QuickBooks Credit Card Processing Fees: Ultimate Guide

finding out which QuickBooks is right for me

Dec 12, 2023

Navigating the realm of credit card processing can often seem like a daunting task for businesses, especially when it comes to platforms like QuickBooks. 

Understanding QuickBooks credit card fees is not just about keeping track of expenses; it’s about unlocking the potential for smarter financial management and cost optimization.

QuickBooks, renowned for its comprehensive accounting solutions, also offers credit card processing services. These services, while convenient, come with a variety of fees that can impact your business’s financial health. From transaction fees to monthly charges, each fee plays a crucial role in your overall payment processing strategy.

In this blog post, we dive deep into the intricacies of QuickBooks credit card processing. We’ll explore:

  • The different types of fees
  • How they can affect your business
  • And most importantly, how you can effectively manage and minimize these costs. 

Understanding these fees is essential for any business looking to maintain a healthy bottom line and streamline its financial operations.


Understanding Credit Card Processing Fees

Comprehending credit card processing fees can be a complex task for any business. It’s crucial to understand the different types of fees involved to manage your finances effectively and make informed decisions.

Transaction Fees

Transaction fees are a fundamental part of credit card processing. They are charged each time a customer makes a payment using a credit card. Typically, this fee is a combination of a percentage of the transaction amount and a fixed fee. The rate can vary depending on the payment processor and the type of card used.

Monthly Fees

Some payment processing services charge monthly fees. These are fixed costs that businesses pay regardless of the number of transactions processed. Monthly fees can cover various services, including customer support, payment gateway access, and monthly statements.

Chargeback Fees

Chargebacks occur when customers dispute a charge, and the business is often charged a fee for this process. These fees are meant to cover the administrative costs associated with investigating and processing the chargeback claim.

QuickBooks Specific Fees

With QuickBooks, businesses often have to deal with fees like merchant account fees and payment fees. 

The QuickBooks merchant account fees are associated with the account that enables businesses to process credit and debit card transactions. 

QuickBooks payment fees, on the other hand, are related to transactions processed through QuickBooks solutions. These fees can vary based on the plan chosen and the nature of the transaction, making it essential for businesses to carefully consider their options.

Streamline your credit card processing and reduce fees with eTreem’e tailored solutions for QuickBooks.


How Fees Impact Your Business

Credit card processing fees can significantly impact the bottom line of a business. While they might seem small on a per-transaction basis, they can accumulate over time, especially for businesses with a high volume of transactions. High fees can erode profit margins thus make sure to keep a close eye on these costs.

calculating credit card processing costs

Moreover, the transparency and predictability of these fees are also important. Unexpected fees or complicated fee structures can lead to budgeting challenges and financial uncertainties. Businesses need to understand not just the amount, but also the structure of these fees to plan and manage their finances effectively.


QuickBooks Credit Card Processing Rates

QuickBooks offers a structured approach to credit card processing rates. This approach is tailored to accommodate various transaction types and business models. Ensure to understand the rates as they directly impact the cost-effectiveness of your financial transactions.

Qualified Rates

Qualified rates are generally the most favorable. They apply to standard transactions involving non-reward credit cards. These rates are lower because such transactions are deemed low-risk. An example of a low- risk transaction is one involving physical cards presented at the point of sale, ensuring a higher level of security and a lower chance of fraud.

Mid-Qualified Rates

Mid-Qualified rates come into play for slightly riskier transactions. These include transactions where reward cards are used or instances where the card is not physically present but key information like the billing address is verified. The increased risk in these transactions results in moderately higher rates.

Non-Qualified Rate

The Non-Qualified rate is the highest and is applied to transactions deemed high-risk. This includes processing corporate cards or transactions where neither the card nor additional verification details are present. Such scenarios pose a higher risk of fraud, justifying the increased rates.

Factors Affecting Rates

  • Business Type: The industry a business operates in can significantly influence the rates. High-risk industries, such as travel or entertainment, might face higher rates due to a greater likelihood of chargebacks and fraud.
  • Card Type: The type of card used in transactions affects the rate. For instance, transactions with rewards, corporate, or international cards typically incur higher processing fees due to the additional benefits they offer and the increased processing risks.
  • Transaction Method: The method by which a transaction is processed plays a crucial role. Swiped or chip transactions are usually charged lower rates due to their lower risk of fraud, whereas manually keyed-in transactions, which are more susceptible to fraud, attract higher rates.


Hidden Costs and Additional Charges

Processing credit card transactions with QuickBooks usually comes with hidden costs and additional charges that can impact your overall expenses, making it essential to understand them fully.

PCI Compliance Fees

PCI Compliance Fees are charged to ensure that a business is adhering to the Payment Card Industry Data Security Standards (PCI DSS). These fees cover the cost of maintaining a secure environment for processing credit card transactions. While essential for security, they can be an unexpected expense for many businesses. It’s important to factor in these costs when calculating the total expense of your credit card processing solution.

Equipment Costs

For businesses that require physical equipment to process credit card transactions, such as card readers or point-of-sale systems, equipment costs can add up. These are often overlooked when initially setting up a payment processing system. 

Depending on the provider, you might have the option to purchase, lease, or rent this equipment. Whatever choice you make comes with its cost implications. 

Monthly Minimum Fees

Monthly minimum fees are charged when your credit card transactions do not meet a certain threshold set by the payment processor. If your business has a slow month or if you’re just starting out, these fees can be an unwelcome surprise. Therefore, it’s best to understand the transaction volume required to avoid these fees and plan your finances accordingly.


Tips for Minimizing Credit Card Processing Fees

The landscape of credit card processing fees can be complex, but there are strategic ways to minimize these costs. Understanding and implementing certain practices can significantly reduce the burden of these fees on your business, especially when using systems like QuickBooks. 

scrutinizing credit card fees 1

Here are some practical tips to help you keep these costs in check.

  • Negotiating with Processors

Don’t hesitate to negotiate terms with your credit card processors. Many businesses overlook this possibility, but processors often have flexibility, especially if you have a high volume of transactions. Discuss lowering rates or waiving certain fees to find a more cost-effective solution for your business.

  • Optimal Transaction Methods

Using the right transaction methods can lower processing fees. Encourage methods that are considered lower risk, such as swiped or chip transactions, which typically have lower fees compared to keyed-in transactions. Educating your staff and customers about these preferred methods can lead to significant savings.

  • Understanding Interchange Fees

Interchange fees, set by credit card networks, vary based on several factors. By understanding these fees, you can tailor your transaction methods to qualify for lower rates. For instance, transactions with basic credit cards usually incur lower interchange fees compared to premium or rewards cards.

  • Regularly Reviewing Account Statements

Regularly reviewing your account statements is all about managing credit card processing fees. This practice helps you spot any discrepancies, unexpected charges, or changes in fee structures. 

Staying vigilant about your account activity allows you to address issues promptly and ensures you’re always aware of exactly what you’re paying for. Keeping a close eye on your statements can also help you identify patterns or trends in your transactions that could inform more cost-effective processing strategies.


Key Tactics to Lower QuickBooks Credit Card Processing Costs

Mastering the complexities of credit card processing fees, particularly those associated with QuickBooks, is a crucial skill for any business aiming to optimize its financial operations. 

We’ve delved into the major fee categories: transaction fees, monthly fees, chargeback fees, and specific QuickBooks credit card fees, each with its unique impact on your business’s bottom line.

Remember, understanding these fees is just the first step. Implementing strategies to minimize them, such as negotiating with processors, choosing optimal transaction methods, and staying informed about interchange fees, can lead to substantial savings. Regularly reviewing account statements also plays a pivotal role in keeping these costs under control.

Wrapping up, it’s important to be proactive and well-informed. This will help you manage credit card processing with confidence and ensure your business remains financially healthy and efficient.

If you’re looking to optimize your payment processing and cut down on unnecessary costs, eTreem offers the solutions you need. Take the first step towards financial efficiency by exploring our services today – your business’s bottom line will thank you.