QuickBooks^® Request for Payment Invoicing

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Integrating surcharge and cash discounting strategies with QuickBooks Online (QBO) for free real-time payments through FedNow across Point of Sale (POS), eCommerce, and Mail Order/Telephone Order (MOTO) channels involves a detailed setup process. Below is a comprehensive guide to help U.S. companies and businesses implement these strategies effectively.

1. General Setup in QuickBooks Online (QBO)

A. Setting Up FedNow Payments

1. Ensure Bank Compatibility:

• Verify that your bank supports FedNow and that it can integrate with QBO.

2. Connect Bank Account to QBO:

• Go to Banking > Link Account and follow the instructions to connect your FedNow-enabled bank account.

B. Creating Discount and Surcharge Items in QBO

1. Create a Cash Discount Item:

• Go to Sales > Products and Services > New > Service.
• Name it “Cash Discount”.
• Set the rate to a negative percentage to reflect the discount (e.g., -2%).

2. Create a Surcharge Item:

• Go to Sales > Products and Services > New > Service.
• Name it “Credit Card Surcharge”.
• Set the rate to a positive percentage to reflect the surcharge (e.g., 2%).

2. Implementing for Different Business Types

A. Point of Sale (POS) Systems

1. Configure POS System:

• Ensure your POS system can integrate with QBO and handle various payment methods.
• Add FedNow as a payment option in your POS system.

2. Applying Discounts and Surcharges:

• When processing a payment, apply the “Cash Discount” item for FedNow payments.
• Apply the “Credit Card Surcharge” item for credit card payments.

3. Customer Communication:

• Display clear signage informing customers about the discount for using FedNow and the surcharge for credit card payments.
• Example Signage: “Save 2% by paying with FedNow. A 2% surcharge applies to credit card payments.”

4. Train Staff:

• Train your staff on how to apply these discounts and surcharges and explain them to customers.

B. eCommerce Platforms

1. Update eCommerce Platform:

• Ensure your eCommerce platform can accept FedNow payments and integrate with QBO.
• Implement automated systems to apply discounts for FedNow payments and surcharges for credit card payments.

2. Set Up Discount and Surcharge Rules:

• Configure your eCommerce platform to apply a 2% discount for FedNow payments and a 2% surcharge for credit card payments during checkout.

3. Communicate with Customers:

• Clearly display information about payment options, discounts, and surcharges on the payment page.
• Example Notice: “Pay with FedNow and receive a 2% discount. Credit card payments will include a 2% surcharge.”

4. Checkout Process:

• Ensure that the total amount updates dynamically based on the payment method selected by the customer.

C. Mail Order/Telephone Order (MOTO)

1. Handle Payments:

• For telephone orders, train staff to inform customers about the payment options, including applicable discounts and surcharges.
• For mail orders, include payment options and discount/surcharge information in your order forms and catalogs.

2. Process Invoices:

• Manually apply the “Cash Discount” or “Credit Card Surcharge” item in QBO based on the customer’s payment method.

3. Communicate with Customers:

• Clearly state payment options and associated costs in your communications and order forms.
• Example Script for Phone Orders: “You can save 2% by paying with FedNow. If you prefer to use a credit card, a 2% surcharge will be added to cover processing fees.”

3. Monitoring and Optimization

1. Review Transactions:

• Regularly review transactions in QBO to ensure discounts and surcharges are applied correctly.

2. Gather Feedback:

• Collect customer feedback to understand their experience and make necessary adjustments.

3. Compliance Check:

• Stay updated with state and federal regulations regarding surcharges and cash discounting to ensure compliance.

Example Implementation Scenarios

POS Example

1. Invoice Creation:

• Base price of an item: $100.
• Customer pays using FedNow: Apply a 2% “Cash Discount” (subtract $2).
• Customer pays with a credit card: Apply a 2% “Credit Card Surcharge” (add $2).

2. Customer Communication:

• Add a line item for the discount or surcharge on the invoice.
• Include a note: “Save 2% by paying with FedNow. A 2% surcharge applies to credit card payments.”

eCommerce Example

1. Checkout Page:

• Base price of a product: $100.
• FedNow Payment: Automatically apply a 2% discount, final price $98.
• Credit Card Payment: Automatically add a 2% surcharge, final price $102.

2. Customer Notice:

• Clearly display the discount and surcharge information on the checkout page.

MOTO Example

1. Order Processing:

• Include payment option details in order forms and catalogs.
• When processing the order, apply the appropriate discount or surcharge based on the payment method.

2. Invoice Adjustment:

• Manually adjust the final amount on the invoice to reflect the discount or surcharge.

By following these steps, businesses can effectively use QBO to implement surcharge and cash discounting strategies, encouraging the use of FedNow for real-time payments and optimizing their payment processing costs across POS, eCommerce, and MOTO channels.