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.
- Sign in to your QuickBooks Online account.
- 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.
- 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.)
- Select Enter vendor's bank account info.
- Select Next.
- Enter the vendor's bank account information.
- 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.
There are three ways to invite vendors. They are the following: