FedNow Immediate Payment Service

To incorporate Immediate Payment Service (IPS) using TodayPayments.com for FedNow Real-Time Payments in your business, you can follow these steps to integrate this service with QuickBooks Online (QBO). This guide covers the setup for multiple payment options, including VIRTUAL CARD, surcharging, service fees, and convenience fees for POS, eCommerce, and MOTO transactions.

Steps to Implement TodayPayments.com for FedNow Real-Time Payments

1. Setting Up TodayPayments.com with FedNow in QBO

A. Register and Configure TodayPayments.com

1. Register an Account:

• Sign up on TodayPayments.com and complete the necessary setup to enable FedNow Real-Time Payments.

2. API Integration:

• Integrate TodayPayments.com API with QBO to facilitate real-time payments. Follow the API documentation provided by TodayPayments.com for seamless integration.

2. Creating Fee and Discount Items in QBO

1. Create a Cash Discount Item:

• Go to Sales > Products and Services > New > Service.
• Name it “Cash Discount” and set the rate to a negative percentage (e.g., -2%).

2. Create a Surcharge Item:

• Go to Sales > Products and Services > New > Service.
• Name it “Credit Card Surcharge” and set the rate to a positive percentage (e.g., 2%).

3. Create a Service Fee Item:

• Go to Sales > Products and Services > New > Service.
• Name it “Service Fee” and set a fixed amount or percentage.

4. Create a Convenience Fee Item:

• Go to Sales > Products and Services > New > Service.
• Name it “Convenience Fee” and set a fixed amount or percentage.

3. Applying Fees and Discounts on Invoices in QBO

A. Creating an Invoice with Multiple Payment Options

1. Create an Invoice:

• Go to Sales > Invoices > New Invoice.
• Fill in the customer details and add the products/services.

2. Add Payment Option Notes:

• In the Message on invoice field, include notes about payment options, discounts, and fees.
• Example: “Save 2% by paying with FedNow via TodayPayments.com. A 2% surcharge applies to credit card payments. Additional fees may apply for certain services.”

3. Add Fee and Discount Line Items:

• Add the “Cash Discount” item for FedNow payments.
• Add the “Credit Card Surcharge” item for credit card payments.
• Add the “Service Fee” item if applicable.
• Add the “Convenience Fee” item if applicable.

4. Subtotal Adjustments:

• Adjust the subtotal based on the selected payment method.

4. Customer Communication

1. Invoice Notes:

• Clearly outline the payment options and associated fees on the invoice.
• Example: “Pay with FedNow via TodayPayments.com and receive a 2% discount. Credit card payments will include a 2% surcharge. Additional fees apply for certain services or payment methods.”

2. Email Communication:

• When sending the invoice via email, include information about payment options and fees in the email body.

5. Monitoring and Optimization

1. Review Transactions:

• Regularly review transactions in QBO to ensure discounts and fees are applied correctly.

2. Gather Feedback:

• Collect customer feedback to understand their experience and make necessary adjustments.

3. Compliance Check:

• Ensure that your practices comply with state and federal regulations regarding surcharges, service fees, and convenience fees.

Example Implementation Scenarios

POS Example

1. Invoice Creation:

• Base price of an item: $100.
• FedNow Payment: Apply a 2% “Cash Discount” (final price $98).
• Credit Card Payment: Apply a 2% “Credit Card Surcharge” (final price $102).
• Service Fee: Add $5 for a specific service.
• Convenience Fee: Add $3 for using a non-standard payment method.

2. Customer Communication:

• Add a line item for the discount or surcharge on the invoice.
• Include a note: “Save 2% by paying with FedNow via TodayPayments.com. A 2% surcharge applies to credit card payments.”

eCommerce Example

1. Checkout Page:

• Base price of a product: $100.
• FedNow Payment: Automatically apply a 2% discount (final price $98).
• Credit Card Payment: Automatically add a 2% surcharge (final price $102).
• Additional Service Fee: $5.
• Convenience Fee: $3.

2. Customer Notice:

• Clearly display the discount and surcharge information on the checkout page.

MOTO Example

1. Order Form:

• Include notes about payment options, discounts, and fees.
• Example: “Save 2% by paying with FedNow via TodayPayments.com. A 2% surcharge applies to credit card payments. Additional fees may apply for certain services.”

2. Invoice Adjustment:

• Manually adjust the final amount to reflect the discount or fees based on the payment method.

By integrating these strategies, businesses can leverage QBO and TodayPayments.com to offer a variety of payment options, encouraging the use of FedNow for real-time payments while efficiently managing transaction costs through surcharges, service fees, and convenience fees.