QuickBooks HelpQuickBooksHelpIntuit

Subscription Payments Overview

by Intuit Updated 3 months ago

Learn about Subscription Payments in QuickBooks Online.

In QuickBooks Online, you can connect QuickBooks Payments to process credit card payments, send payment links to customers, and use Auto Pay with recurring invoices. You can now setup Subscription Payments to auto-charge your customers monthly.

Here are some frequently asked questions about Subscription payments.

Subscription payments ‌automatically charge your customers on a monthly basis. When you create a subscription, your customer receives an email from QuickBooks to review the details. They enter their preferred payment information and accept the subscription. They’re automatically charged every month for the subscription and sent a receipt by email.

If you regularly charge customers for the same services on a monthly basis, subscriptions can help you get paid faster with automatic monthly charges. And you save time, because you don’t need to create and send a monthly invoice.

To create a subscription: 

  1. Go to Sales
  2. Select Subscriptions.
  3. Select create subscription.

No, at this time, invoices and estimates can’t be converted into subscriptions.

No, at this time, subscriptions can’t be duplicated.

QuickBooks Payments rates apply to each payment made under a subscription plan. There are no separate costs to create or setup a subscription.

Subscriptions and recurring invoices are similar but have some key differences.

Recurring InvoicesSubscriptions
Your customers are automatically invoiced regularly (Daily, Weekly, Monthly, or Yearly) for services you have already provided. Your customers make payments automatically on a monthly basis.
Your customers can choose to provide their payment info and set up autopay through QuickBooks. Your customers choose whether to use autopay and be charged automatically. If they don’t set up autopay, they won't be charged automatically.When a customer accepts your subscription request, they’re prompted to enter their payment info and will be charged automatically.
You can cancel recurring invoices, but your customer can’t. You and your customers are able to cancel a subscription.

In both cases, you never have to manually enter your customer’s payment info.

Active: the subscription consent is accepted by your customer and payments are successful.

Canceled: you or your customer has canceled the subscription.

Completed: Subscription was active and has passed the end date that was set by the merchant when the subscription was created.

Not paid: Current billing period hasn't received payment. A new payment method is required to return the subscription to Active status.

Not accepted: Subscription consent wasn’t accepted by the expiration date (start date set by merchant, or 30 days after Charge Immediate)

Pending: Subscription is created but not accepted by your customer and the subscription hasn’t expired yet.

Payments fail when there’s an expired or invalid payment method. If the subscription is already activated when the payment fails, the invoice is created in your QuickBooks Online account but it isn't marked as paid. If you don’t update the payment method by the next charge date, the subscription is canceled.

Customers manage their payment info with the link in the subscription confirmation email.

  • Credit card
  • ACH
  • PayPal and Venmo aren’t currently supported

You and your customer have the option to cancel an active subscription.

You can only cancel an active subscription. 

  1. Open a subscription. 
  2. Select View/Edit, then select Cancel.
QuickBooks Payments

Sign in now for personalized help

See articles customized for your product and join our large community of QuickBooks users.

More like this