How to Set Up Recurring ACH Payment in QuickBooks Online

To set up recurring ACH payments in QuickBooks Online, you’ll first enable QuickBooks Payments, then create a recurring sales receipt linked to your customer’s bank account. When you automate ACH transfers, you save time, reduce late payments, and lower fees compared to credit cards.

Ensure ACH Payments Are Enabled in QuickBooks Online

Before setting up recurring ACH payments, you need to make sure that QuickBooks Payments is enabled on your account. ACH payments are processed through QuickBooks Payments, which allows customers to connect their bank accounts for transfers.

• Go to Settings (⚙️) > Account and Settings.
• Select Payments.
• If you haven’t set up QuickBooks Payments yet, you’ll need to apply for it. Once approved, ACH payments will be available as an option.

Example: If you’re running a marketing agency and invoice clients monthly for a retainer, enabling ACH will let you automatically collect funds from their checking accounts without chasing payments.

Create a Recurring Sales Receipt

Recurring ACH payments in QuickBooks Online are created through sales receipts, not invoices. A sales receipt automatically charges the customer’s bank account according to the schedule you define.

Here’s how:

1. Go to Settings (⚙️) > Recurring Transactions.
2. Click New.
3. For Transaction Type, choose Sales Receipt and click OK.
4. Select the Customer you want to set up recurring ACH payments for.

Define the Recurrence Schedule

You’ll now decide how often the ACH payment should run.

• Under Template Name, give your template a name (e.g., “Monthly Retainer – Client X”).
• Set the Type to “Scheduled.”
• Choose the Interval (e.g., monthly, weekly, quarterly).
• Enter the Start Date and, if needed, an End Date (for limited contracts).

Example: A contractor who provides ongoing property maintenance might set up a monthly ACH payment of $1,200 starting on the first of the month.

Enter Payment Method as Bank Account (ACH)

To process recurring ACH, the customer’s bank account details must be saved.

• In the Payment Method field, choose Bank Transfer (ACH).
• If you already have the customer’s bank info on file, select it.
• If not, QuickBooks can send the customer a secure authorization form so they can enter their bank details directly.

Tip: Always ensure you have written authorization from your customer before setting up ACH payments on their behalf.

Add Line Items and Save the Template

Now, you’ll add the products or services being billed.

• Enter Product/Service, Description, Rate, and Amount.
• If the amount is fixed, keep it the same each cycle.
• If it changes, you’ll need to adjust it manually before each run.
• Once everything looks good, click Save Template.

QuickBooks will now automatically draft ACH payments from the customer’s account based on the schedule you created.

Monitor ACH Payments

Recurring ACH payments will process on the defined dates. You can review them under:

• Sales > All Sales, or
• Reports > Recurring Templates Report to see all active recurring ACH arrangements.

If a payment fails (e.g., insufficient funds), QuickBooks will notify you, and you can follow up with the customer.

Bonus: Automate Payment Collections with DepositFix and QuickBooks Integration

While QuickBooks Online offers recurring ACH, pairing it with DepositFix can further enhance your payment workflows. DepositFix integrates seamlessly with QuickBooks, letting you:

• Accept both credit card and ACH payments directly from your website or client portal.
• Automate syncing of payment data to QuickBooks.
• Pass processing fees to customers if desired.

This setup is perfect for businesses that need flexibility in how they bill clients, whether through invoices, subscriptions, or recurring payments.