How to Receive an ACH Payment in QuickBooks Online: A Comprehensive Guide

QuickBooks Online is a powerful and user-friendly accounting software that offers various payment options to its users. One of the preferred methods for businesses to receive payments is through Automated Clearing House (ACH) transfers. In this article, we'll guide you through the process of enabling and receiving ACH payments in QuickBooks Online.

Understanding ACH Payments

Before we dive into the steps, it's important to understand what ACH payments are. ACH payments are electronic transactions used to transfer funds between banks. Unlike credit or debit card payments, ACH transfers are direct and secure, making them a popular choice for businesses that prefer to avoid fees associated with credit card payments.

Including an ACH Payment Option in QuickBooks Online

To allow your customers to pay via ACH in QuickBooks Online, you need to have the QuickBooks Payments Account. This account is a premium service that provides the capability to securely request bill payments directly from your customers.

Step 1: Activate QuickBooks Payments Account

First, you need to activate the QuickBooks Payments Account in your QuickBooks Online profile. This process is straightforward:

Log in to your QuickBooks Online account. Go to the 'Settings' menu. Select 'Pay Bills' from the list of options. Click on 'Payments' and then select 'Get Started' under QuickBooks Payments. Follow the on-screen instructions to activate your account. This usually involves providing your bank account information and verifying your identity.

Step 2: Configure ACH Payment Options for Your Invoices

Once your QuickBooks Payments Account is activated, you can enable ACH payments in your invoices:

Go to the 'Customer Center' and select a customer. Click on 'Invoices' and create or edit a new invoice. Scroll down to the 'Payment Options' section. Select 'ACH Direct Debit' and add the bank account details of your customer. Ensure that the ACH option is selected and displayed on your invoice.

Step 3: Email the Customer an Invoice with ACH Payment Option

With ACH as a payment option on your invoice, you can now email your customer the invoice with a 'Pay Now' button directly linked to the ACH payment method:

Go to the 'Invoices' section and select the invoice with the ACH option. Click on 'Actions' and choose 'Email Receipt.' Alternatively, you can print the invoice. Customize the email message if needed and include the Pay Now button. Click 'Send' to deliver the invoice to your customer.

Benefits of Using ACH Payments

There are several advantages to using ACH payments with QuickBooks Online:

Saves Time and Effort: ACH payments reduce the need for manual reconciliations and follow-ups, making your payment process more efficient. Lower Fees: Compared to credit or debit card payments, ACH payments typically incur lower fees, saving your business money. Improved Cash Flow: ACH payments can settle faster than traditional checks, improving cash flow for your business. Enhanced Security: ACH payments are secure and often protected by additional layers of authentication and verification.

Conclusion

QuickBooks Online provides a robust and user-friendly platform for businesses to manage their finances and receive payments. By enabling ACH payments in your QuickBooks Payments Account, you can offer your customers a convenient and secure method to pay their bills. This guide has outlined the steps to set up and use ACH payments, ensuring a smooth and efficient payment process for your business.

Frequently Asked Questions

Can multiple payment methods be included in a single invoice?

Yes, you can include multiple payment methods in a single invoice, including ACH payments, credit cards, and more. This gives your customers flexibility in how they prefer to pay.

Are there monthly fees for using QuickBooks Payments Account?

QuickBooks Payments Account is a paid service. You may be charged a transaction fee for each payment received through this service. It's important to review the terms and conditions to understand the pricing structure.

Can I exclude some customers from using ACH payments?

Yes, you can choose which customers receive invoices with ACH payment options. This can be done on a per-customer basis in the invoice settings.