Set up and Process ACH Payment Through QuickBooks Online 

ACH Payment is a network that allows customers to process payments to vendors, make direct deposits, and clear sales receipts or invoices efficiently. It eliminates paperwork and frequent bank visits, saving valuable time. With the recipient’s permission, you can make ACH payments directly in QuickBooks Online by securely saving their account details for future use.

If you’re wondering how to set up and process ACH payments through QuickBooks—whether through recurring payments or one-time bank transfers—this guide will walk you through each step. Let’s explore how ACH payments work in detail.

What is ACH Payment? 

An ACH is a network that enables you to make various types of electronic payments between banks within the United States. Once set up, you can send and receive ACH payments in QuickBooks by creating recurring customer invoices or scheduling vendor payments via bank transfer. ACH payments are processed and regulated by the National Automated Clearing House Association (Nacha).

Set up Autopay for Recurring Invoices

Do you regularly receive products or services from your vendor? To simplify payments in QuickBooks Online, you can set up AutoPay for recurring invoices, ensuring your ACH payments are processed automatically and on time—no more worrying about late payments.

1. Set up recurring invoices

If you have already set up recurring invoices, move to Step 2. 

If you don’t have the recurring invoices set up, follow the steps below. 

• Create an invoice and choose Make recurring. You can also create using the recurring template.
• Go to Interval. 
• Choose the frequency or how often the invoices should recur. 

Note: Remember that Autopay isn’t available for recurring invoices with a daily interval.

• Enter the start and end date of your recurring invoice. 
• Enter the rest of the details for your invoice and select Save template. 
• If you already have a recurring invoice setup, you don’t need to create a new one. 

Important: After Autopay is set up, you can edit recurring templates as needed. However, Autopay will be cancelled if you modify any of the following fields.

• Total amount
• Frequency
• Terms
• Payment options
• Email address
• Customer name

If cancelled, your customer will receive an email notifying them of future Autopay cancellations.

2. Help your customers set up Autopay

Once set up for recurring invoices and one is sent, your customers will receive the invoice email on time as usual. They can also set up autopay from their end.

Below are some of the requirements your customer must meet when setting up AutoPay.

1. Autopay can only be used for the full invoice amount. If your customer edits the invoice amount, the Autopay option disappears. 
2. To use Autopay, your customer needs an Intuit account. If they don’t have one, they’ll need to create an account.

Here’s how your customer can set up Autopay:

• Open the invoice and choose Set up autopay to begin enrollment.
• Sign in using your Intuit user ID (also used for TurboTax or Mint).
• Ensure the Autopay box is checked, and review the payment frequency and start date.
• When ready, select Autopay to pay the current invoice. A confirmation email will be sent once Autopay is active.

3. Check the Autopay status of your customer

Verify if the AutoPay setup for an invoice is successful in the Activity Tracker with the steps below:  

Follow this link to complete the steps in the product

• Look for the invoice you want to check for payment status. 
• Select the Status of that invoice to open and check the activity tracker panel.

If your customer is successful in setting up Autopay, the Autopay Scheduled status will be updated under the Invoices activity section. 

Process an ACH Bank Transfer from a Customer

You can also process ACH payments through QuickBooks for your customers’ sales receipts or invoices in QuickBooks Online. Follow the steps below to get rid of paychecks and bank with ease:

1. Select the transaction to receive payment

Add your bank transfer payments to invoices or sales receipts. 

a. Sales receipt or invoice

• Click on + New.
• Choose Receive Payment or Sales Receipt.
• Under Customer, choose your customer name. 
• Now, select Check or QuickBooks Payment – Bank from the Payment method drop-down menu.

b. Recurring sales receipt 

ACH payment will be processed with the sales receipt on the next scheduled charge date. Here’s how it works: 

• Go to the Settings menu. 
• Choose Recurring Transactions.
• From the list of transactions, look for your customer’s recurring sales receipt. 
• Select Edit.
• Choose Check or QuickBooks Payment – Bank under Payment method.

2. Enter your customer’s bank info

Enter all the required bank information of your customer:

a. Sales Receipt or Invoice

• Click on Enter Bank info.
• Now, enter your customer’s Account Number, Account Type, Routing Number, and Name. 
• Choose Use this account information in the future.

Note: Always obtain the customer’s consent before saving their payment details. You can print an authorisation form for the customer to complete and sign.

b. Recurring sales receipt

• Hit Enter Bank info.
• Enter your customer’s Account Number, Account Type, Routing Number, and Name
• Finally, choose Use this account information in the future.

3. Process payment 

Finally, process the payment: 

• Select I have authorization and would like to process this transaction on your transaction form.
• Review your transaction. 
• Click on Save and send.
• Make the required changes to the email message to your customer and then select Send and close.

Note: Manually entered ACH payments may face delays from additional security reviews. Using Pay-enabled invoices for ACH collections helps minimize payment processing risks.

Conclusion 

Finally, we’ve reached the end of this blog, where we discussed how to set up autopay for recurring payments and process ACH payments through QuickBooks Online. Following these steps will help you manage invoices and vendor payments efficiently.

For further assistance, contact QuickBooks ProAdvisor at (866) 500-0076 and talk to an expert today!

Frequently Asked Questions 

How to do an ACH payment in QuickBooks?

To do an ACH payment in QuickBooks, you can either pay a vendor by using the “Bill Pay” feature in QuickBooks Online, which allows you to pay via bank transfer, or accept payments from a customer by setting up QuickBooks Payments to accept bank transfers. 

Can I accept ACH payments through QuickBooks?

Yes, you can accept ACH payments through QuickBooks by using QuickBooks Payments, which allows you to receive funds directly from customer bank accounts via electronic transfer

What does ACH mean in QuickBooks?

In QuickBooks, ACH stands for Automated Clearing House, which refers to a network for electronic bank-to-bank transfers in the U.S. It’s a system QuickBooks uses to process electronic payments, such as direct deposit payroll, customer payments, and recurring bill payments made via e-check.

Does QuickBooks have an ACH form?

No, QuickBooks doesn’t have a built-in ACH form, but it does allow you to collect the necessary information and process ACH payments.