Decoding “Send and Fund” in QuickBooks: Your Expert Guide to Seamless Payments

Let’s cut through the noise. “Send and Fund” in QuickBooks refers to a streamlined payment process that allows you to send invoices to your customers and simultaneously initiate a payment from their linked bank account or debit card directly within the QuickBooks platform. It’s a game-changer for cash flow, automating the traditionally separate steps of invoicing and payment collection. Think of it as invoicing and ACH (Automated Clearing House) payments having a beautiful, mutually beneficial relationship, all managed within your accounting software.

The Nitty-Gritty of Send and Fund

At its core, “Send and Fund” simplifies getting paid. Here’s a breakdown of how it works:

1. Create an Invoice: You generate an invoice as you normally would in QuickBooks, detailing the goods or services provided, the amount due, and the payment terms.
2. Enable Send and Fund: You’ll find the “Send and Fund” option typically presented when sending the invoice. Enabling this feature presents your customer with the opportunity to pay directly from their bank account or debit card.
3. Customer Authorization: Your customer receives the invoice via email. Instead of just seeing a “Pay Now” button linked to a credit card processor, they also see the option to securely link their bank account or use a debit card for payment. This is usually facilitated through a secure third-party service integrated with QuickBooks.
4. Payment Processing: Once the customer authorizes the payment, the funds are transferred from their account to yours through the ACH network. QuickBooks tracks this transaction, automatically reconciling the invoice as paid.
5. Automated Reconciliation: The transaction is automatically recorded in your QuickBooks account, reducing manual data entry and ensuring accuracy.

Essentially, “Send and Fund” transforms a traditionally manual, multi-step process into a single, efficient action.

Benefits of Using Send and Fund

Why should you care about “Send and Fund?” Here’s a glimpse into the advantages:

• Faster Payments: ACH payments often clear faster than checks, significantly improving your cash flow. Credit card payments often clear faster, too!
• Reduced Manual Work: Automating payment collection reduces the time and effort spent chasing payments and manually reconciling transactions.
• Improved Accuracy: Automated reconciliation minimizes the risk of errors associated with manual data entry.
• Enhanced Customer Experience: Providing customers with a convenient and secure payment option can improve customer satisfaction and encourage repeat business.
• Lower Transaction Fees: ACH transactions generally have lower fees compared to credit card processing, saving you money on payment processing costs.
• Better Cash Flow Forecasting: With faster and more predictable payments, you can improve your cash flow forecasting accuracy.
• Streamlined Accounting: Seamless integration with QuickBooks simplifies your accounting processes and provides a clear audit trail.

Potential Considerations

While “Send and Fund” offers significant advantages, it’s essential to be aware of potential considerations:

• Customer Adoption: Some customers may be hesitant to link their bank accounts or debit cards due to security concerns. Clear communication and assurance of security are crucial.
• Setup and Integration: Setting up “Send and Fund” may require some initial configuration and integration with third-party services.
• Transaction Limits: There may be transaction limits associated with ACH payments, depending on your bank and payment processor.
• Processing Time: While generally faster than checks, ACH payments can still take a few business days to clear. Credit card payments usually clear faster.
• Security: Ensure you and your payment processor are using industry-standard security measures to protect sensitive financial information.

Send and Fund: A Practical Example

Imagine you run a small marketing agency. You’ve just completed a website redesign for a client. Using QuickBooks, you create an invoice for $5,000. Instead of just emailing the invoice with a generic “Pay Now” button linked to a credit card processor, you enable “Send and Fund.”

Your client receives the invoice and sees the option to securely link their business bank account. They authorize the payment, and $5,000 is transferred to your account. QuickBooks automatically marks the invoice as paid and records the transaction. You’ve saved time, reduced manual work, and gotten paid faster.

Frequently Asked Questions (FAQs)

1. Is “Send and Fund” available in all versions of QuickBooks?

The availability of “Send and Fund” can vary depending on your specific QuickBooks version (Online, Desktop) and subscription level. Check your QuickBooks plan details or contact Intuit’s support for confirmation.

2. What are the transaction fees associated with “Send and Fund?”

Fees vary depending on your payment processor and the type of payment (ACH, debit card, or credit card). Generally, ACH fees are lower than credit card fees. Consult your payment processor’s fee schedule for detailed information.

3. How secure is “Send and Fund?”

Reputable “Send and Fund” integrations utilize industry-standard security measures, such as encryption and tokenization, to protect sensitive financial information. Look for PCI DSS compliance to ensure your data is protected.

4. What if a customer’s ACH payment fails?

If an ACH payment fails due to insufficient funds or other reasons, you’ll be notified by your payment processor. You’ll need to contact the customer to resolve the issue and arrange for alternative payment.

5. Can I customize the email message sent to customers with the “Send and Fund” option?

Yes, QuickBooks allows you to customize the email message sent to customers, including adding instructions or reminders about using the “Send and Fund” option.

6. How do I set up “Send and Fund” in QuickBooks?

The setup process typically involves connecting your QuickBooks account to a compatible payment processor and configuring your payment settings. Refer to your payment processor’s documentation or QuickBooks support for step-by-step instructions.

7. What payment processors are compatible with “Send and Fund” in QuickBooks?

Several payment processors integrate with QuickBooks for “Send and Fund” functionality. Examples include Intuit Merchant Services, Melio, and others. Confirm compatibility with your chosen processor.

8. Can I use “Send and Fund” for recurring invoices?

Yes, “Send and Fund” can be used for recurring invoices, allowing you to automate payment collection for subscriptions or recurring services.

9. How does “Send and Fund” impact my accounting reports?

“Send and Fund” streamlines your accounting reports by automatically recording payments and reconciling invoices, providing a more accurate and up-to-date view of your financial position.

10. What happens if a customer disputes a payment made through “Send and Fund?”

The dispute resolution process will depend on your payment processor’s policies. You may need to provide documentation to support the validity of the transaction.

11. Is there a limit to the amount I can receive through “Send and Fund?”

Yes, there may be transaction limits associated with ACH payments and credit card payments, depending on your bank, payment processor, and account settings.

12. Can I offer both credit card and ACH payment options with “Send and Fund?”

Yes, most “Send and Fund” integrations allow you to offer both credit card and ACH payment options to your customers, providing them with flexibility and choice.