How to Download Payment from Merchant Service Deposits
If you accept credit or debit card payments from your customers, you need a way to process, record, and deposit those payments into your bank account. One of the easiest and most convenient ways to do that is by using merchant service deposits. In this article, we will explain what merchant service deposits are, how to set them up in QuickBooks, and how to download and record them in your accounting software. What are Merchant Service Deposits?
Definition and explanation of merchant service deposits
Merchant service deposits are a feature of QuickBooks Payments that allows you to automatically group, deposit, and record the payments you process with QuickBooks. When you process a payment with QuickBooks Payments, the payment information is transmitted to the card network and the issuing bank, and the funds are transferred to your merchant account. Then, QuickBooks groups the payments you process each day and deposits them as a single bank deposit into your bank account. QuickBooks also handles the accounting for you and records everything on your chart of accounts. Benefits of using merchant service deposits
Using merchant service deposits has many benefits for your business, such as: - Saving time and reducing errors by automating the deposit and recording process. - Simplifying your reconciliation by matching your QuickBooks records with your bank statements. - Improving your cash flow by receiving your funds faster and more securely. - Tracking your fees and expenses with a separate fee account. - Accessing your payment history and reports anytime, anywhere. How to Set Up Merchant Service Deposits in QuickBooks
Requirements and steps to set up merchant service deposits
To use merchant service deposits, you need to have a QuickBooks Payments account and a QuickBooks Desktop version 2018 or later. If you don't have a QuickBooks Payments account, you can sign up for one here. If you need to update your QuickBooks Desktop version, you can do so here. Once you have a QuickBooks Payments account and a compatible QuickBooks Desktop version, you can set up merchant service deposits by following these steps: - Go to the Banking menu and select Record Merchant Service Deposits. - Select Change your deposit settings. - Select the account QuickBook deposits payments into at your bank from the Bank for deposits dropdown. - Select the account you track fees with from the Fees account dropdown. - Select Save. How to choose the bank account and fee account for deposits
When you set up merchant service deposits, you need to choose a bank account and a fee account for your deposits. The bank account is where QuickBooks will deposit the payments you process with QuickBooks Payments. The fee account is where QuickBooks will record the fees charged by QuickBooks Payments for each transaction. You can choose any bank account and any expense account that you have in your chart of accounts. However, we recommend that you create a separate bank account and a separate fee account for your merchant service deposits. This will help you keep track of your income and expenses more easily and accurately. To create a new bank account or a new fee account, follow these steps: - Go to the Lists menu and select Chart of Accounts. - Right-click anywhere on the list and select New. - Choose Bank or Expense as the account type, depending on what kind of account you want to create. - Enter a name and a description for the account, and select Save and Close. How to Download and Record Merchant Service Deposits in QuickBooks
How to enable automatic matching and recording of deposits
Once you have set up merchant service deposits, QuickBooks will automatically download and record your deposits every day. You don't need to manually enter or match your deposits with your bank transactions. QuickBooks will do that for you and update your books accordingly. To enable automatic matching and recording of deposits, follow these steps: - Go to the Banking menu and select Record Merchant Service Deposits. - Select Change your deposit settings. - Check the box next to Automatically match and record my deposits. - Select Save. How to review and reconcile deposits with bank statements
Even though QuickBooks will automatically match and record your deposits, you still need to review and reconcile them with your bank statements. This will help you ensure that there are no errors or discrepancies in your records. To review and reconcile deposits with bank statements, follow these steps: - Go to the Banking menu and select Record Merchant Service Deposits. - Select View Previous Deposits. - Select the deposit you want to review from the list. - Compare the deposit details with your bank statement and make sure they match. - If you find any errors or discrepancies, select Edit Deposit and make the necessary changes. - Select Save and Close. - Repeat these steps for each deposit you want to review. - When you are done reviewing your deposits, go to the Banking menu and select Reconcile. - Select the bank account you use for merchant service deposits from the Account dropdown. - Enter the ending balance and the ending date from your bank statement, and select Continue. - Check off each deposit that matches your bank statement in the Deposits and Other Credits section. - Make sure that the difference at the bottom is zero, and select Reconcile Now. How to resolve errors when downloading deposits
Sometimes, you may encounter errors when downloading deposits from QuickBooks Payments. This can happen due to various reasons, such as: - Your internet connection is unstable or slow. - Your QuickBooks Desktop version is outdated or corrupted. - Your QuickBooks Payments account is not linked or activated properly. - Your deposit settings are incorrect or incomplete. To resolve errors when downloading deposits, follow these steps: - Check your internet connection and make sure it is stable and fast. If not, try restarting your router or modem, or switching to a different network. - Check your QuickBooks Desktop version and make sure it is updated to the latest release. If not, update it here. - Check your QuickBooks Payments account and make sure it is linked and activated correctly. If not, follow these steps to link and activate it. - Check your deposit settings and make sure they are correct and complete. If not, follow these steps to change them. If none of these steps resolve the error, contact QuickBooks Payments support for further assistance. Conclusion
Summary of main points and call to action
Merchant service deposits are a great way to process, deposit, and record your credit or debit card payments in QuickBooks. They save you time, simplify your reconciliation, improve your cash flow, track your fees, and access your payment history. To use merchant service deposits, you need to have a QuickBooks Payments account and a QuickBooks Desktop version 2018 or later. You also need to set up your deposit settings, enable automatic matching and recording of deposits, review and reconcile deposits with bank statements, and resolve any errors when downloading deposits. If you want to learn more about merchant service deposits, check out these resources. If you have any questions or issues with merchant service deposits, contact QuickBooks Payments support. And if you are ready to start using merchant service deposits for your business, sign up for QuickBooks Payments today! FAQs
What are the fees for using merchant service deposits?
The fees for using merchant service deposits depend on the plan you choose for QuickBooks Payments. There are two plans available: Pay as you go and Monthly plan. The Pay as you go plan has no monthly fee but higher per transaction fees. The Monthly plan has a lower per transaction fee but a monthly fee of $20. You can compare the plans and their fees here. How long does it take to receive merchant service deposits?
The time it takes to receive merchant service deposits depends on the type of payment you process. For credit card payments, it usually takes 2-3 business days. For debit card payments, it usually takes 1 business day. For ACH bank transfers, it usually takes 2-7 business days. You can check the status of your deposits anytime in your QuickBooks Payments account. How can I view and edit my deposit settings?
You can view and edit your deposit settings anytime in QuickBooks Desktop. To do that, follow these steps: - Go to the Banking menu and select Record Merchant Service Deposits. - Select Change your deposit settings. - Make any changes you want to your bank account, fee account, or automatic matching and recording option. - Select Save. What if I don't have QuickBooks Payments?
If you don't have QuickBooks Payments, you can still record your credit or debit card payments in QuickBooks, but you will need to do it manually. You will also need to use a third-party payment processor to process and deposit your payments into your bank account. To record your payments manually, follow these steps: - Go to the Customers menu and select Receive Payments. - Enter the customer name, amount, date, and payment method. - Select Save and Close. - Go to the Banking menu and select Make Deposits. - Select the payments you want to deposit from the Payments to Deposit window. - Select OK. - Enter the bank account, date, and memo for the deposit. - Select Save and Close. Where can I find more information and support for merchant service deposits?
You can find more information and support for merchant service deposits on the QuickBooks website. Here are some useful links: - Merchant service deposits overview - Merchant service deposits FAQs - Merchant service deposits troubleshooting - QuickBooks Payments support
how to download payment from merchant service deposits
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