monitor sales but also features customizable pages where you can brand your payment portal for a more personalized, seamless checkout experience.
In contrast, QuickBooks Payments provides direct integration with Intuit’s accounting software QuickBooks Online and QuickBooks Desktop. It lets you process major debit and credit card transactions and automatically sync them with your accounting records.
While there are only a few Intuit-approved hardware options, QuickBooks makes up for it with a convenient mobile POS solution. Simply download the GoPayment app and log in to your QuickBooks account.
QuickBooks Payments can be very handy for growing businesses that heavily rely on QuickBooks accounting software and retail hardware. But in terms of payment flexibility and customization, Payment Depot provides a more SMB-friendly solution.
SMBs require a seamless flow between software tools to manage their operations effectively. Luckily, both Payment Depot and QuickBooks Payments offer a wide variety of integrations. This makes them easy to integrate with tools you already use to run your business operations.
Payment Depot operates with most point-of-sale (POS) systems, eCommerce platforms, and shopping carts. If you already use any of these tools, you can add the gateway to your existing workflow without switching your system.
Meanwhile, QuickBooks Payments integrates with QuickBooks accounting software. You can perform payment processing, bookkeeping, and tax calculation in one place. It also works with popular eCommerce platforms like BigCommerce and Shopify.
Both providers have flexible integrations to meet your needs. The answer boils down to your existing workflows and eCommerce platform.
63% of customers are more likely to shop with you if you offer their preferred payment options. You don’t want to lose them to your competitors, so make sure your payment solution is capable of handling a wide range of payment methods.
Payment Depot accepts all major credit cards, debit cards, ACH payments, and mobile payment methods. If you process payments in person, no problem. You can use Payment Depot’s virtual terminal, VISA card reader, and mobile app included in your subscription.
QuickBooks Payments also supports credit cards, debit cards, ACH bank transfers, and eCheck payments. It also integrates with third-party payment services like PayPal, Stripe, and Apple Pay, giving customers a seamless shopping experience.
Both QuickBooks Payments and Payment Depot offer a wide range of payment options. However, the latter’s free card reader and smart terminal compatibility make it an ideal choice for those with physical stores.
Review your budget. How much you can afford to spend on processing fees and subscription costs? Your payment solution must align with your financial goals.
Payment Depot offers membership-based pricing plans that start at a $79 monthly fee (exclusive of cents per transaction). This subscription allows you to process up to $250,000 per year. There are no markups, hidden fees, long-term contracts, or cancellation fees. If your annual transaction volumes are higher, you can request a custom quote that better suits your business needs.
QuickBooks Payments, on the other hand, charges processing fees of:
- 2.9% + $0.25 for every invoiced transaction
- 2.4% + $0.25 for every swiped transaction
- 3.4% + $0.25 for every keyed transaction
- 1% for every ACH bank payment (up to a maximum of $10 per transaction)
Payment Depot’s membership-based pricing turns out to be more cost-effective than QuickBooks Payments in the long run, especially if you process numerous small-ticket transactions.
A responsive and helpful support team can save you time and headaches when dealing with technical issues. It’s reassuring to know there’s someone on the other end of the line, ready to help when needed. To that end, Payment Depot offers 24/7 customer support via phone, email, and live chat.
QuickBooks Payments also provides multiple support channels like phone, email, and live chat. But since it’s a QuickBooks solution, you may have to queue with other QuickBooks users and schedule phone support. Or, you can ask (and answer) questions in the extensive FAQs and community forums.
For anyone using QuickBooks Payments or Payment Depot for the first time, the latter’s 24/7 customer support is a huge perk.
Payment Depot and QuickBooks Payments have their fair share of positive feedback when it comes to customer ratings and feedback. Here are some highlights.
- GetApp. Payment Depot has received 4.7 stars from 57 users, primarily for its ease of use and outstanding customer support. QuickBooks Payments, on the other hand, has 4.3 stars from 64 reviews and is well-liked for its QuickBooks integration.
- Trustpilot. Payment Depot has a 4-star rating based on 1,250+ reviews, with customers praising its transparent pricing and timely support. There’s no Trustpilot review page for QuickBooks Payments, but Intuit QuickBooks has a 4.6 rating from 11,675 users. That’s a mixture of reviews for various QuickBooks products and services.
Overall, Payment Depot has a better reputation among users for its user-friendly interface, transparent pricing, and customer support.
Why Use Payment Depot or QuickBooks Payments
Payment solutions can automate various payment processes while reducing errors and saving you time and money. Here’s how finding the right payment solution—between Payment Depot or Quickbook Payments—can benefit your business.
1. Shopping convenience
Only 13% of customers use cash for most purchases. That means more than four-fifths prefer shopping via credit cards, debit cards, and online payments.
If you accept cash payments, you may lose potential customers who prefer other options. 42% of shoppers abandon the purchase when their preferred payment method isn’t available. That’s a huge profit slipping through the cracks if you take no action.
Payment solutions like Payment Depot and QuickBooks Payments allow customers to make hassle-free payments, thus increasing sales and encouraging repeat business.
2. Improved cash flow
82% of small businesses fail due to a lack of cash. Some common factors include slow-paying customers, uncontrolled expenses, and processing delays. Businesses have limited resources in such cases, leaving them with no financial cushion to fall back on in difficult times.
With a payment processing system, such as QuickBooks Payments or Payment Depot, you can receive payments from customers in real time.
No need to wait for checks to clear or deposit cash into your account. The funds will automatically reflect in your account. Faster and more efficient, this process can help you keep track of sales and oversee your cash flow.
3. Increased security
Stolen or compromised credentials cost an average of $4.50 million, while physical security breaches can cost up to $3.96 million. And that doesn’t even account for reputational damage and a loss of customer trust.
Both Payment Depot and QuickBooks Payments use encryption technology to process credit card payments. This protects customers’ credit card accounts from chargebacks and malicious activities.
Digital payment solutions are generally more secure than cash payments. They employ industry-standard security measures to protect your data and prevent fraud. Thus, you’re less likely to lose money due to theft, fraud, or accident.
4. Streamlined bookkeeping
Keeping tabs on your sales and expenses can be stressful, especially if you’re juggling multiple payment methods. Even a minor oversight can have significant consequences on tax season.
Both Payment Depot and QuickBooks Payment platforms have built-in features that allow you to review sales history, track transactions, and generate financial reports. This can help you stay organized and simplify your bookkeeping processes for sales tax purposes.
Not only can you avoid costly mistakes like miscalculating taxes or overpaying expenses, but you’ll also have accurate and timely financial information to make data-driven decisions that will boost your bottom line.
5. Increased efficiency
Many SMBs face manual-sales-related problems, such as giving customers excess change or spending time counting cash and reconciling it with sales daily. Opting for a payment solution doesn’t 100% eliminate inefficiencies, but it streamlines these day-to-day operations.
As mentioned earlier, processors like Payment Depot offer POS system integration. It generates sales receipts for every transaction, so you won’t have to keep updating and tallying your chart of accounts.
This all-in-one solution tracks all cash and credit sales transactions, including the date, time, product, quantity, and price. It performs everything from manual data entry to reconciliation, freeing up more valuable time for your business.
Weighing the Pros and Cons
Let’s look at the big picture by summarizing each solution’s advantages and drawbacks. This will help tailor your decision to your company’s budget, workflow, and payment processing requirements.
- Flexible pricing plans with no mark-ups or hidden charges
- Virtual terminals, card readers, POS systems, eCommerce platforms, and shopping carts integration
- 24/7 phone, email, and live chat support
- Available only to merchants in the US right now
- Seamless integration with QuickBooks accounting software
- Has a mobile app for in-person sales
- No monthly fee for a QuickBooks checking account (if you meet specific criteria)
- Limited eCommerce platform integration
- Higher transaction fees for ACH, swiped, invoiced, or keyed-in payments
- Shared support with other QuickBooks users; scheduled phone CS only
Take these factors into account to reach a well-rounded decision. This will not only meet your current needs, but it will also help you align with your customers’ needs.
Choose the Most SMB-Friendly Payment Processing Solution
In summary, Payment Depot stands out for its transparent pricing, support, and customizable plans while QuickBooks Payments offers a smooth integration with the QuickBooks software.
Still can’t decide? Go back to the basics. Ask your customers about their preferred payment methods. Review your transaction volumes, invoice payments, and current systems.
If you’ve been running your accounting system for years in QuickBooks, you may profit from QuickBooks Payments. Otherwise, Payment Depot is the most cost-effective, long-term payment solution for your small business. Contact us today to learn how you can save more on credit card processing fees with Payment Depot.