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PayPal on e-Invoices FAQs

NOTE (8/15/18): The PayPal Beta integration was recently discontinued. QBO accounts that were started before 2018 were 'grandfathered' into the Beta and may be able to use it as an acceptable payment option when sending invoices to customers. However, new QBO accounts are not able to use this feature and Merchant Serves are no longer offering accepting payments via PayPal.

QuickBooks is pleased to announce our beta program for PayPal on e-Invoices. When you send an invoice and choose to accept credit cards, the new PayPal feature gives your customers the option to pay you through their PayPal account. The objective of our beta program is to collect customer feedback before this feature is released.

How do I begin accepting PayPal payments?

All you need is a QuickBooks Payments account. You can start from the Get Set Up link at the top and only takes a few minutes to fill out some information about your business. Once your account is approved, you'll be able to accept PayPal, credit cards and bank transfers.

How do my customers pay me with PayPal?

Create an invoice first, then send it to your customers. When they open it from their email accounts, they'll have the opportunity to select PayPal as their payment option. They'll use their PayPal credentials to sign into their account and then select their payment method.

How do I know when someone has paid me?

You'll receive an email confirming that the payment and the invoice will be marked as paid in QuickBooks, just like other payment methods we support.

Where can I see the status of PayPal transactions?

You can view the status of your PayPal transactions in the Merchant Service Center.

How do I know a PayPal payment was deposited?

In the Merchant Service Center, you'll see PayPal, credit card payments and bank transfers included together in a single deposit every day.

What fees are charged if a customer pays an invoice with PayPal?

If a customer pays an invoice with PayPal and your plan includes Invoice pricing, the Card-Invoiced rate will be applied.  If your plan does not include Invoice pricing, the Card-Keyed rate will be applied. If you are on a 3-tiered plan, the Non-Qualified rate will be applied.

How long does it take for a PayPal payment to be deposited?

Your money will be deposited in 2 business days if the transaction is made before 3 pm Pacific Time. For example, if your customer pays on Wednesday before 3 pm, then you'll get the money on Friday.

How do I reverse a PayPal payment?

You can reverse a PayPal payment made by your customer by voiding the receive payment or reversing the payment in the Merchant Service Center.

Would Refund transaction fees still apply?

Yes, you'll be charged refund fees, based on your pricing agreement.

I use PayPal to get paid already. How do I connect my PayPal account to QuickBooks?

All you need is a QuickBooks Payments account. One place to start is from the " Get Set Up" link at the top of a new invoice. It only takes a few minutes to fill out some information about your business. Once your account is approved, you'll be able to accept PayPal, credit cards and bank transfers automatically.

Will PayPal hold my funds? What do I do?

PayPal/ Intuit may hold your funds when we see activity that seems unusual or suspicious. This is a common industry practice intended to help protect both you and your customers. If any such circumstances arise, we(Intuit) work with PayPal to resolve the holds. An Intuit agent will get in touch with you if there is any need to provide supporting documentation.

There are three reasons why Intuit/PayPal would hold the money.

  • You are a new seller - Intuit will work with PayPal to resolve this. There is no action needed from you.
  • Your customers indicated issues with your business performance. This is based on percentage of refunds, chargebacks and other disputes compared to your healthy charge volume. Intuit would need supporting documentation to help alleviate your business performance.
  • You have higher than normal risk. You may be selling what we consider as high-risk items, or we observe an unusual spike in your charge volume. Intuit would need supporting documentation to help understand the abnormal activity.

How do I dispute a PayPal transaction?

As a merchant, you shouldn't need to dispute a PayPal transaction. If you have unauthorized activity on your account, you would follow the same process regardless of payment type.

How do I handle a chargeback?

We'll notify you if your customer files a chargeback for a PayPal or credit card payment, and we'll let you know the next steps.

I already have a PayPal account, can I use it?

No, you can't use your own PayPal account. You need a QuickBooks Payments account to accept online payments for invoices, including PayPal payments.

If my customers pay me with PayPal, will my books auto- update?

Yes. A receive payment option will be created to record the payment. Once the money is deposited in your bank account, you'll see it automatically reconciled.

Why are my fees higher than what I would pay PayPal?

Our fees include all QuickBooks Payments account services that we offer, not just the ability to accept PayPal.

What happens if I get declined for my QuickBooks Payments application? Can I still use my PayPal account?

Unfortunately, you can't use your own PayPal account within QuickBooks, even if your application for a QuickBooks Payments account isn't approved.

Where is my money deposited if my customer pays with PayPal? Do I need to have a PayPal account?

You don't need a PayPal account. We'll deposit the funds directly into your bank account along with your credit card and bank transfer transactions.

If the merchant's customer, have a wallet in my PayPal account. Can I pay with payment methods other than my PayPal balance?

Yes, but you can't pay with an eCheck (an asynchronous ACH transfer that takes 3-5 days to process). You can pay with iACH (instant ACH), which is similar to a debit card. This requires that the payor will need an alternate funding source in case the ACH fails.

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