If you\’re a small service-based business in the U.S., you know how painful it can be to wait on payments. The work is done, the invoice is out, and then…silence. Paper checks take forever, ACH feels like a mystery, and credit card fees feel like a tax on your hustle.
At PlotPath, we help business owners cut through the chaos and get paid faster without overcomplicating their invoicing process.
Here’s how to set up online payments the right way in QuickBooks Online and Xero
- Get paid in days instead of weeks
- Offer flexible payment options for your clients
- Reduce the hours you spend chasing unpaid invoices
And bonus? Most payment fees are tax-deductible.
In QuickBooks Online, ACH is built in. In Xero, you’ll need to connect a third-party app (more on that below).
The goal is simple: steer your customers toward ACH payments by default. Most accounting platforms let you turn off credit card payments by default while leaving ACH turned on. This saves you 2.9% on every transaction.
But don\’t eliminate credit cards entirely. Flexibility gets you paid faster, and some clients will insist on it. Think of ACH as your default, and credit cards as a backup.
Here’s how to optimize your QuickBooks Online setup for smooth online payments
1. Set ACH as the default:
Go to Settings > Custom Form Styles > Payments and uncheck credit cards on your default invoice template. You can always enable credit card payment on a per-invoice basis later.
2. Set up a QuickBooks Payments account:
Go to Settings > Accounts and Settings > Payments or call (888) 216-7125. This activates built-in payment options and integrates automatically with your books.
3. Automate your invoicing:
Use recurring invoices, reminders, and management reports to reduce manual follow-up.
1. Set up a payment service:
Connect a third-party processor via the Xero App Marketplace. Stripe is the most popular for card payments. Receivabl.es offers a clean ACH experience with a low fee (1%, capped at $6).
2. Create multiple invoice templates:
Go to Settings > Invoice Settings and create different branding themes – one that accepts only ACH, and one that allows cards too. Use ACH by default and offer cards only on request.
3. Customize email messages:
Make sure your invoice emails are branded and include payment instructions. This builds trust and encourages faster payments.
Bookkeeping systems should work for you – not the other way around.
10 FAQs About Online Payment Setup for Service-Based Businesses
Q: What is ACH?
A: ACH (Automated Clearing House) is a low-cost, bank-to-bank transfer method that lets clients pay directly from their account – typically with no processing fees.
Q: Should I turn off credit card payments?
A: No, but you should default to ACH. Credit cards are great as a backup, especially for clients who want flexibility, but they come with higher fees.
Q: Are credit card fees worth it?
A: If they help you get paid faster, yes. The 2.9% fee is often better than waiting 30+ days and the fees are tax-deductible.
Q: How do I set up online payments in QuickBooks?
A: Go to Settings > Payments > Set Up QuickBooks Payments. Then configure your invoice template to accept ACH by default and cards only by request.
Q: How do I accept online payments in Xero?
A: You’ll need to integrate a payment service like Stripe, PayPal, or Receivabl.es through the Xero App Marketplace.
Q: Can I automate invoice reminders in QBO and Xero?
A: Yes. Both systems let you schedule automatic reminder emails for unpaid invoices, helping reduce follow-up time.
Q: How do I get clients to actually pay online?
A: Include a prominent “Pay Now” button on your invoice, send professional reminder emails, and default to ACH on your invoice templates.
Q: Is ACH safe for my business and clients?
A: Yes. ACH is widely used by banks and accounting software providers. It’s encrypted and secure, with lower risk and fees than cards.
Q: What if a client still wants to mail a check?
A: Include mailing instructions on your invoice as a last resort, but coach clients to use ACH for speed and reliability.
Q: Can PlotPath help us set all this up?
A: Absolutely. We help service-based businesses streamline their payments, clean up their books, and build systems that actually work.
10 Common Online Payment Issues (and How to Fix Them)
1. Clients still mail paper checks
→ Add ACH info to your invoice email and template. Make the Pay Now button obvious.
2. High credit card fees
→ Default to ACH. Only enable credit cards on request, not by default.
3. Invoices don’t look professional
→ Customize your templates with branding, contact info, and clear payment instructions.
4. “I never saw the invoice” complaints
→ Use automated reminders. Set them for 3, 7, and 14 days after sending.
5. Payments not syncing with bookkeeping
→ Check that your payment provider is fully integrated with your accounting system.
6. ACH not working in Xero
→ Use Receivabl.es or a Stripe ACH integration. Test it first.
7. Late payments disrupt cash flow
→ Add late fees. Include them on follow-up invoices. You can always waive them if needed.
8. Clients paying with wrong method
→ Create multiple templates: one for ACH, one for credit cards. Use the right one for each client.
9. You’re duplicating invoices
→ Audit recurring settings. Use naming conventions and tags to track what’s sent.
10. Clients ignore reminders
→ Try a personal follow-up after the second auto-reminder. A quick call or customized email goes a long way.
