Paying a vendor through ACH in Quickbooks

@missymarykay55 

If you are using QBD 2022, you can utilize the Billpayment feature powered by Melio. They are developing a connector to integrate with QBD 2019-2021 and should be release at the end of Q1/2022. 

https://melio.grsm.io/quickbooks

You can also utilize other paid billing management apps to integrate with your QBD 2019-2021 for the being being.

Thank you

Above, You explained how to Send ACH payments to vendors for.  I have signed up for the Credit Card Processing and was approved last week.  When I try to "Pay a bill" my vendor's bill shows up, I check the box, My Business Account shows in the bottom right, but when I hit the down arrow the only options are Credit Card and Check.  Direct Deposit is not an option.  Can you tell me what I am doing wrong..  

Hello there, @jaredemoore.

In QuickBooks Desktop, you'll have the option to pay vendors through Direct Deposit. Before doing so, make sure you have an active payroll subscription.

Here's how:

1. Go to the Vendors menu.
2. Click Pay Bills.
3. Select the vendor you want to pay.
4. Click Direct Deposit by clicking the Method drop-down arrow in the Payment section.
5. Make sure to select the correct account for the payment and the date.
6. Click Pay Selected Bills.
7. Select Send Direct Deposit.
8. Hit Send.

For additional insights, you may also check out the article about how to pay bills through direct deposit: Pay bills for vendors through Direct Deposit.

However, if your payroll subscription is already activated and you still can't use direct deposit to pay your bills, I'd advise reaching our QuickBooks Payroll Support Team. They'll have access to your account and be able to check the status.

Also, to know your payroll subscription, you can refer to this link for reference: QuickBooks Payroll Services and Features for QuickBooks Desktop.

I've added these articles that will guide you on how to set up Direct Deposit for contractors and vendors:

• Set up direct deposit
• Manage direct deposit for independent contractors in QuickBooks Desktop Payroll
• Paying Independent Contractors using Direct Deposit

Let me know if you have further questions about direct deposit. I'm always here to assist you further. Have a great day.

@Maybelle_S  @MonicaM3 

Which is it, a payroll subscription or a merchant service account?

@MonicaM3 

Seems like you sent the OP down a rat-hole, telling him to get an Intuit merchant service account, when accepting credit cards from customers has about exactly nothing to do with sending ACH orders to vendors. Is that correct?

Hi there, @BigRedConsulting.

To process a direct deposit for vendors or contractors in QuickBooks Desktop (QBDT), the customer needs to ensure that their QuickBooks Desktop Payroll is active. Also, they can set up direct deposit using QBDT Payroll Basic, Standard, and enhanced as well as the Assisted version of QBDT payroll.

For more information, see this article: Set up and manage direct deposit for your contractors.

Also, If the customer wants to continue without signing up for a payroll subscription, they'll want to check this page: Contractor Payments.

In addition, I do agree with you, BRC. Since the merchant services are for receiving customer payments only, while the ACH paying through direct deposit is for paying the vendors.

@Kurt_M 

OK, so if I understand, neither the Intuit merchant service nor a payroll service is required.  And, the merchant service won't even get you contractor payments.

Instead, the customer can pay $15 a month to pay up to 20 contractors using the "Contractor Payments" service.

Someone should tell @Maybelle_S  and @MonicaM3 before they send more customers down a rat-hole with incorrect statements.

@missymarykay55 

RE: "We have a sub contractor that we pay every other week. He wants his money to be directly deposited into his bank account by ACH."

If your bank accepts NACHA files, you can use our BRC Direct Deposit File Creator  to send ACH/DD orders to vendors (and employees), and it will be a lot less expensive than the QuickBooks service to send vendor payments.

Your Assumption is correct.  I have a few independent Contractors who want paid by Direct Deposit each month.  It would be a handful of times per month.  I don't need payroll for this business account.  How do I get signed up for "Contractor Payments"?

Hi, jaredemoore.

QuickBooks has a standalone subscription for Contractor Payments. I'm here to share some information about it.

With the Contractor Payments subscription, you can pay contractors fast, e-file 1099s, and manage your books in one place. To review what other things you can do, feel free to check this link: Find the plan that’s right for you.

I've also added this reference on how you can create and file 1099s: Prepare and file your Federal 1099s.

I'm just a post-away if you have concerns with preparing and filing the 1099 forms.

@BigRedConsulting Thank you for calling out the misinformation.  I've tried to find an automated ACH payment method directly from QB and it's like splitting an atom for them.  I don't appreciate @jaredemoore and @missymarykay55 being told they need added services that are unnecessary.  From what I read, QB is requiring a two day advance for payments to go through which is ridiculous.  We are now using a very effective and affordable product called ACH Universal by Treasury Software.  It interfaces with QB when I pay bills to create a NACHA file, which I upload to our bank.  It's simple and they have great support if needed. My only complaint is the lack of credit details when you take a vendor credit on a bill payment.  Until QB comes up with a simple, affordable and QUICK (it is in your product name, after all) ACH vendor payment method, I'll stick with our third party product.  But don't have QB users pay for services they don't need.  Very uncool.  

Hello @missymarykay55/MonicaM3

Are the steps to setup ACH the same for the online version of QBs?

Hey there, vicki26. Let me provide some steps for setting up your ACH in QuickBooks Online (QBO). 

Before setting up your ACH in QBO, make sure you have a subscription either in QuickBooks Payments or QuickBooks Bill Pay. Know that QuickBooks Payments is for the Customers and Bill Pay is for the Vendor. Right after, you'll have to link these to QBO in your Settings. 

Here's how: 

1. Go to the Gear icon located in the upper right corner. 
2. Under the Your Company columns, select Account and Settings. 
3. Click the Payments section. 
4. Within the Payments tab, you'll see the plan you've subscribed to, click Connect. 
5. Follow the on-screen instructions. 

Furthermore, you can refer to this material in case you want to process an ACH bank transfer for your customers: Process an ACH bank transfer from a customer in QuickBooks Online. 

For further assistance, please enter it in the comment section. Have a nice day and stay safe. 

@vicki26 

Do you need to pay your vendors or accept the payment from your customer?

I need to pay a vendor for their services via ACH

@vicki26 

You can signup for a free Melio account to integrate with QBO and pay your contractors/vendors with ACH for free.

https://affiliates.meliopayments.com/quickbooks

You can also get $100 cashback to pay the first bill.

https://affiliates.meliopayments.com/cashback

I am trying to pay some vendors thru QB Payments / Direct Deposits.  the limits are not high enough, how can I get my limits raised? I get a note exceeds the current dollar limit for a single payee.. 

@Melissa02575 

If your bank offers NACHA file processing, use our BRC Direct Deposit File Creator to create NACHA files for employee and vendors and submit it to your bank directly.

Let me route you to appropriate support, Melissa. 

I recommend contacting our payment support team. They have the resources and tools to access your account, review your current limit, and assist you in submitting a request. 

Here's how: 

1. Visit this website: https://public-consumer-chat.app.intuit.com/app/ccs/consumer?experienceId=sbsegUsDtCorePcsPayments&_....
2. Key in your personal information. 
3. From the What can we help you with today? field, and enter your concern. 
4. Click the Start Chart blue button.  

The payments support service is available M-F, 6 AM to 6 PM PT. 

Additionally, check out this article to learn more regarding paying your independent contractors via direct deposit: Set up and manage direct deposit for your contractors. 

Feel free to post here in the Community space if you have any queries about managing your vendors. Take care!

@Melissa02575 

Do you have QB Online or QB Desktop?

Desktop.. I have used DD for payroll for years, I thought I would try the vendor DD payments for vendors. Great concept.. but only work for small amounts..

Hi there, Melissa02575.

I'm here to help in paying your vendor via direct deposit.

If you want to increase your direct deposit security limit in QuickBooks when paying your vendor, you can easily submit an online request. However, you might be required to provide additional documentation like bank statements, which can be uploaded to the request form. 

Usually, the requests are processed within 2 business days, and the results will be emailed to you. In some cases, you may also need to provide more information such as bank statements this is for us to know your average historical balance to make sure your account is sufficiently funded for the amounts you're requesting.

For more details about direct deposit limits, you can visit this article: Get help if you're over a direct deposit limit in QuickBooks Payroll.

For your future reference, you can always check this article to guide you in changing payroll bank accounts for direct deposit: Change your payroll bank account.

Feel free to hit that Reply button if you have additional questions when processing direct deposit. Have a great day ahead.

Does your NACHA file creator integrate with QBDT and does it give details on credits taken against vendor invoices?  This is a gap with Treasury Software's product and it's frustrating that we have to go back and send emails with credit details.  It defeats the purpose of creating an easy NACHA file.