How do I set up QuickBooks to where when a customer wants to Pay though the app I dont get charged the interest fee?

Hi @sjimprovement,

That's a really great question, and it's something a lot of business owners think about – those pesky payment processing fees! Unfortunately, the way QuickBooks Payments (and most online payment processors) works is that they do charge a fee for each transaction when a customer pays you through the app or online. This fee helps cover the costs associated with securely processing the payment, like the network fees charged by the credit card companies and the technology that makes it all happen.

So, to answer your question directly, there isn't a setting within QuickBooks Payments that will completely eliminate the processing fee when a customer pays through the app. Those fees are a standard part of using the service.

However, let's brainstorm some things you might be thinking about or some potential workarounds and considerations:

• Are you thinking about a specific type of payment? Sometimes, the fees can vary slightly depending on whether it's a credit card, debit card, or a bank transfer (ACH). ACH transfers often have lower fees than credit card payments. You might want to encourage customers to use that option if it's available and has a lower cost for you.

• Could you offer an incentive for different payment methods? While you can't directly avoid the fee within the app, you could consider offering a small discount to customers who pay using a method that doesn't incur these fees for you, like a check or a direct bank transfer (outside of the app). You'd just need to make sure the discount makes sense for your business.

• Have you looked into your current QuickBooks Payments fee structure? Sometimes, depending on your business volume, you might be eligible for different rates. It could be worth reaching out to QuickBooks Payments support to see if there are any options to potentially lower your processing fees. They can give you the most accurate information about your specific account.

• Are you potentially thinking about passing the fee onto the customer? This is a bit of a tricky area. In some places and with certain payment types, you might be able to add a surcharge to cover the processing fee. However, there are specific rules and regulations around this, and it's really important to check with QuickBooks Payments and your local laws to make sure you're doing it correctly and legally. You definitely don't want to run into any issues with that!

Here's my personalized suggestion:

I'd recommend first checking your current QuickBooks Payments fee structure. Log into your QuickBooks account and look for the "Payments" or "Merchant Services" section. You should be able to see the fees you're currently being charged. If you're processing a decent amount of payments, it might be worth contacting QuickBooks Payments support directly (you can usually find their contact info within your QuickBooks account) and asking if there are any options for a lower rate.

While you likely can't eliminate the fee entirely within the app, understanding your current rates and exploring alternative payment incentives or potentially negotiating better rates could help minimize the impact of those processing costs.

Hope this helps clarify things a bit! Let me know if you have any other questions.

Like you, I aim to charge customers an interest fee on their invoice payments, @sjimprovement. I am here to provide detailed information and assist you in reaching this objective.

Thank you for providing detailed information about the interest fee on customer invoice payments, @OliverNoah725. I will also offer some additional guidance and propose another solution.

Currently, QuickBooks charges business owners an interest fee for payments received from customers through QuickBooks Payments. To recoup these payments, you can create a service item for the interest fee and manually include it in your invoices.

Here's how to create:
 

1. In the Gear icon, select Product and services.
2. Click New and choose Service.
3. You can label it as an Interest fee and fill in the necessary details.
4. After that, tick Save and close.

If a customer overpays, you can apply the credit to an invoice, refund the customer, or record the overpayment as a tip. For more details, see this article: Handle a customer credit or overpayment in QuickBooks Online.

Managing your financial records can sometimes be complex, but our QuickBooks Live Expert Assisted team is here to support you. They will help you pinpoint essential dashboards and provide insights to improve your comprehension and effectiveness in managing your business.

Let's keep the conversation open for future inquiries about managing your customer payments. Our QuickBooks Community team is always ready to offer the help you need.