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Join The List Learn More With Our QuickBooks Online Course Explore the chapters in the guide.

1. How to Set Up QuickBooks Online
2. Module 1: Setting up QuickBooks Online
   1. How To Set Up Company Information
   2. How to Customize Your Dashboard
   3. How To Set Up Sales Form Content
   4. How To Customize Invoices, Sales Receipts & Estimates
   5. How To Set Up Products and Services
   6. How To Set Up Messages
   7. How To Set Up Customer Statements
   8. How To Customize Expenses
   9. How To Set Up Advanced Settings
   10. How To Set Up Multiple Users
   11. How To Set Up the Chart of Accounts
   12. How To Set Up the Products and Services List
   13. How To Set Up Customers
   14. How To Set Up Vendors
3. Module 2: Managing Sales and Income
   1. How To Create Quotes, Bids, and Estimates
   2. How To Create and Send Invoices
   3. How To Receive Payments
   4. How To Create & Send Sales Receipts
   5. How to Enter Partial Payments
   6. How to Track Billable Hours
4. Module 3: Managing Bills and Expenses
   1. How To Write & Print Checks
   2. How To Enter Bills
   3. How To Pay Bills
   4. How To Make Expenses Billable
   5. How To Write off a Bad Debt
5. Module 4: Managing Banking Transactions
   1. How To Import Bank Transactions
   2. How To Enter Banking Transactions Manually
   3. How To Manage Downloaded Banking Transactions
   4. How To Record Bank Deposits
   5. How To Use the Undeposited Funds Account
   6. How To Transfer Funds Between Bank Accounts
   7. How To Record Bounced Checks From Customers
   8. How To Process Bank Reconciliations
6. Module 5: Managing Business Credit Card Transactions
   1. How To Import Credit Card Transactions
   2. How To Manage Downloaded Business Credit Card Transactions
   3. How To Enter a Credit Card Refund
   4. How To Reconcile Business Credit Card Accounts
   5. How To Process Credit Card Sales With QuickBooks Payments
   6. How To Record Credit Card Sales With a Third-party Credit Card Processor
7. Module 6: Setting Up and Managing Payroll
   1. How To Process Payroll
   2. How To Set Up & Pay Payroll Tax
   3. How To Add Historical Payroll Data
   4. How To Set Up QuickBooks Payroll Direct Deposits
   5. How To Print Payroll Checks
   6. How To Run Payroll Reports
   7. How To Reconcile Payroll Liabilities
8. Module 7: Reporting
   1. How To Run a Profit and Loss Statement
   2. How To Create a Balance Sheet Report
   3. How To Run a Statement of Cash Flows
   4. How To Run an A/R Aging Report
   5. How To Run an A/P Aging Report
9. Module 8: Advanced Accounting in QuickBooks Online
   1. How To Make a Journal Entry
   2. How To Use Classes and Locations
   3. How To Create Recurring Transactions
   4. How to Create and Manage Projects

Related Content

• What Is QuickBooks? Inside Look at the Suite Trusted by Millions of Small Businesses
• Top 10 QuickBooks Online Features To Know
• QuickBooks Online Comparison: Plans & Pricing Guide

This tutorial will show you how to process credit card payments in QuickBooks Online using QuickBooks Payments. First, we’ll go over how to set up QuickBooks Payments, as you’ll need an account to process payments. Then, we’ll look at how to accept credit card payments in QuickBooks Online using a sales receipt and a customer invoice.

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How To Set Up QuickBooks Payments in QuickBooks Online

Heads up! If you already have a QuickBooks Payments account, you can skip this part and jump to how to record a credit card payment using a sales receipt.

Step 1: Navigate To Payment Settings

Click on the gear icon in the upper right corner of your QuickBooks Online screen, then select Account and settings under Your Company, the first column, as shown below.

Navigate to Account and settings in QuickBooks Online

From the Account and Settings screen, click on Payments in the left menu bar.

Navigate to Payments settings in QuickBooks Online

Step 2: Apply for a QuickBooks Payments Account

If you already have a QuickBooks Payments account, you should proceed to Step 3. If you don’t have one, you need to apply by clicking on the green Learn more button in the Payments settings screen (shown in the image above). Next, you’ll be taken to the QuickBooks Payments account application window consisting of three sections, as shown below.

QuickBooks Payments account application

1. Business info: You’ll be asked to provide business information, such as company name, business type, and business address.
2. Personal info: QuickBooks will prompt you to provide personal information, including your full name, address, and phone number.
3. Payment deposit info: QuickBooks will ask which of your bank accounts should receive your credit card deposits and be charged credit card fees. If you haven’t already added a bank account to your chart of accounts, you must do so before you can set up QuickBooks Payments.

If it is your first time setting up QuickBooks Payments, then you should see a start button next to each section, just like in the screenshot above. Otherwise, you should see a View button.

When all three sections are complete, click the green Get set up button at the bottom of the screen (not shown in our image).

Step 3: Review Payment Settings

Navigate to the payment settings screen as you did in Step 1. Now that you’ve signed up for QuickBooks Payments, your Payment settings screen should look like this:

Review payment settings in QuickBooks Online

1. Merchant details: Click the green Manage account button to go to your QuickBooks Payments account.
2. Deposit accounts: The bank account listed in this section will be used to deposit your credit card proceeds and withdraw processing fees. Changing the bank account here will not affect the QuickBooks account wherein the transactions are recorded.
3. Chart of Accounts: This field identifies
   1. the QuickBooks bank account to record deposits; and
   2. the QuickBooks expense account to categorize the processing fees.

To designate an account to record processing fees, click anywhere in the Chart of Accounts section.

Next, click on the drop-down menu next to Processing fees (under Charts of Accounts) and choose an expense account to charge your credit card processing fees. If the account is not yet in QuickBooks, you can create a new account by clicking on + Add New from the drop-down list that shows up when selecting an account. After selecting an expense account, click the green Save button.

Select an account to record credit card processing fees

How To Record a Credit Card Payment Using a Sales Receipt

Now that you have a QuickBooks Payments account, you can issue sales receipts to record customer payments via credit cards, debit cards, and bank transfers. This process should be easier if you completed our tutorial on how to create and send sales receipts in QuickBooks Online.

Step 1: Create a Sales Receipt

Click + New at the top of the left menu bar and then select Sales receipt under Customers, the first column.

Create a new sales receipt in QuickBooks Online

Step 2: Enter Credit Card Information

To accept payment via a credit card, debit card, or bank transfer, click the drop-down box under Payment method and choose the form of payment.

Process credit card payments with sales receipts

After selecting the payment method, click on Enter credit card details to input the customer’s credit card account information. The Enter credit card details field in the sales receipt only appears if you have a QuickBooks Payments account.

Enter customer credit card information

After inputting all the credit card information, hit the green Use this info button. The credit card transaction hasn’t yet been processed, and you’ll receive a message that you have 10 minutes to process the transaction before the credit card information is removed from the sales receipt. After acknowledging you have 10 minutes, you’ll be redirected to the sales receipt screen.

Step 3: Save Sales Receipt & Process Credit Card Payment

Sales receipt with credit card information

The Sales Receipt screen now shows the last four digits of the credit card number that will be charged. To process the transaction, click the green Save and send button.

Step 4 (Optional): Verify the Credit Card Transaction Processed

Reopen the sales receipt by hovering over Sales in the left menu bar, clicking on All Sales, and then finding the sales receipt transaction you just created. After opening the sales receipt, verify that it reads “Transaction processed” under the Payment method.

Verify the credit card payment processed on a sales receipt

Click on Transaction processed to view the details of the transaction.

View the credit card transaction receipt

You can either print the transaction details by clicking the Print button or issue a refund to the customer by hitting the Refund button.

How To Record a Credit Card Payment on an Invoice

Now that you’ve learned how to accept credit card payments in QuickBooks Online using a sales receipt, you should explore how to record a payment on a customer invoice.

This process is unnecessary if your customer pays an invoice online by clicking Pay Invoice in the email sent to them. You can enable online payments by clicking the gear icon in the upper-right corner of the screen, selecting Company settings in the first column, and then clicking Sales.

Step 1: Navigate To the Receive Payment Screen

Click on + New above the left menu bar and then select Receive payment in the first column.

Open the Receive payment screen in QuickBooks Online

Step 2: Enter the Credit Card Information in the Receive Payment Screen

The Receive Payment screen should be completed, as shown in our guide on how to receive payments in QuickBooks Online—except the payment method should be changed to a credit card. Also, just like in the sales receipt form, you will now see an Enter credit card details option since you set up QuickBooks Payments.

Click the drop-down menu under Payment method and select the credit card processor.

Enter payment method for an invoice payment

Click Enter credit card details to open a window to input the customer’s credit card account information:

Enter credit card information to receive payment on an invoice

Once the credit card information is entered, click the green Use this info button to continue. The credit card hasn’t yet been charged, and you have 10 minutes to complete the transaction before the credit card information is removed.

Step 3: Save the Payment to Process the Credit Card Transaction

The Receive Payment screen will now show the last four numbers of the credit card to be charged.

Receive Payment screen with credit card information

Click the green Save and close button to process the credit card transaction and charge your customer’s credit card

What Happens Next?

The credit card payments you received won’t be reflected in your bank account register until the funds are transferred from QuickBooks Payments. Once the funds are in your bank, QuickBooks will automatically record the deposits (matching them with the corresponding transactions) and update the account registers you specified in the QuickBooks Payments options earlier.

Additionally, QuickBooks will account for any processing fees associated with the credit card transactions—recording them separately in the respective account registers. This comprehensive recording process is one of the reasons QuickBooks Online is our overall best small business accounting software.

What Are the Benefits of Using a QuickBooks Payments Account?

• There’s nothing to install for QuickBooks Payments to work with QuickBooks Online.
• Your accounts and financial statements are always up-to-date since QuickBooks Payments is integrated into QuickBooks.
• Your customers can make payments online by clicking the Pay Now button on their emailed invoices.
• You can accept payments using your mobile device via the QuickBooks Online mobile app.
• Payments are deposited to your bank account, on average, within two or three business days after the transaction date.
• You get competitive rates for payment processing, helping you minimize transaction costs.

To learn more about the features and benefits of using this payment processor, head to our QuickBooks Payments review.

Frequently Asked Questions (FAQs)

What information do I need to provide when setting up a QuickBooks Payments account?

You will need to provide business information. such as your business name, industry type, and company address. You will also have to provide personal details, like the owner’s full name and personal address, and enter your payment deposit info, such as bank account details.

Are there any transaction fees associated with processing credit card payments through QuickBooks Payments?

Yes, there are. The fees vary depending on factors such as the type of transaction and the payment method used.

How long does it take for the funds to be deposited into my bank account through QuickBooks Payments?

Typically, funds are deposited into your bank account within two to three business days. However, if you have a QuickBooks Checking account, you can get free instant deposits.

Wrap Up

Congratulations on completing another QuickBooks course. You just learned how to process credit card payments in QuickBooks Online through QuickBooks Payments. The next guide in our series of free QuickBooks tutorials is how to record credit card sales with a third-party credit card processor, which will teach you how to enter credit card sales when using a non-QuickBooks-integrated processor.

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About the Author

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Mark Calatrava

Mark Calatrava is an accounting expert for Fit Small Business. He has covered more than 50 accounting software for small businesses and niche industries and has developed an in-depth knowledge of the important features of accounting software, including how the importance of these features vary by business. As a QuickBooks ProAdvisor, Mark has extensive knowledge of QuickBooks products, allowing him to create valuable content that educates businesses on maximizing the benefits of the software.

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