Set up a bank transfer to a vendor

Learn how to pay a vendor electronically.

By default, all vendors are setup to be paid via check. If you wish to pay a vendor by Bank Transfer (ePayment / ACH), you’ll need to set it up by either entering the vendors bank account manually or inviting the vendor. In this article, we’ll show you how to do both.

Add the vendor’s bank account #

To add the vendor’s bank account, follow these steps.

1. Sign in to your QuickBooks Online account.
2. Navigate to the Pay bills online page by the following:
   • Select + New. Then Pay Bills Online.
   • Selecting the Bill Pay Online dashboard widget.
   • Selecting the Expense tab, then Pay Bills Online.
3. To set up a vendor with open bills, select Set up Bank Transfers within the same line as the Payee. (Note: To set up a vendor before there are open bills select Set up vendors for bank transfers. You’ll need the account number for the vendor.)

4. Select Enter vendor’s bank account info.
5. Select Next.
6. Enter the vendor’s bank account information.
7. Select Save.

Things to know:#

• We’ll initiate a small test deposit of a penny into your vendor’s bank account. This is done to verify the bank account can receive payments. (Note: If the test deposit is not successful, the bank account entry will be invalidated. A new bank account entry will need to be made for the vendor.)
• After manually adding a vendor’s bank account, the earliest process date that can be selected is 2 business days after the bank account was added. This is to ensure the test deposit is successful. (Note: A federal holiday will add one additional day to processing.)
• If the test deposit is not successful and the bank account is invalidated, the payment will still process. The payment will go out as a check payment.
• If a payment needs to be made immediately, schedule a check payment before adding the vendor’s bank account.

Invite vendors #

There are three ways to invite vendors. They are the following:

Related information #

Online Bill Pay – Adding a Private Vendor
Online Bill Pay – Vendor Invite Widget