Merchant Account Service

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Merchant Account Service

C o n t e n t S

Introduction . . . . 2

What is a merchant account? . . . . 2

What types of credit cards can I charge? . . . . 3

Getting started . . . . 3

Apply . . . . 3

Set up . . . . 4

How it works . . . . 5

Recurring credit card charges . . . . 7

Fraud protection . . . . 9

Address Verification Service . . . . 9

Card Verification Value . . . . 10



Accepting Visa, MasterCard, American Express and other credit card types can attract new customers, help you get paid faster, and save you time in collecting payments . This ability to accept credit card payments is called a mer-chant account service .

This document will provide you will important informa-tion about the QuickBooks Merchant Account Service . It will show you how it works within QuickBooks Online Edition and provide tips for making the most of your mer-chant account .

What is a merchant account?

A merchant account is an agreement between you and a financial institution (merchant account service provider) that allows you to accept funds from credit card pay-ments from your customers . In this relationship, the fi-nancial institution agrees to pay you the money for credit card purchases in exchange for the ability to collect on the debt owed by your customer . The financial institution, through this merchant account service, will provide you a system through which you can validate which customer credit card transactions are valid and which ones are not . Typically you will pay the merchant account service pro-vider a one-time setup fee, a per-transaction fee, and a monthly fee .


credit card payments directly through QuickBooks Online Edition . You will not need to re-enter them .

F I g u r e 1

Credit card transaction process

What types of credit cards can I charge?

When you initially sign up for the QuickBooks Merchant Service, you will be approved to charge Visa and Master-Card credit cards only . To be able to take American Ex-press and Discover cards, you will need to call the Quick-Books Merchant Services group at 800-558-9558 .

getting started


You must first apply for a merchant account through your QuickBooks Online Edition company . This will ensure that your merchant account is connected to your QuickBooks Online Edition company .

Start by going to the Company menu and selecting

Pref-erences . Click on the Accept Credit Cards link on the left


Number if you do not have a Tax ID number . You will also need your bank account number and routing number . You will be notified by email regarding your approval be-tween 2 and 5 business days . Once you receive the email from QuickBooks Merchant Services, you can begin pro-cessing credit cards within QuickBooks Online Edition .

Set up

Once you have been approved and notified that your merchant account is ready, you need to log into your QuickBooks Online Edition company and set up the Pref-erences for accepting credit cards . Go to the Company menu and select Preferences . Then click on the Accept

Credit Cards link at the left .

F I g u r e 

Setting the merchant account Preferences

You will also need to create a Visa and MasterCard pay-ment method in your Paypay-ment Method List . Go to the

Company menu and select All Lists (List Overview) . Click


F I g u r e 

Create credit card Payment Methods

How it works

To charge your customers’ credit cards, use the same screens that you normally would when recording pay-ments or giving refunds . At the bottom of the Sales ceipt, Received Payment, Invoice with a deposit, and Re-fund Receipt screens you will be able to select the credit card type . If you have already entered in the customer’s credit card information through the Customer Informa-tion screen, their credit card informaInforma-tion will appear . If you have not, click the Edit button to enter in the credit card number, expiration date, etc .

F I g u r e 

Charging your customer’s credit card


customer’s address that they have provided you matches with the billing address that their credit card issuer has . You will see a status screen indicating whether or not the transaction has been approved .

F I g u r e 

Credit card approval status

Your merchant account transactions for the day will be processed late that same night . If there are any transac-tions that were declined, you will be notified with an alert in the Thing To Do section of your QuickBooks Online Edition homepage . Click on the “Correct card processing errors” link and follow the instructions for handling these transactions .

Funds from your credit card transactions will be depos-ited into your bank account in as little as 1 day, but this time can vary depending on your bank account .

There may be times when you need to give a customer a refund on their credit card . If you are refunding the cus-tomer on the same day that they made the purchase, you can simply void that original charge .

Find the original transaction (Sales Receipt, Received Payment, or Invoice with a deposit) .


Click the Payment has been processed link at the bottom left .

Click Void Payment .

Follow the instructions in the pink box . Either void the entire transaction or change the payment method to check, cash or a different credit card .

This will cause this charge to not go through in the nightly batch . The charge will never appear on the cus-tomer’s card .

If you need to process a refund and it is not the same day as the original charge, use the Refund Receipt screen .

Go to the Customers menu and select Give Refund or Credit .

Select Refund for goods or services that didn’t satisfy the customer, even if this description doesn’t fit your scenario.

Fill out the Refund Receipt and then check the box at the bottom for Process Credit Card .

Click Save .

Upon saving the transaction an authorization box will appear, confirming the refund . This will also go through during the nightly batch .

recurring credit card charges


Recurring Templates . You set the schedule for how often you want to charge their cards .

Choose Recurring Templates from the Company menu .

Click New .

Select Sales Receipt in the Transaction Type field and click OK .

Fill out the Template Name and schedule .

Fill out the Sales Receipt as you normally would and be sure to check the Process credit card payment

checkbox .

Click Save Template .

To comply with Visa and MasterCard guidelines, you must have written authorization from your customers before setting them up for recurring credit card billing . Quick-Books Online has an authorization form that you can use or you can create one yourself .

Click Help on the top right side of the screen . Type authorize in the Index .

Select authorizing merchant service transactions . Click the Click to show topic button .


F I g u r e 

Recurring Authorization Form

Fraud protection

The QuickBooks Merchant Service has tools that can help you avoid fraudulent charges . It is not mandatory that you use these tools, but it is recommended .

Address Verification Service


bank records . The Credit Card Transaction Status authori-zation box will tell you if these addresses matched or not .

F I g u r e 

Approval status with AVS check

This check is carried out using the Address Verification Service (AVS) . Address verification helps you avoid credit card fraud and chargebacks (a credit card payment that is later rejected) for transactions in which the credit card is not physically present at the time of the sale .

You can still process the credit card payment even if the address does not match . The results of the Address Veri-fication Service check are for your information only . You can still continue on with the charge if the AVS does not match .

Card Verification Value


This can help to prove that your customers really do have their credit cards .

You can choose to use CVV when accepting credit card payments by setting the Preference to remind you to en-ter in this number with every credit card payment .

Upon saving the credit card transaction, you will have the option of entering the CVV number to verify this credit card . It will not be required .

F I g u r e 

Card verification value box

QuickBooks Online does not save the CVV numbers, since it is important that you ask for it every time you take a payment over the Internet or by phone .

What it will not do


Your customers will not be able to pay an invoice from you on their own . You can send your customers their invoice by email, but they will not be able to pay their invoices over the internet with a credit card . You will need to enter in your customers’ credit card information the first time and process the transaction through Quick-Books Online Edition .




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