Using Request for Payment (RfP) in QBO QuickBooks® for RTP® and FedNow® Free Real-Time Payments

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To integrate multiple choices using QuickBooks Online (QBO) invoices—including virtual cards, surcharging, service fees, and convenience fees—while promoting free real-time payments through FedNow, follow these detailed steps:

1. Setting Up FedNow Payments in QBO

1. Ensure Bank Compatibility:

• Verify that your bank supports FedNow and integrates with QBO.

2. Connect Bank Account to QBO:

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

2. Creating Fee and Discount Items in QBO

1. Create a Cash Discount Item:

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

2. Create a Surcharge Item:

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

3. Create a Service Fee Item:

• Go to Sales > Products and Services > New > Service.
• Name it “Service Fee” and set a fixed amount or percentage.

4. Create a Convenience Fee Item:

• Go to Sales > Products and Services > New > Service.
• Name it “Convenience Fee” and set a fixed amount or percentage.

3. Applying Fees and Discounts on Invoices in QBO

A. Creating an Invoice with Multiple Payment Options

1. Create an Invoice:

• Go to Sales > Invoices > New Invoice.
• Fill in the customer details and add the products/services.

2. Add Payment Option Notes:

• In the Message on invoice field, include notes about payment options, discounts, and fees.
• Example: “Save 2% by paying with FedNow. A 2% surcharge applies to credit card payments. Additional fees may apply for certain services.”

3. Add Fee and Discount Line Items:

• Add the “Cash Discount” item for FedNow payments.
• Add the “Credit Card Surcharge” item for credit card payments.
• Add the “Service Fee” item if applicable.
• Add the “Convenience Fee” item if applicable.

4. Subtotal Adjustments:

• Adjust the subtotal based on the selected payment method.

B. Handling Virtual Card Payments

1. Create a Virtual Card Payment Item:

• If using a virtual card processor, set up an item for virtual card transactions.
• Name it “Virtual Card Payment” and link it to the appropriate expense account.

2. Add Virtual Card Fee:

• If your business incurs fees for virtual card payments, create a line item similar to the service or convenience fee.

4. Customer Communication

1. Invoice Notes:

• Clearly outline the payment options and associated fees on the invoice.
• Example: “Pay with FedNow and receive a 2% discount. Credit card payments will include a 2% surcharge. Additional fees apply for certain services or payment methods.”

2. Email Communication:

• When sending the invoice via email, include information about payment options and fees in the email body.

5. Monitoring and Optimization

1. Review Transactions:

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

2. Gather Feedback:

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

3. Compliance Check:

• Ensure that your practices comply with state and federal regulations regarding surcharges, service fees, and convenience fees.

Example Implementation Scenarios

POS Example

1. Invoice Creation:

• Base price of an item: $100.
• FedNow Payment: Apply a 2% “Cash Discount” (final price $98).
• Credit Card Payment: Apply a 2% “Credit Card Surcharge” (final price $102).
• Service Fee: Add $5 for a specific service.
• Convenience Fee: Add $3 for using a non-standard payment method.

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).
• Additional Service Fee: $5.
• Convenience Fee: $3.

2. Customer Notice:

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

MOTO Example

1. Order Form:

• Include notes about payment options, discounts, and fees.
• Example: “Save 2% by paying with FedNow. A 2% surcharge applies to credit card payments. Additional fees may apply for certain services.”

2. Invoice Adjustment:

• Manually adjust the final amount to reflect the discount or fees based on the payment method.

By integrating these strategies, businesses can leverage QBO to offer a variety of payment options, encouraging the use of FedNow for real-time payments while efficiently managing transaction costs through surcharges, service fees, and convenience fees.