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QuickBooks Merchant Service FAQ


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Processing a Credit Card
What are steps or requirements for processing a credit card?
  1. Customer Checkout - Quantities, total dollar amounts, sales tax, and shipping are calculated.
  2. Customer Authentication or Imprint - Generally, card transactions occur in one of two situations - card present or card not present.
    1. Card Present - A card is presented for payment by the customer and swiped through a point of sale device. Signatures and identification are sometimes verified.
    2. Card Not Present - Occurring over the Internet, via telephone, or mail order, the credit card transaction occurs without the customer being physically present. To authenticate the transaction additional information is verified (AVS & CVC)
  3. Authorization (Approve, Decline, or Call Center) - The payments processor verifies that the account is in good standing, if funds are available, and/or if there has been unusual or erratic spending activity on the card. An approval authorization is granted if these conditions are satisfied.
  4. Sale/Batch Settlement - At the end of the day, the merchant is responsible for batching all sales taken throughout the day. If there are 100 transaction, or just one, a single deposit will be sent to the payment processor and associated with each batch.
  5. Payment to Merchant - Within 2 or 3 business days of accepting the payment and settling their batch, the merchant will receive a deposit for the batch minus any nominal processing fees.

When will the money be in my bank account?
It generally takes 2-3 business days after a batch is closed to receive the deposit into your checking account. NOTE: Business days are Monday through Friday, excluding holidays.

When are the monthly fees debited from my checking account?
Monthly fees are debited between the 1st and 5th day of the month and will include fees that occurred in the month before. For example, January's statement fees will be debited between February 1st - 5th.

What types of credit cards can I accept?
Intuit Payment Solutions is a full service merchant service provider that supports all credit card types for most businesses; however, separate approval may apply. These cards include Visa, MasterCard, American Express, Discover® Network, Diners Club/Carte Blanche, JCB, Debit Cards, ATMs, Electronic Benefits Transfer (EBT), Gift Loyalty Cards as well as Check Verification services.

How long will it take to get my account up and running?
Intuit Payment Solutions approves most applications within 24-48 hours. Once you have been approved you can set up your account quickly and begin processing.

How do I get an account? What business information is needed to open an account?
  1. Complete a merchant application. Since a merchant account is a financial service involving the exchange of funds, you will need to complete a simple application. The application information includes:
    • Name, address, and telephone
    • Checking account (for funds to be deposited/withdrawn)
    • Federal Tax ID (for Corporations, LLCs, and Partnerships), and your Social Security number (for Sole proprietorships)
    • Type of business
    • Credit card processing history, if applicable
  2. We'll review your application. Our underwriters review your application for credit and type of business. Most applications are generally approved. However, certain business types may not be accepted.
  3. Setup: Once you are approved, we will assist you with setting up your processing equipment or processing software (if you're using a PC) and run a test transaction. You're then ready to process!

Can I add tips/gratuity to a sale?
Yes - for most service based businesses; it requires a special setting in the point of sale device though so please request tip/gratuity setting upon application.

How long does it take to approve a transaction?
Authorization of a transaction occurs within seconds.

What is a transaction?
A transaction is an agreement between a buyer and seller to transfer assets (or "funds") as payment for goods or services received by the buyer. Transactions include Card-Present or "Swiped," and Card-Not-Present.
  • A card-present, swiped-transaction occurs when the merchant swipes the credit card through a terminal or card reader and then hands the card back to the customer. These transactions have the lowest discount rates because the cardholder and the card are both present at the point of sale.
  • A card-not-present transaction occurs when the merchant does not physically swipe the customer's card. These types of transactions have higher discount rates because the consumer is generally not present and does not sign a sales receipt.
There are two forms of card-not-present transactions:
  • Keyed-transactions, which are manually keyed-in by the merchant using the customer's card number
  • Internet transactions, which are processed automatically through the merchant's online Web store.
Why do I need a manual imprinter? When should I use a manual imprinter?
A manual imprinter should be used when one of the following events occur:
  • The point-of-sale terminal failed to read the magnetic stripe on the credit card.
  • The point-of-sale machine is not operational.
  • The proper authorization was not obtained or a voice authorization was obtained.
  • The credit card number is manually entered and/or keyed into the point-of-sale terminal.
  • An electronic printer was not used to print a receipt as a record of the transaction.
What are sales drafts?
A sales draft provides evidence of the transaction. It can be an impression of card's account number, expiration, and cardholder's name, dollar amount, and signature manually obtained from a card through the use of an imprinter. Or it can be electronically obtained by swiping a card through a terminal and printing a part of the card's account number, expiration, and cardholder's name, dollar amount, and signature.
Processing Debit-Cards
What is a debit card?
As opposed to credit cards, which extend a line of credit to a user, debit cards are directly linked to a user's checking/savings/money market account.

Debit cards are processed in two different ways. A "PIN-based" debit requires the customer to endorse the payment by submitting his Personal Identification Number (PIN) at the point of sale, whereas a "Signature-based" debit does not require entering a PIN.
  • PIN-based Debit
    Because the customer enters his PIN code, the likelihood of fraud is greatly reduced. Therefore, merchants are generally charged a lower fee for signature-based credit card fees.
  • Signature-Based Debit Signature-based debit cards have a Visa or MasterCard logo and are processed like a credit card, meaning no PIN is entered. The merchant generally incurs the same discount rates and fees as credit cards. Merchants can accept signature-based payments via the Internet, telephone, or via a retail terminal.
Processing Credit Cards on the Internet
I have/want an e-commerce website - how does Internet processing work?
Internet payments occur over a multi-step process.

  1. Merchant Website - This could be any ecommerce site, Internet store.
  2. (Shopping) Cart - A like a shopping cart in a supermarket, the cart collects the items that the shopper of collecting until the buyer is ready to check out, or pay. Ecommerce shopping carts have to ability to count, summarize costs, apply a shipping rate, and any applicable tax rate when the buyer is ready to enter their payment information.
  3. (Payment) Gateway - It is the equivalent of a physical point of sale terminal located in most retail outlets. Payment gateways encrypt sensitive information, such as credit card numbers, to ensure that information passes securely between the customer and the merchant.
  4. Host (Authorization & Settlement) - The host provides an authorization or decline message for the transactions with the card account number and/or available balances. The Address Verification System (AVS) and 3 digit verification code (CVV) are also authenticates as matching, or not matching, regardless of the approved or decline response. Authorization is usually completed within 2 or 3 seconds.
  5. Merchant Bank - Once the transaction is approved, the payment from the processor will arrive at the merchant's account within 2-3 days.
Your Merchant Account
My business is seasonal; can I open an account for occasional use?
The merchant will be charged the customer service fee only. The account will be open on the date the merchant asked for it on the form.

I have another business name…How do I set it up?
Send in the DBA change form with all the information and include all the requested documents.

Can I process sales for friends and associates? For other businesses I may have?
No. You were approved for a merchant account based of the declarations you made on the merchant application regarding your type of business. Any change in this information must be reported to IMS. Accepting credit card transactions on behalf of another business is considered factoring and is in violation of Visa, MasterCard and Discover Network regulations and is against the law in some states.

What is a qualified rate? What is a mid-qualified rate? What is a non-qualified rate?
The discount rate comprises a number of dues, fees, assessments, network charges and mark-ups merchants are required to pay for accepting credit and debit cards. Each bank has real costs in addition to the wholesale interchange fees.

  • Qualified Rate: This rate generally applies to in person transactions when the consumer swipes his credit. It is the lowest of the three types. A merchant who swipes a consumer credit card that is electronically authorized, and "batches out" within 24 hours of processing will generally qualify for this rate. If these circumstances are not met, the transaction may downgrade to a mid-qualified or non-qualified rate. If a merchant processes a business, corporate, foreign, or rewards card, it will typically downgrade to a non-qualified rate.
  • Mid-Qualified Rate: This rate is higher than the qualified rate. It generally applies to phone, fax, mail order, and Internet transactions that are not swiped or when the card is not present. To qualify for this rate for keyed transactions, the merchant must enter an order number, use Address Verification Service (AVS), and "batch out" within 24 hours of processing. If not, the transaction may downgrade to a non-qualified rate.
  • Non-Qualified Rate: This is the highest out of the three rates. This rate applies to business, corporate, foreign, rewards card, and transactions that do not meet the Visa/MasterCard/Discover Network requirements for qualified and mid-qualified transactions.

What is the Address Verification Service (AVS)? Why does it matter?
AVS is built into the authorization process to help prevent fraudulent transactions. The numerical portion of a consumer's address and the transaction data is matched against the address on file with the consumer's credit card. A response code is sent back with the approval or decline indicating whether the numeric information matched that of the cardholder's. This match (or mismatch) is provided to the merchant in order to make an informed decision regarding the status of the transaction. The use of AVS for businesses such as mail/telephone and Internet can result in lower discount rates, as well as a potential reduction in fraud. Its use is highly recommended.

What is Card Security Code (CSC)?
The Card Security Code is an important security feature for credit card transactions where the card is not present, like on the Internet or over the phone. This code has 3 or 4 digits and is in a different location depending on the card type. Requiring this code to be entered adds another layer of security to a transaction.
General Cardholder Data Security
How does data security affect you?
Data security is critical for all merchants who accept payment cards to protect their business and their customers' sensitive data. The card associations (Visa, MasterCard, American Express, Discover® Network, and JCB) have agreed on a single standard for how data is stored, processed, and transmitted: Payment Card Industry Data Security Standard (PCI DSS). Merchants who accept cards must comply with this standard. Please visit www.pcisecuritystandard.org for more information and a full listing of requirements.
Intuit QuickBooks Online Terminal
How do I accept credit cards with an online terminal?
With a few clicks in a Web browser you can process credit cards and view and print receipts using an online terminal. All you need is Internet access. No physical terminal or software required. Once you log on to our protected website select Process a Transaction and key in credit card information. Click Charge a Card and the transaction will be processed using secure 128-bit encryption. You can then view and print a receipt. Funds will be in your bank account in 2-3 days.

Do I need to buy new software to get started?
No, you already have everything you need.

Are there tools to help me manage my business as well as take payments?
Yes. You have complete access to Intuit Merchant Service Center to manage your merchant account, track transactions and deposits. You can view online statements and create reports.
Processing Credit Cards in QuickBooks
How do I apply for a QuickBooks merchant account?
  1. Complete a merchant application. Since a merchant account is a financial service involving the exchange of funds, you will need to complete a simple application. The application information includes:
    • Name, address, and telephone
    • Checking account (for funds to be deposited/withdrawn)
    • Federal Tax ID (for Corporations, LLCs, and Partnerships), and your Social Security number (for Sole proprietorships)
    • Type of business
    • Credit card processing history, if applicable
  2. We'll review your application. Our underwriters review your application for credit and type of business. Most applications are generally approved. However, certain business types may not be accepted.
  3. Setup: Once you are approved, we will assist you with setting up your processing equipment or processing software (if you're using a PC) and run a test transaction. You're then ready to process

How do I set up credit card payments in QuickBooks?
From the Customer menu, select Receive Payments, then select Learn About Credit Card processing, then to a landing and login page to apply, or call us.

Can I process transactions on my laptop while traveling?
Yes -Intuit QuickBooks Virtual Terminal Plus turns any Internet browser with a connection into a credit and debit card processing terminal. By using an existing QuickBooks customer list, or by entering a new customer, invoice payments are registered.

Can I set up recurring payments?
Yes. This is one of the great features of processing credit cards in QuickBooks software. You are able to set up customers for Automatic Credit Card Billing. This feature lets you charge your customer's credit card on the date you specify. You will be able to download these transactions into your QuickBooks software.

Can you provide copies of customer information?
Due to security regulations we do not have access to your customer information. This information is stored in your software. As with most software applications you should always keep secure back-up disks.

Will my existing transactions integrate with QuickBooks?
If you currently have a terminal account with Intuit Payment Solutions and have QuickBooks2006 or earlier, we can set you up to download payments so you can record this information in your software.

Should I use an Internet gateway? How does Internet processing work?
Internet payments occur with a multi-step process that uses:
  1. Merchant Website - This could be any e-commerce site, or Internet store.
  2. (Shopping) Cart - E-commerce shopping carts have functionality to count, summarize costs, apply a shipping rate, and any applicable tax rate for buyers who are ready to purchase and enter their payment information.
  3. (Payment) Gateway - The equivalent of a physical point of sale terminal found in most retail stores, payment gateways encrypt sensitive information, such as credit card numbers, to ensure that information passes securely between the customer and the merchant.
  4. Host (Authorization & Settlement) - The host provides an authorization or declination message for transactions with the card account number and/or available balances. The Address Verification System (AVS) and 3-digit card verification code (CVV) provides authentication, regardless of the approve or decline response. Authorization is usually completed within 2 or 3 seconds.
  5. Merchant Bank - Once the transaction is approved, your payment will be deposited in your bank account within 2-3 days.
Processing Credit Cards in QuickBooks POS
Should I use a point of sale system?
If you see your customers in person, processing a transaction by swiping the customers' credit card will provide the best processing rate.

What's the difference between a card terminal and QuickBooks Point of Sale?
QuickBooks Point of Sale combines inventory, sales, and customer management with credit card processing while a terminal is only a payment processing device.

Can I use gift cards?
Yes. For more information, just contact us and we can walk you through the details.


Have additional questions? Feel free to contact us at (866)-949-QBMS (7267) Monday thru Friday between 9AM and 6PM. A live representative will more than happy to assist you with anything else you may need.
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© 2009 IMS of Central AZ is an independent sales agent of Innovative Merchant Solutions, LLC. Innovative Merchant Solutions, LLC is a registered agent of Westamerica Bank, Santa Rosa, CA, and JP Morgan Chase Bank, Columbus, OH. FDIC insured. Terms, conditions, pricing, features and service offerings subject to change without notice. Designed by forwardMOTION Concepts