This series began with Why People Love and Hate Paypal and we discussed PayPal vs. Stripe. Now, we take it a step further buy discussing this from the bookkeeping point of view.
One of the single most important features of a merchant services provider is getting your money but as an accounting professional, that may not be the case. For you, particularly those with Value Billing, you are probably thinking about the ease of handling the transactions. Each merchant services provider does it differently.
With PayPal, downloading the bank feed into QuickBooks is useful and often necessary AT LEAST FOR THE EXPENSE PART since PayPal is like a bank account and people make payments FROM it also. Bank feeds solve this problem. But what about the payments received part? This is NOT as easy to manage and quite frankly, it’s painful to many. The transaction fee (merchant fee) and discounts get bundled into the single line item. But there is a solution. With QBO, you can install the Sync with PayPal add-on. Now, you can delete each of the payments received or delete the bank feed altogether. Ideally, PayPal offers a lot of functionality but the fact that it’s a merchant service and a bank account/credit card makes things more complicated. Because of this, most bookkeepers don’t love it. Attention to Intuit/QuickBooks, Xero, Sage and of course PayPal (or their competitors), this is what matters to so many. I hope you read this!
With Stripe, things are much easier as it’s just a simple payment system like a typical merchant services provider should be. The issue with Stripe is they lack phone support, the reporting and downloads are lacking and MOST IMPORTANTLY the add-on is yet to exist in the QuickBooks App Store. There are third party options like Stripe by Commerce Sync, but I’ve yet to find one worthy and reliable, while reasonably priced. PayPal sync above is FREE. I’m not sure why but it just doesn’t. However, it works with Xero. So there you have it. The cat is officially out of the bag.
While it’s still a bit of an old school provider, the best of the best is QB Payments. Fees are reasonable, it’s easier than ever to get started and if your software supports it (WooCommerce does), then you can get started fast with QB Payments and EVERY TRANSACTION IS AUTOMATICALLY POSTED TO QB AND QBO. Boom! Learn more about QB Payments from our very own Carrie Hogan Kahn (a leading Intuit Partner) by joining her free Partner Program and you can get the best rates, support and experience possible with QB Payments (and other QuickBooks products). Best of all, work with Carrie and she’ll split the transaction fees she earns as an Intuit Partner/Reseller 50/50. <<<< NO BRAINER!
So, whether it’s PayPal, Stripe, QB Payments or all the above, there’s much to think about. What do you use? What do you think? Respond below in the comments.