Creating a recurring credit card payment helps you to charge your customers based on the frequency you create. If you are looking for the procedure to set up a recurring credit card payment, we have got you covered.
Once you set up the recurring payment in QuickBooks, filling the form with the proper customer list and item list management becomes very easy. QuickBooks can also manage the automatic invoice payment. In this article, we will teach you how to create a recurring credit card payment in QuickBooks. You can also choose to connect with the certified Intuit QuickBooks ProAdvisor to understand the complete guide to creating the recurring credit card payment in QuickBooks.
Steps To Create A Recurring Credit Card Payment In QuickBooks
We have covered all the necessary steps to create a recurring credit card payment in QuickBooks. But if in case, you are unable to create a recurring credit payment then you can read the QuickBooks user guide to do it properly.
Here are the given steps to create a recurring CC payment:
Step 1: To Begin With
Things to remember before you start with steps:
- Multiple processes are used by QuickBooks online for credit card recurring payments.
- QuickBooks notify you of the primary email address whenever the recurring payment is processed.
- Only credit cards are used for recurring payments in QB. Checks cannot be used for that.
- Recurring payments are processed at a non-qual or mid-qual rate. These transactions cannot be swiped.
The beginning of the procedure to set up the recurring credit card payment depends on your decision to use the QB or not.
In case you wish to connect the recurring payment to QB desktop,
- Select customers in QuickBooks and click on Credit Card Processing Activities.
- Select the Setup Recurring Payments option.
A signed authorization form from the customer is necessary to set the recurring credit card payment in QuickBooks. You can get this form in the Authorization Form link and give it to the customer to fill up and sign. You can use that form for your references.
Step 2: Generate The Recurring Credit Card Charges
- Go to the Processing Tools on the QB main menu and tap on Create a Recurring Charge. Else, you can also choose to click on the Create option in the Manage Recurring Payments window.
Step 3: Enter The Existing Customer Or Create A New One
Steps for location and choosing an existing customer:
- In the Customer field, insert the name till it gets displayed in the list.
- When you move to select the customer name and the QB is connected, you can see this customer list in the QuickBooks customer list. Otherwise, it maintains a running list of customers which you had created while creating the recurring payment.
Warning: A customer assigned to the foreign currency must not be selected as it can lead to accounting problems. Make sure you select the customer that is assigned to USD.
Steps To Create A New Customer:
- Tap on Add new and type in the information in the required fields. Refrain yourself from tapping on Add new options in case there are some recurring charges already associated with QB. Even if you do that, the records will not be downloaded properly.
- You have to add the customer first to QB and then choose it from the existing customers.
Based on the numbers of customers in the QB company file, the timeframe of the added customers varies every time.
Step 4: Insert The Name For The Recurring Payment
To understand the purpose of the recurring payment you create, it is important to name that.
It helps you and your customers to understand the charges. Whenever the payment is made, this name is provided in the email. In the notification sent to the customer, the mentioned items will not appear. Setting up the invoice options in QB is easy, and all the items will reflect in the invoice.
Step 5: Create The Payment Schedule
This step is necessary to set the dates on which your customer gets charged. You have set the start date, frequency, and end date to create the payment schedule.
Let us understand these factors one by one.
Start Date: This is the date when your customer is supposed to pay. It should be one day later, and it affects the schedule of future payments,
End Date: This date is the last date of the billing cycle. When the customer makes the payment after the end date, it does not get processed. You have the option to leave this field black if you don’t want to fill this information.
Frequency: This is the billing interval. Once you set the frequency, the customer has to make payments in this interval. For example, If the start date of the bill is 1st July and the frequency is one month, then the customer has to make the next payment on 1st August.
Step 6: Select An Invoicing Option
Credit card recurring payments are compatible with QB Company Files. It is possible to access the QB customer list and invoice items, although you have recurring payments post updates to QB automatically.
When you make recurring payment charges to your customer with the proper schedule. However, book management also should not be ignored. To do this, there are the following methods:
For every payment, recurring payment generates the invoices automatically. To do this,
- To have QuickBooks record the invoicing for every payment, click on the itemized list option.
- In the Search for Item box, insert the name of the items. You can select the items to add in the total. To map the sum of the total, recurring payments need item prices and sales tax amounts. If we provide that, recurring payments figures the total automatically. In QB, the total sum cannot be adjusted manually.
- The auto-generated invoices display all the items and prices. (This does not contain the email notifications).
- The only items that are available in the QB item list can be selected. If the item is not present on the list, you can select such items. In case you want to edit the items, you have to make changes in the QuickBooks directly.
When you want to manually create the invoice, or you have already created the invoice:
You can choose the Amount Only option if you are not generating an invoice for each payment separately. It is not possible to select the items with this option. You can just insert the total payment with the tax included. The Make Merchant Service Deposits section manages to record these payments in QuickBooks.
Step 7: Insert Credit Card Information
- In the billing information window, you can insert the credit card information that you want to use for the recurring payment.
- If that is the commercial card, check the This is a commercial card box and type in the Sales tax amount and the Customer accounting code in the designated fields.
Step 8: Send The Notification To The Customer
Tip: you can skip this step if you want. This is optional.
The email that is used while setting up the recurring charges can be used to send the notifications. To do this,
- Check the Notify My Customer That I Setup This Recurring Payment box.
- If you cannot see this option, you may have turned off the email notifications.
- Hit the next button once you check the box.
When the payment is made, the notification is sent to you and the customer. You have the option to disable the email notification.
Step 9: Review And Save The Credit Card Recurring Payment
Before you save the recurring payment, make sure that the entries satisfy the terms and the form that was signed by the customer.
Once you review it carefully, click on Edit to make changes and hit the submit button to save the changes.
Important Note: To allow QuickBooks to synchronize data, you have to rerun the QuickBooks. In most cases, the recurring charges occur at midnight of the payment date.
This article will guide you through creating the recurring payment in QuickBooks. The recurring payment in QuickBooks can sometimes lead to the following errors:
- QuickBooks Error OL-200, OL-202, OL-206, or OL-226
- QuickBooks Banking Error 108
- QuickBooks Banking Error 103 or 310
Hopefully, you find the article informative, and now you are able to create a recurring credit card payment in QuickBooks.