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Intuit

Set up a bank transfer to a vendor

Learn how to pay a vendor electronically.

By default, all vendors are setup to be paid via check. If you wish to pay a vendor by Bank Transfer (ePayment / ACH), you'll need to set it up by either entering the vendors bank account manually or inviting the vendor. In this article, we'll show you how to do both.

Note:This feature is only available to users with Online Bill Pay in QuickBooks Online. If you wish to sign-up for Online Bill Pay, please visit the Online Bill Pay page.

 

 

Add the vendor's bank account

To add the vendor's bank account, follow these steps.

  1. Sign in to your QuickBooks Online account.
  2. Navigate to the Pay bills online page by the following:
    • Select + New. Then Pay Bills Online.
    • Selecting the Bill Pay Online dashboard widget.
    • Selecting the Expense tab, then Pay Bills Online.
  3. To set up a vendor with open bills, select Set up Bank Transfers within the same line as the Payee. (Note: To set up a vendor before there are open bills select Set up vendors for bank transfers. You'll need the account number for the vendor.)
Set up bank transfers in Bill Pay Online in QuickBooks
  1. Select Enter vendor's bank account info.
  2. Select Next.

  3. Enter the vendor's bank account information.
  4. Select Save.

Things to know:

  • We'll initiate a small test deposit of a penny into your vendor's bank account. This is done to verify the bank account can receive payments. (Note: If the test deposit is not successful, the bank account entry will be invalidated. A new bank account entry will need to be made for the vendor.)
  • After manually adding a vendor's bank account, the earliest process date that can be selected is 2 business days after the bank account was added. This is to ensure the test deposit is successful. (Note: A federal holiday will add one additional day to processing.)
  • If the test deposit is not successful and the bank account is invalidated, the payment will still process. The payment will go out as a check payment.
  • If a payment needs to be made immediately, schedule a check payment before adding the vendor's bank account.

Invite vendors

There are three ways to invite vendors. They are the following:

  1. Sign in to your QuickBooks Online account.
  2. Navigate to the Pay bills online page by the following:
    • Select + New. Then Pay Bills Online.
    • Selecting the Bill Pay Online dashboard widget.
    • Selecting the Expense tab, then Pay Bills Online.
  3. To set up a vendor with open bills, select Set up Bank Transfers within the same line as the Payee.
Set up bank transfers in Bill Pay Online in QuickBooks
  1. Select Invite vendor to receive bank transfers.
  2. Select Next.

  3. Enter the Vendor's email address if not populated already.
  4. Customize the Message to vendor by choosing the edit icon (if applicable).
  5. Select Send invite.

If the vendor is in the Bill.com network and already has an account to receive payments, we'll display suggested matches:

Review business information for bank transfers in QuickBooks Online

 

For large biller vendors (Utility, Insurance, Power, Water companies, etc.), we'll show you matches based on payment address and account number.

Match vendors for bank transfers in QuickBooks Online

To see all vendors and set them up before there are open bills for them select the Manage Vendors tab.

View all vendors and opens bills in Manage Vendors tab of QuickBooks Online
  1. Sign in to your QuickBooks Online account.
  2. Navigate to the Pay bills online page by the following:
    • Select + New. Then Pay Bills Online.
    • Selecting the Bill Pay Online dashboard widget.
    • Selecting the Expense tab, then Pay Bills Online.
  3. Select Set up multiple vendors for bank transfers.
  4. Select the vendors to invite.
  5. Enter email addresses if not populated already.
  6. Customize the Message to vendor by clicking on Customize invitation message (if applicable).
  7. Select Send invite(s).
Send batch invitations to vendors in QuickBooks Online

Things to know:

  • The vendor will need to accept your invite. Then they will need to create a free Receivables account and add their bank account. After this is done, you can make bank transfers (ePayments) to them.
  • To view an example of the Invitation email, please see Online Bill Pay - Invitation for vendor.

Related information

Online Bill Pay - Adding a Private Vendor
Online Bill Pay - Vendor Invite Widget

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