QuickBooks Payments Accounts Being Automatically Created With All New QB Online Subscriptions

May 12, 2023

NOTE: It has been brought to our attention that New "Firm-Billed" (ProAdvisor Preferred Pricing) QBO Subscriptions will not have this QuickBooks Payment account setup. If you are using QBOA and setting up Firm Billed QBO Subscriptions, you will not see this happen for your clients.

If you're a QuickBooks accounting professional, you may have noticed a recent change in how new subscriptions to QuickBooks Online are handled. Well actually, you probably haven't noticed it because the process is part of the setup interview that most people may not even realize what's happening. Intuit, the company behind QuickBooks, has started automatically creating QuickBooks Payments accounts for all new subscriptions. In this blog article, we'll explore what this change means for you and your clients, and how it might impact your accounting practice.

First, let's take a look at what QuickBooks Payments is and how it works. QuickBooks Payments is a payment processing service that allows businesses to accept credit card and bank transfer payments directly within QuickBooks. It's a convenient way for businesses to streamline their payment processes and reduce the amount of time and effort required to reconcile their accounts. We love and recommend using QuickBooks Payments for the time savings of this integrated service. We have an entire course you can review for free as part of a 30 day trial.

What Changed and What Does this Mean?

Now, let's talk about what it means for Intuit to automatically create QuickBooks Payments accounts for all new subscriptions. Essentially, this means that every new QuickBooks Online user will have access to QuickBooks Payments by default. They won't need to sign up for it separately or go through any additional setup steps. The way this happens is the setup interview will ask them a question of how they would like to get paid from their customers. If they answer by credit cards, then invoices created will automatically be enabled to accept credit cards or ACH. So far, there's nothing inherently wrong with that, They haven't opted into anything, signed up for anything....No harm no foul. What is happening on the backend is Intuit is starting the process of signing up for an account, it will assign a merchant account number to the QuickBooks Online subscription, but it's in a pending state.

What happens next is the QuickBooks Online user goes about their business, but the next time they create a send an invoice, it will be payment enabled. This means that the email sent to their end customers will have an option to "Pay Now" which is very convenient for them. Now here is when it gets tricky. If that customer pays the invoice, Intuit will begin the process of transferring that customer's finds into the pending merchant account. This will prompt a message to the QuickBooks Online user to let them know the in order to collect those funds, they will need to finish applying for the merchant account so they will know where to deposit the funds.

For some businesses, this might be a welcome change. QuickBooks Payments can be a great way to simplify their payment processes and improve cash flow. For others, however, it might be an unwelcome addition to their QuickBooks account. They may prefer to use a different payment processor or they may not want to pay the additional fees associated with QuickBooks Payments.The positive effect of this is that Intuit has literally proved their concept that QuickBooks Payments is easy to use, simple for customers to pay online, and improves cash flow by getting paid faster. As a QuickBooks ProAdvisor, Intuit will offer a discount on these fees, so you could actually save them money. Here is a side by side comparison of the rates courtesy of our Partners at Complete Business Group:

So, how does this change impact you as a QuickBooks accounting professional? Well, if you have clients who are new to QuickBooks Online, you'll need to be aware that they now have access to QuickBooks Payments by default. You may want to educate them on the benefits of using QuickBooks Payments and how it can help them streamline their payment processes. Knowing that they could potentially be using a service that you could save them some money on their fees, you might want to ensure they are aware this will happen and you can be proactive in setting this account up for them ahead of time to take advantage of the discounted rates. You can fill out the application on our QuickBooks Payments page and we can connect it for them. If you are already a CBG Partner, please do this through your own landing page.

On the other hand, if you have clients who prefer to use a different payment processor, you'll need to help them navigate the process of opting out of QuickBooks Payments. Intuit has provided instructions on how to do this, but it's always helpful to have a knowledgeable accounting professional to guide them through the process.

One potential benefit of this change is that it could lead to increased adoption of QuickBooks Payments among QuickBooks users. If more businesses are automatically enrolled in QuickBooks Payments, they may be more likely to give it a try and see the benefits for themselves. This could lead to more streamlined payment processes and improved cash flow for many businesses.

Bottom Line

Intuit's decision to automatically create QuickBooks Payments accounts for all new subscriptions to QuickBooks Online is a significant change that could impact many businesses. As a QuickBooks accounting professional, it's important to stay informed about this change and be prepared to educate your clients on the benefits and drawbacks of using QuickBooks Payments. By doing so, you can help your clients make informed decisions about how to best manage their payment processes within QuickBooks.

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