QuickBooks Payment Processing Charges more for AutoPay

Welcome to the Community, Diane. I can see how beneficial it is to your business and your client to have the option to auto-deduct their bank account when paying invoices online. QuickBooks Online (QBO) values your account security and privacy. 

Let me share some information that will help you understand more about the fees for QuickBooks Payments. 

The amount you'll pay usually varies, and it depends on how you process the transaction. The transaction fees will depend on whether you process the card through swipe (2.4%), invoice (2.9%), or key (3.4%), plus a flat $0.25 fee per transaction. 

If you'd like to check if Autopay is set up for an invoice, view the Activity Tracker. Let me show you how:

1. Go to Get paid & pay and select Invoices. 
2. Find the invoice you wish to check for payment status.
3. Select the status field of that invoice line to bring up the activity tracker panel.

When you see the Autopay Scheduled status under the invoice activity section, then you know your customer set up Autopay. 

There will be no fees for the customers when they pay. This article can provide a much clearer view regarding the charges: What are the fees for QuickBooks Payments?

In case you need assistance with your QuickBooks Payments account, I recommend contacting our Merchant Services Team.

You can also check the article about the deposit times if you're expecting payment and detailed steps on setting up automatic credit card payments for recurring invoices:

• Find out when QuickBooks Payments deposits customer payments.
• Set up Autopay for recurring invoices in QuickBooks Online.

If you need further assistance managing your invoices in QBO, let me know in your reply. I’ll be around ready to help you. Keep safe and take care! 

LollyNico_C, none of your response clarifies the issue I have with the Payment Processing Fee.

Please define credit card processing via "invoice" (2.9% fee) and "key" (3.4% fee).

I interpreted it as:  if the customer pays an electronic invoice and keys in their credit card information (after following the link on the invoice) it is considered "invoice" and if the merchant keys in the credit card information it is considered "key".

When I send out an invoice and a customer pays the invoice by clicking the link and entering their credit card information, I'm charged the "invoice" fee (2.9%) with one exception. 

Please explain why when a customer clicks the link on an invoice and signs up for autopay (to do this they are required to log into their own intuit account), the payments are then considered "key" and are charged 3.4% fee.

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I have this same question and the call center gives the same written explanation above, that DOES NOT answer the question. I haven't signed up for QB payments yet because I need to know - when is a payment considered 'keyed'. If I've created an invoice, I expect to be charged the 'invoiced' fee. can someone please answer these questions only.

1. WHEN IS A PAYMENT CONSIDERED 'KEYED'

2. WHEN IS A PAYMENT CONSIDERED 'ONLINE INVOICE'

All I can tell you is that when I create a recurring invoice, the customer is able to set up an auto-payment for those invoices.  To set that up the customer logs into their intuit account and stores their payment information in their account.  The fee the QuickBooks Payment system charges me for processing those autopayments is at the "keyed" rate.  The recurring invoices that we send out that don't opt for auto payment as well as the one-time invoices we send out are charged the "online invoices" fee.

When I talk the "experts", I'm told that when an autopayment is created it becomes "keyed".  To us it is worth the extra fee to offer autopay to our customers.  It is also less hassle for us as the customers who don't have autopay set up sometimes forget to pay and we have to send reminders.  But I would like Quickbooks to document this because everything I've read on QuickBooks sites has said that there is no additional fee for autopay and this is a LIE.

Hello, Diane. It's my pleasure to see you again in the Community forum. The Community is always here to provide you with the information you need.

When you send a pay-enabled invoice with a button enabling your clients to pay online using a credit card, debit card, bank transfer, Apple Pay, PayPal, or Venmo, it is an online invoice payment. When you use the QuickBooks GoPayment mobile app and card reader to accept credit or debit cards in person via tap, dip, swipe, or digital wallet on your customer device, the payment is keyed. 

You can visit these articles for more information about the rates per transaction and the different kinds of payments:

• QuickBooks Payments
• Credit card processing
• What are the fees for QuickBooks Payments?

Feel free to get back to us if there is anything else you need to clarify with any QuickBooks-related concerns. You can reach out by posting in our Community forum again. Wishing you all the best, megarooter!

SirielJeaB - 

When you send a pay-enabled invoice with a button enabling your clients to pay online using a credit card, debit card, bank transfer, Apple Pay, PayPal, or Venmo, it is an online invoice payment. - EXCEPT when the customer chooses to AutoPay a pay-enabled recurring invoice, it is considered keyed.  It doesn't make sense to me, but this is what we are being charged.  And when I chat with QuickBooks Payment people to see why we are being charged more for the autopay - they say that when the customer does autopay it becomes a keyed transaction.

If this is not the case - please let the payments people know because they are over charging us.

It is here:  Set up Autopay for recurring invoices in QuickBooks Online (intuit.com)

Right under the video and before Step 1 states "The fees for Autopay are the same as for any payments made through QuickBooks Payments."

This statement is not true. If it is meant to be true, then QuickBooks Payments needs to fix their processing software to make it true.  If it is not true, then the statement should be changed to acknowledge that auotpay will be charged at the higher "keyed" rate (an extra 0.5% for credit cards).

We have recurring invoices for 2 customers for the same amount (both set up the way the link I referenced describes).  One has opted for autopay and the other one has not.  We are charged more fees for the customer with autopay.  We are charged the higher "keyed" rate for the autopay customer and the QuickBooks Payment help system seems to be standing firm that the autopay makes it a "keyed" transaction.  

So who is right?  The support article referenced above or QuickBooks Payment Help System and the way it is actually being charged?