What Are Payment Methods?

As the name suggests, Payment Methods are a list of the ways by which a customer can make a payment. They’re maintained on the Lists->Customer & Vendor Profile Lists->Payment Methods menu selection as 1 of 9 profile lists for Customers & Vendors. This particular profile list is only used for Customers.

A Payment Method can be one of 11 pre-defined Payment Types:

  1. Cash
  2. Check
  3. American Express
  4. Discover
  5. MasterCard
  6. Visa
  7. Other credit card
  8. Other
  9. Debit Card
  10. Gift Card
  11. E-Check

These Payment Types are part of the QuickBooks program itself and can’t be maintained by a user.

The Customer’s Payment Method is specified on the Receive Payments and the Enter Sales Receipts windows, and payments are grouped by Payment Method on the Payments to Deposit window if you’ve opted to use the Undeposited Funds account.

If you have a lot of payments to deposit, you can opt to the filter the items on the Payments to Deposit window to only include 1 particular Payment Method. Therefore, you should create Payment Methods that match the way your customer payments are grouped into deposits.

You can also specify a customer’s Preferred Payment Method on the Payment Info tab of the Edit Customer window.

Payment Methods primarily serve the function of grouping related items on a deposit, so your firm’s approach to bank deposits should drive the methods you create and maintain on this list.

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  1. We use point is sale. If a customer wants to make a payment on account with a gift card. Why does it still show a past due balance ?

  2. Larry Labat says

    I just started using Intuit Payment Network…
    My dash board has item on it that should have changed when i altered the invoice in QB, but it didn’t. How do I clear these items from my dashboard?

  3. Kris Spangler says

    My Quick book account allows me to invoice for my new landscape business but will only allow bill pay options by other quick book users. How can I get it to accept payment from individuals without quick books?

    • Chief Mechanic says

      If other users have access to a function you don’t, you’ll have to find the account with administrator permissions and from that account, modify the permissions for your account as needed.

  4. We have QB Pro 2010. One of the “Payment Methods” is “Online Bill Payment Check.” What is this used for?

    If we receive a paper check that a customer sent from their online checking, isn’t that just a “Check.”

    • Chief Mechanic says

      It sounds like you are referring to the Intuit Payment Network. Visit the Company Preferences tab of Edit->Preferences->Payments menu. If you’re not using the Intuit Payment Network, you can disable these features and delete any payment methods that you don’t use. If you receive a paper check, a payment method of “Check” is a very accurate way to describe that transaction.