11 May What Every IT Firm Ought to Know About QuickBooks Payments
If you are a QuickBooks user, this is for you.
Starting May 31st, QuickBooks is discontinuing their Intuit PaymentNetwork (IPN) payment option.
That’s right. If you run your ACH or credit card payments through QB, then you could be affected.
QuickBooks Pro, Enterprise, and Premier have removed the Integration of the Intuit PaymentNetwork with invoices.
Since they have discontinued their PaymentNetwork options, in order to continue accepting electronic payments and have them integrated with your invoices, you would need to move to Quickbooks Online and use their “eInvoicing” feature.
If you have been using payments within Quickbooks, but not using their full IPN payment solution, your processing account will be automatically converted into what will now be known as a “Quickbooks Payments” account
What does this mean for your IT business?
If you have been using a payment account in QuickBooks, then your account should automatically be converted to a QuickBook Payments account.
Unfortunately, QuickBooks will not be able to convert existing IPN accounts to the new QuickBooks Payments account type. This means you would be require to setup a Quickbooks Payments account from scratch, which will not integrate directly to your invoicing, or go back to manually processing, sending, and reconciling invoices. You will also need to begin manually reconciling deposits and fees, as this function of IPN will be discontinued as well.
This transition will inevitably create added task load for your accounting department, potentially requiring hours of additional work and maybe even additional staff to handle the new load. Quick note: If you utilize the Quickbooks ProAdvisors processing tool, ProAdvisors may not be converted over automatically, and if this happens you will most likely have to contact QuickBooks, to ensure that you are actually receiving the special reduced ProAdvisor rates.
What all of these changes essentially mean is QuickBooks is rolling all payment accounts into one payment account, with one set of rates and rules, one application process, and one website to manage them all. QuickBooks is trying to standardize their accounting and payments solution.
Keep your options open with this change.
As Quickbooks looks to standardize their processing systems, they will be updating the payment processing rates and likely look to transition your account to a flat rate pricing, which may or may not be better than the effective rate you are paying today. If you wish to learn your effective rate, it is a very simple equation. Simply divide the total amount you paid in fees for a given month, by the total number of dollars processed on credit cards and you have the effective rate, such as: Total Fees / Total CC Payments = Effective Rate.
While it may be convenient for QuickBooks to merge all the accounts together, it may not be the best bang for your buck with accepting payments.
The thought of changing how you do your payments can be daunting, but it’s really a chance to revolutionize how your business takes payments. Now can be a chance to invest with another payment processor who can aid you in getting a lower rate, and perhaps help regain some of the functions lost with the demise of IPN.
Take your time and research to find a payment processor you trust, one who will keep your understands PCI Compliance. Also, to keep your billing simply, find a payment processor who will integrate with QuickBooks.
Want to fully integrate your PSA with your accounting and billing?
Read here about how your peers learned how to further improve their IT businesses through what ConnectBooster did for them, along with a fully utilized PSA software.