I recently converted a QuickBooks desktop client to QuickBooks online. The client historically processed credit card transactions using Moneris. After conversion we set-up the QuickBooks credit card payment feature; with an introductory offer of 2.5% + $0.25 per transaction was rather competitive. I noted that another credit card processor (Stripe) is offering 2.9% + $0.30 per transaction.
Finding out the credit card discount rate from many of the merchant providers is hard to determine, as the fee you are actually paying is dependant on everything from how you process the transaction (keyed or swiped), to the number of bells and whistles the customer has on that particular credit card. I like these new processors offering this straight forward pricing – easy to understand as well as anticipate costs for budgeting purposes.
In an effort to justify clients using the QuickBooks online processing feature, I analyzed a companies’ credit card transactions from October through December 2015. This particular company processed $31,812 in 47 transactions. This company was using Moneris and had paid $914 including all associated fees. Had this company used Stripe their costs would have been $937; and using QuickBooks online payment feature directly through their online platform, it would have cost $807, a significant savings.
Now it should be noted that many clients also pay for deposits made to their bank accounts, as such you have to understand their banking package. This company pays a flat fee per month and as such there is no additional costs to deposit these transactions; however, they could be charged for a fee transaction as QuickBooks discount may show separately in their bank.
QuickBooks accepts Visa, MasterCard, and Discover. Moneris and Stripe accept Visa, MasterCard and American Express.
I can now confidently recommend clients use the QuickBooks payment solution knowing the rate is competitive, the deposits show up within a few days and because its directly through QuickBooks, the information is automated, secure and backed-up in the cloud.