Navigating the intricacies of Intuit merchant accounts in QuickBooks can be daunting, especially when unexpected fees pile up. One such fee that often catches businesses off guard is the instant credit fee. But don’t worry—this guide will break down everything you need to know about this fee, how to set it up if you choose to, and, most importantly, how to avoid it.
What is the Instant Credit Fee?
The instant credit fee is a 1.75% charge applied to transactions when funds are transferred immediately into your account. While the convenience of instant access to your money can be appealing, these fees can quickly add up, cutting into your profits.
How to set up Instant Credit in Intuit
Ready to take control of your QuickBooks Payments account? Here’s how you can set up instant credit and manage your payments efficiently:
Go to Deposits:
Access your deposit accounts by navigating to the gear icon, selecting settings, and then going to payments.
Set Deposit Speed:
Click on 'deposit speed' to set your schedule for instant payments.
You can schedule instant payments up to six times a day. For instance, if you need instant credits processed on Mondays, you can set it specifically for that day.
Configure Your Schedule:
Choose the days and times you want instant payments in the deposit speed settings.
Save the schedule to ensure your settings are applied.
Example scenario
Imagine this: You're expecting a payment of $281.25. Following the steps mentioned above, you can schedule this payment for instant credit without incurring any charges, provided you meet the criteria set in your deposit schedule. This saves you money and ensures you have quick access to your funds.
Avoiding the Instant Credit Fee
If you'd rather keep that 1.75% in your pocket, here are some tips to avoid the instant credit fee:
Opt for standard deposits, which typically take 1-2 business days but come without the extra charge.
Carefully manage your cash flow to minimize the need for instant payments.
Final thoughts
Understanding and managing instant credit fees in QuickBooks Payments can save you significant money. By setting up your account correctly and planning your transactions, you can avoid unnecessary charges while ensuring your funds are available when needed.
For more tips and detailed guides on managing your finances, keep an eye on our blog or contact us at Peak Advisers.
Read More: Don’t let your business get overcharged for credit card transaction fees