QuickBooks and Merchant Services the Smart Way

This post is for QuickBooks users who have taken advantage of, or want to take advantage of, Quickbooks seemless integration with Intuit Payment Solutions Merchant Service Center to process credit card transactions. It is the contribution of Larry Sachs, who has over 18 years of experience in the field of process improvement and has worked with companies such as Toys ‘R Us and Jet Aviation. Larry is now a Sales Agent with Innovative Merchant Solutions, an Intuit Company.

Many years back, during the primordial stage of Business Intelligence (it was called Analytics back then) I headed up the technology group for a major international retailer. As is still the case, our largest competitor was Target; the gold standard for retail and distribution, and the envy of many other retailers.

The department heads for IT, real estate, merchandising and marketing would shop at least twice a week at Target to observe their processes, technology, marketing, etc. We would then have weekly meetings to discuss our findings.

During my shopping trips, I noticed that customers were asked for their phone numbers and zip codes at the check‐out register. Target collected and processed this information, using it to pinpoint the location of all customers, develop advertising and select new store locations.

Over the course of a few weeks, I began to realize that the cashier on the express lane that I always used, whose name was Ashley, never asked me for my phone number and zip code; instead, she keyed in her own each time, presumably to speed things up. I’d be curious to see if by now Target has opened a Super Center next door to Ashley’s house.

The obvious message is that without proper training and oversight, even the best ideas will never meet their objectives. We see this issue all the time when analyzing client statements from other merchant processors. We find that they’re paying much higher rates than they think, and paying more than necessary due to poor processes, outdated equipment and loose compliance. This is why we not only develop a rate plan optimized for each and every client, but we also perform a quarterly audit to ensure that they are following the proper procedures and paying the lowest rates possible.

One of the most common pitfalls to avoid is the failure to follow through and oversee your plans once they’re put into action. Put checks and balances in place to ensure that your directives meet with success. For example, we perform reviews to determine if clients are bypassing Address Verification, taking advantage of the lower rate charged for debit cards, and providing proper information so Visa corporate cards are processed at a reduced rate. Another prudent way to avoid problems is to make sure that everyone is not only trained and proficient, but following proper procedures. Check regularly, and don’t forget to keep equipment up‐to‐date in order to stay current with Visa and MasterCard security requirements. In my opinion, banks these days are already getting far too much of our money. Let’s keep it in the hands of the businesses and professionals who don’t have the time or knowledge to analyze what they are paying in merchant processing fees.

Larry can be reached at (201) 739-7349 and (888) 399-3523, or via e-mail to Larry@Innovativemerchantsystems.com

Note to readers With Intuit Payment Solutions users can record credit transactions in QuickBooks and automatically go online to obtain authorization. They can also process credit charges online from anywhere they have internet access, including a wireless broadband connection on a laptop. To record the merchant service deposit and related transaction fees in QuickBooks, you need only press “Merchant Service Deposits”. By the way, Larry mentioned he has a client processing over 4,000 transactions per month. I want to hear more about that.

Robert Guild is certified QuickBooks ProAdvisor in Austin, TX who conducts CPE courses for CPAs and individual training and group classes to QuickBooks users.  His company Accounting Insight maintains a sixteen station QuickBooks lab, providing hands on training.  You can contact him directly at rguild@accountinginsight.biz or follow him on twitter at QBPro