QuickBooks charges a percentage of each credit card transaction, plus a per-transaction fee
QuickBooks does not charge a flat monthly fee for credit card processing. Instead, you pay a percentage of the transaction amount plus a fixed fee per transaction. The exact rate depends on which QuickBooks product you use and how the card is processed — in person, online, or by phone.
As of now, QuickBooks Payments charges between 2.6% and 3.5% plus $0.30 per transaction for online and phone payments, and between 2.6% and 3.5% plus $0.10 for in-person card-present transactions using their hardware. Rates vary based on your industry, processing volume, and card type (debit cards typically cost less than credit cards). These rates are subject to change, and QuickBooks may offer different pricing for different business sizes or industries.
The fee is deducted automatically from your account when the transaction settles, usually within one to two business days. You see the net deposit in your bank account, not the gross transaction amount.
Key Takeaways
- QuickBooks Payments charges a percentage (2.6% to 3.5%) plus a per-transaction fee ($0.10 to $0.30) rather than a monthly subscription for processing.
- The exact rate depends on how the card is processed: in-person, online, or by phone, and whether it is a credit or debit card.
- Fees are deducted from each transaction and your bank account receives the net amount after the fee is removed.
- You only pay when a transaction actually goes through; declined cards and refunds have different fee structures.
How QuickBooks calculates the fee on each transaction
When a customer pays you with a credit card through QuickBooks, the fee is calculated as a percentage of the transaction amount plus a flat per-transaction fee. For example, if a customer pays $100 online with a credit card and your rate is 3.5% plus $0.30, the fee is $3.50 plus $0.30, totaling $3.80. You receive $96.20 in your bank account.
The percentage portion scales with the transaction size — a $500 transaction at 3.5% costs $17.50 in percentage fees alone, plus the $0.30 flat fee. Debit cards usually have a lower percentage rate than credit cards, sometimes by 0.5% to 1%, so the same $100 debit transaction might cost $3.00 plus $0.30 instead.
QuickBooks applies the fee at the moment the transaction is authorized, not when it settles. If you refund the transaction later, the fee is also refunded to you, so you do not pay to process a transaction that does not stick.
Differences in rates by processing method
QuickBooks charges different rates depending on whether the card is physically present, entered online, or read over the phone. Card-present transactions — when a customer hands you their card or you swipe it in person — usually have the lowest rate because the fraud risk is lower. These typically run 2.6% to 2.9% plus $0.10.
Online and phone transactions carry higher rates, usually 3.0% to 3.5% plus $0.30, because there is no physical card to verify and fraud risk is higher. If you use QuickBooks' online invoicing or payment links, those transactions fall into the online category and use the higher rate.
If you use QuickBooks' hardware — a card reader or point-of-sale terminal — the in-person rate applies even if the customer is not physically at your location, as long as you use the hardware to process the card. This is why some businesses invest in the hardware: the lower rate can offset the cost over time if you process a high volume.
What happens with refunds and declined transactions
When you refund a credit card transaction, QuickBooks reverses the processing fee. You get the fee back, not just the transaction amount. This means refunding a $100 transaction that cost you $3.80 in fees returns the full $3.80 to you, plus the $100 to the customer.
Declined transactions do not cost you anything. If a customer's card is declined, no fee is charged because the transaction never went through. You can retry the card at no additional cost if the customer wants to try again — each attempt is a separate transaction with its own fee only if it succeeds.
Chargebacks and disputes work differently. If a customer disputes a charge and the chargeback is upheld against you, QuickBooks typically charges a chargeback fee (often $15 to $25) on top of reversing the original transaction and its fee. You lose the revenue, the processing fee, and pay the chargeback fee.
How QuickBooks rates compare to other payment processors
QuickBooks Payments' rates are in the middle range for small business processors. Stripe charges 2.2% plus $0.30 for online transactions and 2.7% plus $0.05 for card-present, which is lower than QuickBooks for online but similar for in-person. Square charges 2.6% plus $0.30 for online and 2.6% plus $0.10 for in-person, which is slightly lower than QuickBooks across the board.
PayPal's standard rate is 2.2% plus $0.30 for online transactions, making it cheaper than QuickBooks for that use case. However, QuickBooks integrates directly with QuickBooks accounting software, which can save time if you are already using QuickBooks for invoicing and bookkeeping — the transactions sync automatically without manual entry.
The lowest-cost processor is not always the best choice. If you use QuickBooks for accounting, the integration and automatic reconciliation may be worth paying slightly higher processing fees because you avoid manual data entry and reconciliation errors.
How to see what you are paying in processing fees
In QuickBooks Online, go to the Transactions tab and filter by payment method. Each transaction shows the gross amount, the fee deducted, and the net deposit. You can also run a report under Reports > Sales and Customers > Transaction List by Customer to see all payments and their fees in one view.
Your bank statement will show the net deposits only — the amount after fees are removed. If you want to track total fees paid in a month, add up the individual transaction fees in QuickBooks or export the transaction list to a spreadsheet and sum the fee column.
Some businesses track processing fees as a separate expense account in their accounting software so they can see how much they spend on payment processing each month. This helps you decide whether to raise prices slightly, switch processors, or invest in hardware to lower the per-transaction cost.
Frequently Asked Questions
Does QuickBooks charge a monthly fee for credit card processing?
No. QuickBooks Payments charges only per transaction — a percentage plus a flat fee — with no monthly subscription. You pay only when a transaction goes through. If you do not process any credit cards in a month, you pay nothing for processing.
Do I pay the processing fee if a customer's card is declined?
No. Declined transactions are not charged. You only pay the processing fee when the transaction is approved and goes through. You can retry a declined card at no cost if the customer wants to try again.
What is the difference between the rate for a debit card and a credit card?
Debit cards usually have a lower percentage rate than credit cards — often 0.5% to 1% less — because the fraud risk is lower and the card networks charge QuickBooks less. The flat per-transaction fee is usually the same. A $100 debit transaction might cost $2.80 in fees while a $100 credit card transaction costs $3.80.
Can I get a lower rate if I process a lot of transactions?
QuickBooks does not publicly advertise volume discounts, but some businesses with very high processing volume have negotiated custom rates. Contact QuickBooks sales directly to discuss your volume and ask whether a lower rate is available for your situation.
Do I get the processing fee back if I refund a transaction?
Yes. When you refund a credit card transaction, QuickBooks reverses both the transaction amount and the processing fee. You get the full fee back, not just a partial refund.