How To Save Up to 92% On ACH Fees In QuickBooks Online
UPDATE ON 12/13/2023: It appears that QuickBooks Online has updated their fee schedule again! They have now removed the $10 cap on all ACH fees, meaning ACH fees will now cost 1% regardless of the transaction amount. This makes it even more important for you to hurry and set up XpressPay to save money in your small business.
Also, for years, our company had QuickBooks Payments turned off on all invoices. Last week, QuickBooks turned it on without notifying us, and suddenly, customers were paying our QuickBooks invoices with credit cards and ACH via QuickBooks.
I had to manually go through all the invoices we created and turn them off one by one. I also had to look for the setting to have them turned off for future invoices. The setting was not where it used to be and was very hard to find.
To turn it off, go to Account and Settings > Sales > Invoice Payments. Make sure "Accept Credit Cards" and "Accept ACH" are switched to Off.
Who wants to save money? Got your attention? Good. I’m going to show you how to save up to 92% in processing fees when using ACH for your customers’ payments. One caveat though, in order to take advantage of this offer, you must use QuickBooks Online. Sorry, but this method will not work with QuickBooks desktop.
ACH stands for Automated Clearing House. The fee for receiving ACH payments in QuickBooks Online used to be free or at the low payment of $0.75 per transaction. The current fee structure is now 1% of every dollar processed. Let’s say you’re processing $1,000, that’s $10 in fees. If your amount is higher, it will still be $10 since there’s a cap. This extra expense is unnecessary and I’ve found a way to reduce it. Receiving checks in the mail is an antiquated way of doing business. It requires a lot of manual data entry. The checks have to be marked as paid, recorded and then cashed. This won’t work if you want to run your business more efficiently.
What I’ve done is I compiled a list for you of merchant processors that receive ACH payments. I’ve researched these companies to find out their pricing. This was a lengthy process. When I got to the bottom of the list, I came across XpressPay and hit the jackpot. XpressPay is a small company based in upstate New York and I think they’re great. Their fees are extremely affordable and they sync with QuickBooks Online.
This is how it works. When sending out your invoices, include the link they will provide and instruct your customers to “Click here to pay.” The link will bring your customers to XpressPay’s website where they pay their invoice. Once the payment goes through, the invoice will be marked as paid in your QuickBooks Online system. It’s easy and saves you time. Your time is better spent on running your business.
Because I love this company, I became a referral partner and I do make a small commission (though not enough to retire). If you decide to go with them, and I sincerely hope that you do, I have a small request. Please go through my website fill out your contact information at the bottom of this page so that the good folks at XpressPay know that you are one of my referrals. This assists me in continuing to provide the excellent content that you’ve come to rely on.
| undefined | Funding Time | One Time Fee* | Monthly Fee | Per Transaction Fee | Who Pays Per Transaction Fee? |
|---|---|---|---|---|---|
| eCheck | 2 Business Days | $199* | 6.95 | $0.75 | Merchant Absorb** |
| eCheck | 2 Business Days | $199* | 6.95 | $2.95 | Passthrough to Customer** |
| Credit Card | 2 Business Days | $199* | 6.95 | $0.40 + 3.0% | Passthrough to Customer*** |
| Credit Card | 2 Business Days | $199* | 6.95 | Interchange Plus (dependent on card type/brand) | Merchant Absorb*** |
| Credit Card | 2 Business Days | $199* | 6.95 | $0.40 + 2.85% (Call for Current Pricing) | Merchant Absorb*** |
*The one time fee is the total one time fee. So if you decide to accept both eCheck and credit card, you pay $199 total, not $398.
**You can choose to either pass the eCheck fee onto the customer, or you can choose to pay the fee. You have to pick one, not both. Keep in mind that if you choose to let the customer pay the processing fee, then it’s cheaper for them to print and mail you a check, and the whole point of setting this up is to help you save time and labor costs by automating your accounting processes.
***You can choose to either pass the credit card fee onto the customer, or you can choose to pay the fee. You have to pick one, not all three. The most popular option is to pass the credit card fee onto the customer.
On the bottom of this page, you will find a calculator where you can enter the approximate amount of transactions you're expecting to process in a year and the average amount per transaction. This calculator will spit out the approximate fee you would pay with QuickBooks versus XpressPay. The savings will be crystal clear.
How exactly will you be saving up to 92% in fees you ask? I initially did this research for a real estate brokerage company who collects deposits from new tenants. The tenants are on a payment plan for the first month, last month, security and broker fees. If there are roommates, I estimated $1,000 per room with each person paying into their own portion of the rent. So that's a thousand transactions times an average of $1,000 per transaction, which equals $1 million. In this example, if QuickBooks Online was used, the brokerage company would be racking up $10,000 in fees. With XpressPay, I calculated $800 in fees every year to process $1 million in volume. That’s $800 versus $10,000, that a saving of up to 92%.
We've been using XpressPay for four and a half months and have accumulated data within that time frame. We’ve processed 135 transactions averaging $1276. When you multiply that amount based on the system report, we've processed $172,000 so far. Let’s take a look at how much money was paid in merchant processing fees. From November through April, we paid $139 in fees. With real data to work with from XpressPay, the QuickBooks Online fee would be $1,350.
If you’re like me and are excited about saving money with XpressPay, play around with the estimated savings calculator. You will see a contact form directly below. Please fill it out so that I can forward it to my contact at XpressPay. Of course, you could call XpressPay directly without ever mentioning Annie Yang Financial Corporation. But I would be super appreciative if you became one of my referrals. Thank you in advance.
