QuickBooks Payments & prohibited categories

We recently helped an online FFL merchant with some basic information on how to accept credit cards through their Wix site, and the topic of QuickBooks processing came up. They were hoping to use QuickBooks to key enter some of their net-30 B2B clients who mail in card numbers on their invoices and do it through Intuit’s standard processing. Luckily, we were able to set them up with an FFL friendly virtual terminal prior to them applying for, and being declined by, QuickBooks Payments.  This topic had come up before, although with a vape site using WooCommerce that also wanted to enter their mail-in wholesale distributor payments directly into QuickBooks. That made us realize we should take a moment and write up a post that gives high-risk merchants the basic dos and don’ts of Intuit’s QuickBooks payment service.

The very popular QuickBooks accounting software, developed and marketed by Intuit, is used mostly by small and medium-sized businesses. They offer “out of the box” payment acceptance called QuickBooks Payments that can simplify reporting and is a great fit for traditional merchants, but not high-risk merchants. High-risk merchants can still use QuickBooks for their accounting, but they will need to find other options for their credit card processing.

With a wide range of pricing plans and options for freelancers as well as bigger companies, the core accounting package remains one of the more impressive software suites of its kind.

QuickBooks accounting software features and benefits

The features QuickBooks offers, even for the basics, include tracking income and expenses, miles, and estimating quarterly taxes. It also allows users to create, and group, invoices and take credit card payments, and that’s just a small taste of the features they offer. With such a great variety of services, it can be very upsetting if you find yourself getting your merchant account application rejected by their standard credit card processor. 

Even though QuickBooks does have options that are aimed at Enterprise level companies and organizations, it is especially useful for SMB’s and self-employed professionals. They offer 4 primary packages, which are QuickBooks Self-Employed, QuickBooks Simple Start, QuickBooks Essential, and QuickBooks Plus, with both desktop and cloud-based options. Using their services, you’ll find a seamless solution that is good value for money.

Top 5 most common features in QuickBooks’ systems

While there are many recurring features that differ in depth depending on what option you pick, we have highlighted the top 5 most common features you get:

  1. Tracking income & expenses
  2. Maximizing tax deductions
  3. Running reports
  4. Invoicing & accepting payments
  5. Sending estimates

QuickBooks payments, distinct, but integrated

In addition to these features, their out of the box payment system, called QuickBooks payments is great, with seamless automated invoice updates. Keeping this in mind, it’s no surprise that QuickBooks gets great ratings, of up to 9.5/10 from FinancesOnline, and has become a relative household name for payment systems and merchant accounts. It is a superb tool for low-risk merchants, as it allows for ACH, credit card payments, and invoice creation with seamless integration into QuickBooks accounting software.

QuickBooks Payments, great for low-risk, but…

While it is excellent for low-risk merchant types, there are those who may have tried to engage with QuickBooks’ out of the box payment system, only to have their application rejected. Usually what happens in these cases is that their industry or product type isn’t supported. There are many possible reasons why this might happen, though it is likely connected to being unaware in advance that your industry might fall under Intuit’s list of prohibited business types when it comes to credit card processing.

What business types are prohibited by QuickBooks Payments?

Intuit’s payment guideline for QuickBooks enables a great share of merchants to use their in-house payment processor. However, the type of business you have matters if you are to run it with the help of QuickBooks Payments. The list of prohibited businesses at the time of this article appears to clearly include travel, financial services and products, MOTO (Mail order telephone order), and telecommunications, to name only a few.

Intuit’s Policy and high-risk merchant accounts

Intuit Payments Acceptable Use Policy does a good job of covering the categories they don’t support in a clear manner.  Having said that, we still want to take the time to highlight a few particular prohibited business types that potentially catch people by surprise. The reason that some merchants had their application to QuickBooks Payments rejected is usually that they are part of the industries that are categorized as high-risk merchants. Among these high-risk merchants are firearms sellers, vape and e-cigarette merchants, alcohol, and cigars. These are referred to as highly regulated MOTO (mail order, telephone order) businesses.

Alternatives to QuickBooks Payments for high-risk

Unfortunately, QuickBooks’ out of the box payment system integration, while brilliant, won’t work for many high-risk merchants. However, there are many other possible solutions for these business types to accept credit card payments for premium cigar, FFL, or vape websites. Over the years we’ve specialized in helping high-risk merchants who’ve come across trouble with standardized payment solutions, and we can provide you with the support you need to get the right payment gateway and high-risk merchant account recommendation for your vape, FFL, or premium cigar online sales.

What to do if your QuickBooks application is rejected

If your business is in e-cigarettes, vape, FFL, or premium cigars, the next step after a QuickBooks rejection is to look for viable merchant account and payment processing options. As it can be challenging if you’re unfamiliar with the processes, we will help guide you through it and ensure that you get the solution that’s optimal for your business.

For those who have tried to get their business going with QuickBooks in order to accept credit card payments on their vape site or online FFL store, and ended up being rejected, there are other solutions. The takeaway here is that there is no reason to worry if it turns out that QuickBooks cannot solve your problem. We’re here to help you with all of this. We will take our time to get to know your business well, and ensure that you get the right combo that works for you.

You can always contact us whenever you like with the contact form below, and we’ll get back to you as soon as possible. We look forward to hearing from you and working with your business!