QuickBooks^® Request for Payment Invoicing

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To utilize Immediate Payments Solution for real-time payments via FedNow, integrating this system with QuickBooks Online (QBO) can streamline your accounting and payment processes. Below is a detailed guide on how to set up and implement these real-time payments for U.S. companies and businesses, including POS, eCommerce, and MOTO transactions.

Steps to Implement Immediate Payments Solution with FedNow in QBO

1. Setting Up Immediate Payments Solution with FedNow in QBO

A. Register and Configure Immediate Payments Solution

1.     Register an Account:

·        Sign up for Immediate Payments Solution and complete the necessary setup to enable FedNow Real-Time Payments.

2.     API Integration:

·        Follow the API documentation provided by Immediate Payments Solution to integrate their payment processing system with QBO.

2. Creating Fee and Discount Items in QBO

1.     Create a Cash Discount Item:

·        Go to Sales > Products and Services > New > Service.

·        Name it “Cash Discount” and set the rate to a negative percentage (e.g., -2%).

2.     Create a Surcharge Item:

·        Go to Sales > Products and Services > New > Service.

·        Name it “Credit Card Surcharge” and set the rate to a positive percentage (e.g., 2%).

3.     Create a Service Fee Item:

·        Go to Sales > Products and Services > New > Service.

·        Name it “Service Fee” and set a fixed amount or percentage.

4.     Create a Convenience Fee Item:

·        Go to Sales > Products and Services > New > Service.

·        Name it “Convenience Fee” and set a fixed amount or percentage.

3. Applying Fees and Discounts on Invoices in QBO

A. Creating an Invoice with Multiple Payment Options

1.     Create an Invoice:

·        Go to Sales > Invoices > New Invoice.

·        Fill in the customer details and add the products/services.

2.     Add Payment Option Notes:

·        In the Message on invoice field, include notes about payment options, discounts, and fees.

·        Example: “Save 2% by paying with FedNow via Immediate Payments Solution. A 2% surcharge applies to credit card payments. Additional fees may apply for certain services.”

3.     Add Fee and Discount Line Items:

·        Add the “Cash Discount” item for FedNow payments.

·        Add the “Credit Card Surcharge” item for credit card payments.

·        Add the “Service Fee” item if applicable.

·        Add the “Convenience Fee” item if applicable.

4.     Subtotal Adjustments:

·        Adjust the subtotal based on the selected payment method.

4. Customer Communication

1.     Invoice Notes:

·        Clearly outline the payment options and associated fees on the invoice.

·        Example: “Pay with FedNow via Immediate Payments Solution and receive a 2% discount. Credit card payments will include a 2% surcharge. Additional fees apply for certain services or payment methods.”

2.     Email Communication:

·        When sending the invoice via email, include information about payment options and fees in the email body.

5. Monitoring and Optimization

1.     Review Transactions:

·        Regularly review transactions in QBO to ensure discounts and fees are applied correctly.

2.     Gather Feedback:

·        Collect customer feedback to understand their experience and make necessary adjustments.

3.     Compliance Check:

·        Ensure that your practices comply with state and federal regulations regarding surcharges, service fees, and convenience fees.

Example Implementation Scenarios

POS Example

1.     Invoice Creation:

·        Base price of an item: $100.

·        FedNow Payment: Apply a 2% “Cash Discount” (final price $98).

·        Credit Card Payment: Apply a 2% “Credit Card Surcharge” (final price $102).

·        Service Fee: Add $5 for a specific service.

·        Convenience Fee: Add $3 for using a non-standard payment method.

2.     Customer Communication:

·        Add a line item for the discount or surcharge on the invoice.

·        Include a note: “Save 2% by paying with FedNow via Immediate Payments Solution. A 2% surcharge applies to credit card payments.”

eCommerce Example

1.     Checkout Page:

·        Base price of a product: $100.

·        FedNow Payment: Automatically apply a 2% discount (final price $98).

·        Credit Card Payment: Automatically add a 2% surcharge (final price $102).

·        Additional Service Fee: $5.

·        Convenience Fee: $3.

2.     Customer Notice:

·        Clearly display the discount and surcharge information on the checkout page.

MOTO Example

1.     Order Form:

·        Include notes about payment

options, discounts, and fees. - Example: “Save 2% by paying with FedNow via Immediate Payments Solution. A 2% surcharge applies to credit card payments. Additional fees may apply for certain services.”

2.     Invoice Adjustment:

·        Manually adjust the final amount to reflect the discount or fees based on the payment method.

By integrating these strategies, businesses can leverage QuickBooks Online and Immediate Payments Solution to offer a variety of payment options, encouraging the use of FedNow for real-time payments while efficiently managing transaction costs through surcharges, service fees, and convenience fees.

Summary

Utilizing Immediate Payments Solution with FedNow for real-time payments in QuickBooks Online involves:

1.     Setting Up and Configuring:

·        Registering and integrating Immediate Payments Solution with QBO.

2.     Creating Fee and Discount Items:

·        Setting up items in QBO for cash discounts, surcharges, service fees, and convenience fees.

3.     Applying Fees and Discounts on Invoices:

·        Adding the appropriate discount and fee items on invoices.

·        Clearly communicating payment options and associated costs to customers.

4.     Customer Communication:

·        Using invoice notes and email communication to inform customers of their payment options and any related discounts or fees.

5.     Monitoring and Optimization:

·        Regularly reviewing transactions and gathering feedback to optimize the payment process.

·        Ensuring compliance with relevant regulations regarding surcharges and fees.

By following these steps, U.S. businesses can effectively implement real-time payment solutions through FedNow, enhancing payment efficiency and customer satisfaction.