5 posts tagged with "Payments"

In today’s retail environment, accepting credit and debit cards is no longer optional—it’s practically required. But behind every swipe, tap, or online purchase lies a network of systems and accounts working tirelessly behind the scenes. A key piece of that puzzle is something called a merchant account.

If you’re a small business owner or entrepreneur, here’s a practical guide to understanding what merchant accounts are, how they work, and whether they’re right for your business.

1. What Is a Merchant Account?​

A merchant account is a specialized financial account that acts as an intermediary between your customer’s credit/debit card and your business bank account. Think of it as a secure holding area for funds.

When a customer pays with a card, the money doesn't go directly into your checking account. Instead, it temporarily holds the funds from the transaction while all the necessary approval and verification checks happen. Once the transaction is confirmed, the money is “settled” and transferred (minus any processing fees) into your actual business bank account. Unlike a typical bank account where you can withdraw or deposit freely, a merchant account is a one-way street, designed exclusively to receive and process card transaction flows.

In essence, it’s where the money “parks” during the crucial authorization and verification process.

2. How Does the Merchant Account Process Work?​

It might seem instantaneous to the customer, but a lot happens in the few seconds after a card is used. Let’s walk through a simplified transaction:

1. A customer swipes or taps their card at your store or enters their card information on your website.
2. The transaction data is securely sent to a payment processor, which then forwards it to the acquiring bank that provides your merchant account.
3. The acquiring bank sends the request to the relevant card network (like Visa, Mastercard, or American Express).
4. The card network passes the request to the issuing bank (the customer’s bank) to check for available funds, verify the card's validity, and run fraud checks.
5. If everything checks out, an approval signal is sent back through the entire chain to your merchant account.
6. After a short delay, typically one to two business days, your merchant account transfers the approved funds (after deducting fees) directly to your business bank account.

This entire flow enables you to receive money well before the customer actually pays their credit card bill, as long as all the necessary verifications clear.

3. Why Your Business Needs a Merchant Account​

If you’re still only accepting cash or checks, you might be missing out on significant opportunities. Here are the key benefits of being able to process card payments:

• Customer Convenience: In an increasingly cashless society, many people carry very little cash and expect to pay by card. Not offering this option can be a deal-breaker.
• Increased Sales: Studies have shown that shoppers often spend more when using a credit card compared to cash. Accepting cards can lead to higher average transaction values.
• Professionalism & Credibility: The ability to accept major credit cards gives your business legitimacy and builds trust, which can encourage repeat business.
• Faster Access to Funds: Instead of waiting for a check to clear or a customer to pay off their card, the settlement process moves funds rapidly into your account.

Simply put, you risk turning away valuable customers who just don’t carry enough cash to make a purchase at your store.

4. What to Consider When Setting Up a Merchant Account​

Not all merchant accounts are created equal. As you evaluate your options, here are the main factors to weigh:

• Which Cards You’ll Accept: Will you take Visa, Mastercard, American Express, and Discover? The more card types you accept, the broader your potential customer base.
• Fee Structure: This is crucial. Typical costs can include setup or application fees, monthly maintenance fees, per-transaction fees (often a percentage plus a flat rate), and fees for equipment like terminals or systems.
• Type of Payment Systems: Consider how you’ll take payments. Will you use a traditional in-store terminal, a mobile swiper for on-the-go sales, a full point-of-sale (POS) setup, or online e-commerce payment gateways?
• Your Industry Risk Level: Providers classify industries based on their perceived risk of fraud or chargebacks. Businesses in sectors like travel, supplements, or adult services are often considered “high risk” and may face higher fees or be declined by some providers.
• Security & Compliance: You are responsible for protecting your customers' card information. This means you’ll need to follow the Payment Card Industry Data Security Standards (PCI DSS), a set of rules designed to prevent data breaches.
• Customer Support & Flexibility: What happens when you need help resolving a held payment, a chargeback, or a technical dispute? Having reliable and accessible customer support can be a huge lifesaver.

5. Requirements for Getting a Merchant Account​

Because a merchant account provider takes on financial risk (from potential fraud and chargebacks), they will conduct a thorough underwriting process. You may be asked to provide:

• A valid business bank account with routing and account numbers.
• Financial statements, often for the last one to two years.
• Tax returns or personal banking history, especially if your business is new.
• Your business license or registration documents.
• A clear description of your products, services, and policies (e.g., shipping and returns).
• Evidence that your business meets PCI compliance standards.

Having this documentation prepared in advance will help speed up the application and onboarding process significantly.

6. Payment Service Providers (PSPs): An Alternative Option​

If the idea of managing a standalone merchant account feels too complex or costly, many small businesses turn to a payment service provider (PSP). You’re likely already familiar with the big names: Stripe, PayPal, and Square are all examples of PSPs. Here’s how they differ from a traditional merchant account.

Advantages of PSPs:

• All-in-One Solution: A PSP bundles everything you need—the payment processing, security, and settlement—into one service.
• Simplified Pricing: Instead of a complex web of different fees, you often pay a straightforward, flat per-transaction rate.
• Fast Setup: You can typically get started almost immediately, without the lengthy vetting process of a dedicated merchant account.
• Ease for E-commerce: Many PSPs are built from the ground up for online stores and mobile payments, with easy integrations.

Trade-offs:

• Less Control: Your funds and account settings are managed under the PSP’s master account, giving you less direct control.
• Higher Per-Transaction Costs (Sometimes): The simple flat rate can be more expensive than a dedicated merchant account, especially for businesses with high sales volumes.
• Less Personalized Customer Support: Since PSPs serve millions of clients, resolving holds or other issues can sometimes be slower and more automated.
• Account Risk: Because you are part of a shared system, providers can be stricter about account suspensions or terminations if they detect activity that violates their terms of service.

7. Which Approach Is Best for Your Business?​

So, should you get a dedicated merchant account or go with a PSP? Here’s a quick guide to help you decide.

For businesses with low transaction volumes, PSPs often make the most economic sense. However, as your sales grow, a dedicated merchant account could offer better margins, more flexibility, and stronger control over your payment processing.

8. What to Watch Out for (Risks & Challenges)​

Whichever path you choose, be aware of potential pitfalls:

• Hidden Fees or Fine Print: Read every contract carefully. Some providers hide extra charges or clauses that can be costly down the line.
• Chargebacks: When a customer disputes a charge, the funds can be held or reversed. You may also face additional penalty fees for each chargeback.
• Account Holds or Freezes: Providers may temporarily suspend your processing if they detect suspicious activity, which can disrupt your cash flow.
• Security & Compliance Risks: Failing to meet PCI requirements can lead to steep penalties and severe damage to your business’s reputation.
• Lock-in or Long-Term Contracts: Beware of agreements that require you to stay with a provider for long periods, as this can limit your ability to switch if you find a better option.

9. Tips for a Smooth Setup​

• Shop Around: Get proposals from several providers and compare their fee structures, contract terms, and features.
• Negotiate: Don’t be afraid to negotiate. Some fees can be reduced, especially if you have a solid sales history or growing volume.
• Use a Trusted Payment Processor: Your payment gateway is just as important as your merchant account. Choose a reliable partner.
• Stay Compliant: Make PCI DSS compliance a priority. Enforce strong security practices and monitor your chargeback ratios closely.
• Monitor Performance: Regularly review your processing statements to understand your effective rate, settlement times, and overall support quality.
• Plan for Growth: Choose a provider that can scale with you. What works for your business today may not be the right fit in two years.

10. Final Thoughts​

Accepting card payments is essential in today’s marketplace, but the infrastructure behind it requires careful consideration. A merchant account is one of the foundational building blocks that allows your small business to securely, reliably, and rapidly receive payments from your customers.

For many startups and small retailers, using a payment service provider is a convenient and effective launch pad. But as your business scales, taking the time to evaluate a dedicated merchant account could unlock lower costs, greater control, and better overall flexibility.

If you’re evaluating your options, the best move is to do your research. Request quotes from multiple providers, understand all the associated fees, compare features, and ultimately choose the solution that best aligns with your transaction volume, growth plans, and risk profile.

Running a successful wedding planning business requires more than just creativity and organizational skills. Behind every stunning ceremony and flawless reception is a solid financial foundation that keeps your business thriving. Whether you're just starting out or looking to streamline your existing operations, mastering your finances is crucial for long-term success.

The Unique Financial Challenges Wedding Planners Face​

Wedding planning comes with its own set of financial complexities that set it apart from other service businesses. You're not just managing your own business expenses—you're coordinating payments to dozens of vendors, tracking client deposits, managing multiple budgets simultaneously, and dealing with seasonal cash flow fluctuations.

Multiple Moving Parts​

Unlike businesses with straightforward transactions, wedding planners typically juggle:

• Client retainers and milestone payments
• Vendor deposits and final payments
• Commission structures from preferred vendors
• Emergency budget allocations for last-minute changes
• Refunds and cancellations
• Sales tax on various services (which varies by state)

Each wedding represents a mini-project with its own budget, timeline, and financial tracking requirements. Multiply this by multiple clients at various stages of planning, and you can see how financial management quickly becomes overwhelming.

Essential Financial Systems Every Wedding Planner Needs​

1. Separate Business and Personal Finances​

This is non-negotiable. Open a dedicated business bank account and get a business credit card. Mixing personal and business expenses creates a nightmare for tax time and makes it nearly impossible to understand your true business profitability.

Pro tip: Consider opening a separate savings account for tax reserves. Set aside 25-30% of your income to cover quarterly estimated taxes and avoid year-end surprises.

2. Client Payment Tracking System​

Create a clear system for tracking client payments from initial deposit to final balance. Your system should include:

• Payment schedule with due dates
• Amount received and outstanding balance
• Payment method (check, wire transfer, credit card)
• Receipt numbers for reference

Many wedding planners use spreadsheets, but dedicated wedding planning software like HoneyBook, Aisle Planner, or Dubsado can automate much of this process and reduce errors.

3. Vendor Payment Management​

You'll likely be making payments to 15-30 vendors per wedding. Staying organized prevents missed payments, late fees, and damaged vendor relationships.

Create a master vendor payment schedule that includes:

• Vendor name and service
• Deposit amount and date paid
• Final payment amount and due date
• Payment method
• Contract terms and cancellation policies

Important consideration: Clarify with clients whether you'll be making payments on their behalf or if they'll pay vendors directly. This affects your bookkeeping, liability, and tax reporting.

Budget Management Strategies That Work​

Create Templates for Different Budget Levels​

Develop standardized budget templates for various price points ($20K, $50K, $100K+ weddings). This helps you:

• Quickly generate accurate estimates for new clients
• Ensure you're not forgetting any categories
• Track typical spending patterns
• Identify areas where couples commonly overspend

Build in Buffer Zones​

Always include a 10-15% contingency in every wedding budget for:

• Last-minute guest count changes
• Unexpected weather-related expenses
• Rush fees for altered timelines
• Price increases from vendors
• "Must-have" additions clients discover late in planning

Track Actual vs. Budgeted Expenses​

For each wedding, maintain a running comparison of budgeted versus actual costs. This data becomes invaluable for:

• Improving future budget estimates
• Identifying which vendors consistently run over budget
• Understanding your own time costs per wedding
• Demonstrating value to clients when you save them money

Understanding Your True Business Costs​

Many wedding planners focus solely on client budgets while neglecting their own business finances. To build a sustainable business, you need to understand your true costs.

Calculate Your Fully Loaded Hourly Rate​

Track time spent on each phase of wedding planning:

• Initial consultations and contract negotiations
• Vendor research and coordination
• Client meetings and communications
• Site visits and venue walkthroughs
• Wedding day coordination and setup
• Post-wedding follow-up

Once you know your hours, factor in all business expenses:

• Software subscriptions and tools
• Insurance (liability, property, professional)
• Marketing and website costs
• Transportation and travel
• Office supplies and equipment
• Professional development
• Taxes and accounting fees

This reveals whether your pricing actually generates profit or if you're essentially working for free after expenses.

Seasonal Cash Flow Management​

Wedding season creates feast-or-famine cash flow cycles that require careful planning.

Peak Season (May-October)​

During busy months, you'll have more revenue but also higher expenses. Resist the temptation to overspend:

• Set aside money for slow months
• Prepay annual expenses when cash is abundant
• Build emergency reserves
• Make extra tax payments to avoid large year-end bills

Off-Season (November-April)​

Use slower periods strategically:

• Focus on marketing for next year's bookings
• Update systems and templates
• Take professional development courses
• Plan your own vacation time
• Conduct annual financial review

Consider offering off-season discounts or weekday wedding packages to generate revenue during traditionally slow periods.

Tax Considerations for Wedding Planners​

Know Your Business Structure​

Your tax obligations differ based on whether you operate as:

• Sole proprietor
• LLC (taxed as partnership or S-corp)
• Corporation

Each has different reporting requirements, liability protection, and tax implications. Consult with a tax professional to choose the best structure for your situation.

Sales Tax Complexity​

This is where many wedding planners get tripped up. Sales tax rules vary significantly by state and even by city. You need to understand:

• Whether your planning services are taxable in your state
• If you're reselling services (and therefore must collect sales tax)
• Rules for destination weddings in other states
• When to provide resale certificates to vendors

Critical point: If you're paying vendors on behalf of clients and marking up services, you may be considered a reseller and must collect sales tax from clients on the full amount.

Deductible Expenses​

Common deductions for wedding planners include:

• Home office (if you meet IRS requirements)
• Vehicle mileage for business travel
• Client meals and entertainment (50% deductible)
• Professional subscriptions and memberships
• Wedding shows and networking events
• Continuing education
• Marketing and advertising
• Phone and internet (business portion)

Keep meticulous records with receipts, dates, and business purposes documented.

Quarterly Estimated Taxes​

As a self-employed wedding planner, you're responsible for quarterly estimated tax payments (typically due April 15, June 15, September 15, and January 15). Calculate 25-30% of your net income each quarter and make timely payments to avoid penalties.

Automation and Tools That Save Time​

The right tools can dramatically reduce time spent on financial management:

Payment Processing​

Services like Square, Stripe, or PayPal enable:

• Online invoice payments
• Automated payment reminders
• Integration with bookkeeping software
• Reduced check-handling time

Bookkeeping Software​

Even basic accounting software can:

• Automatically import bank transactions
• Categorize expenses
• Generate profit/loss statements
• Track mileage
• Create professional invoices
• Prepare tax-ready reports

Popular options include QuickBooks Online, FreshBooks, Wave (free for basic use), or Xero.

Receipt Management​

Apps like Expensify, Shoeboxed, or Receipt Bank let you:

• Photograph receipts on the go
• Automatically extract data
• Organize by category or project
• Link receipts to transactions

This eliminates the shoebox of crumpled receipts at tax time.

Financial Red Flags to Watch For​

Consistently Late Client Payments​

If multiple clients regularly miss payment deadlines, your payment terms may be too lenient. Consider:

• Requiring larger upfront deposits
• Implementing late fees
• Sending automated payment reminders
• Requiring final payment 2-4 weeks before the wedding

Shrinking Profit Margins​

If revenue is growing but profit isn't, investigate:

• Scope creep (providing extra services without additional fees)
• Inefficient processes that waste billable time
• Underpriced services
• Uncategorized or forgotten expenses

Cash Flow Crunches​

If you're profitable on paper but struggling to pay bills, you may have:

• Too much money tied up in client deposits you've already spent
• Poor accounts receivable collection
• Seasonal planning issues
• Pricing that doesn't cover timing of expenses

Building Financial Confidence​

Many creative entrepreneurs feel intimidated by the financial side of business, but financial management is a learnable skill. Start with these steps:

1. Schedule a weekly finance hour: Dedicate one hour weekly to reviewing transactions, sending invoices, and updating your books. Consistency prevents overwhelming backlogs.

2. Review monthly reports: Generate profit/loss statements monthly. Look for trends, identify problems early, and celebrate wins.

3. Set quarterly goals: Review financial performance each quarter and adjust pricing, expenses, or operations as needed.

4. Work with professionals: A good accountant or bookkeeper who understands wedding industry specifics can save you far more than they cost through tax savings, error prevention, and strategic advice.

5. Invest in education: Take courses on business finance, attend workshops, or join wedding planner associations that offer financial resources.

Planning for Growth​

As your business grows, your financial systems must evolve:

When to Hire Help​

Consider hiring a bookkeeper when:

• You're spending 5+ hours weekly on financial tasks
• You're making errors or missing deadlines
• You want to focus on revenue-generating activities
• Your business complexity has increased

When to Raise Prices​

Indicators it's time to increase rates:

• You're booked solid months in advance
• Profit margins are healthy but you're leaving money on the table
• You've gained experience and credentials
• Market rates have increased
• Your costs have risen significantly

Expanding Service Offerings​

Financial tracking helps you identify which services are most profitable:

• Full-service planning vs. day-of coordination
• Destination weddings vs. local events
• Luxury vs. budget-conscious clients
• Additional services (rehearsal dinner planning, post-wedding brunches)

Double down on profitable services and phase out or reprice underperforming ones.

Final Thoughts​

Strong financial management isn't just about staying organized—it's about building a sustainable, profitable business that allows you to create magical experiences for couples while also taking care of yourself and your family.

By implementing solid systems, using the right tools, understanding your numbers, and working with qualified professionals when needed, you can transform financial management from a dreaded chore into a strategic advantage that sets your wedding planning business apart.

Remember: every successful wedding planner is also a successful business owner. The couples you serve deserve your creative brilliance—and you deserve a business that rewards your hard work with financial stability and growth.

What financial management strategies have worked best for your wedding planning business? Every planner's situation is unique, so adapt these guidelines to fit your specific circumstances and always consult with qualified financial professionals for personalized advice.

International contractors, remote teammates, or family abroad can make cross-border payments part of your regular bookkeeping. Fees and currency swings add complexity, but a little planning helps you pick the right payment rail and keep your Beancount ledger accurate.

Step 1: Clarify the Purpose and Frequency​

Start by recording why you are sending the money and how often it will happen. Paying a freelancer once a quarter has a different risk profile than reimbursing a subsidiary every week. Document the business purpose in Beancount with metadata like payee, project, or invoicenumber so you can trace each transfer during reviews or audits.

Step 2: Compare the Main Transfer Options​

Most cross-border transfers fall into three buckets. Evaluate each one based on speed, cost, and the level of documentation it provides for your ledger.

Bank Wire Transfers​

Traditional bank wires ride the SWIFT network. They are reliable and deliver strong compliance records. Expect higher fixed fees ($15–$50 USD per wire) and potential intermediary bank charges. They work best when:

• You already have a relationship with the receiving bank.
• The amount is large enough that fixed fees are a small percentage of the total.
• You need a paper trail that satisfies auditors or investors.

In Beancount, capture wires with a two-step entry:

2025-09-10 * "Wire to Berlin Studio" "September design sprint"
  Assets:Bank:Operating           -2500.00 USD
  Expenses:Professional-Services   2450.00 EUR @@ 2500.00 USD
  Expenses:Bank-Fees                 35.00 USD
  Assets:Bank:Operating              15.00 USD

The example splits out bank fees and uses a cost basis notation to lock the EUR amount to the USD cash impact.

Fintech Payment Platforms​

Specialized platforms designed for small businesses bundle competitive FX spreads with lower transfer fees. Many integrate with accounting tools or provide CSV exports you can import into Beancount. They are ideal when:

• You pay multiple vendors in the same currency each month.
• You want to lock in an exchange rate ahead of payroll or invoice runs.
• You need automation hooks (APIs, webhooks) to reconcile payments quickly.

Record these transfers by importing the platform statement, then tag each posting with the platform name so you can trace disputes or chargebacks.

Multi-Currency Accounts and Digital Wallets​

Holding balances in multiple currencies lets you pick the timing of conversions. Digital wallets shine when you receive and send money in the same foreign currency. Watch for:

• Dormancy fees if balances sit unused.
• Regulatory limits on business use in certain countries.
• The need to mark-to-market balances at month-end in your Beancount ledger.

Model wallets as separate asset accounts per currency. Revalue them with a price directive so your balance sheet reflects current FX rates.

Step 3: Account for Exchange Rates and Fees​

Every transfer includes at least two components: the amount you send and the cost to convert or deliver it. Break those costs apart in Beancount:

• Use cost basis annotations (@@) or price directives (@) to lock in the exchange rate used for each transaction.
• Post fees to Expenses:Bank-Fees or a dedicated Expenses:FX-Spread account so you can analyze them later.
• If you use forward contracts or limit orders, add metadata (method: forward) to trace the hedge strategy.

Step 4: Build a Documentation Trail​

International compliance requirements change frequently. Keep the following artifacts handy:

1. Invoices or contracts that justify the transfer amount.
2. Transfer confirmations with reference numbers and FX rates.
3. Communications with the recipient about receipt of funds.

Attach these to your Beancount entries using document directives so auditors can follow the money without digging through email threads.

Step 5: Review and Reconcile Monthly​

Cross-border transfers can take days to settle. Schedule a monthly reconciliation to match your Beancount ledger against bank or platform statements. Focus on:

• Transfers still in transit at month-end.
• FX gains or losses on multi-currency balances.
• Fees that creep up over time and warrant a pricing review.

Checklist Before You Hit Send​

• Confirm the recipient’s banking details or wallet address.
• Validate the transfer limit with your bank or platform.
• Capture the projected FX rate and total cost in Beancount.
• Queue up supporting documents for compliance.

Staying methodical keeps international payments from turning into a reconciliation nightmare. By choosing the rail that matches your speed, cost, and documentation needs—and by capturing every detail in Beancount—you build a ledger that stays audit-ready no matter where your money travels.

Electronic funds transfers (EFTs) quietly move most of the money in a modern business. Rent, payroll, customer payouts, even reimbursements are increasingly routed through digital networks instead of paper checks. That speed and convenience comes with new bookkeeping expectations: you have to follow the money before, during, and after it leaves your bank.

This guide unpacks how the major EFT rails operate, what to look for in the settlement timeline, and how to model the entire flow in Beancount so your ledger always tells the truth about cash.

What is an EFT payment?​

An electronic funds transfer is any movement of money between bank accounts that happens via digital messaging rather than cash or paper instruments. The umbrella covers ACH debits and credits, wire transfers, debit card transactions, peer-to-peer payments, instant payout products, and more. Instead of carrying a physical authorization, the sender instructs their bank to push or pull funds through a shared network.

The key bookkeeping implication: the timestamp when you initiate an EFT, the date it posts on your bank statement, and the date the counterparty recognizes the cash are often different. You need to record the intent, the in-flight balance, and the final settlement to keep your balances reliable.

Popular EFT rails for small businesses​

• ACH (Automated Clearing House). Batch-based transfers that settle in one to three business days. Common for payroll, vendor invoices, and recurring billing because of predictable fees.
• Same Day ACH. An accelerated flavor that still clears through NACHA but credits the destination account the same day if submitted before the network deadlines. Useful for urgent payroll corrections or supplier rush payments.
• Wire transfers. Real-time gross settlement with higher fees, typically used for large, time-sensitive transactions or international deals.
• Debit and virtual card networks. Card-not-present sales and payouts from platforms (Stripe, PayPal, marketplaces) ultimately sweep through EFT settlement, though a card processor stands in the middle.
• Instant payout services. Offer immediate movement to a debit card or account using RTP or push-to-card rails. Fees are higher but valuable for gig payouts or emergency disbursements.
• Bank-to-bank payment links. Open banking APIs and RTP allow customers to authorize a one-off pull directly from their accounts with instant confirmation and finality.

How an EFT moves from initiation to settlement​

1. Authorization. You (or your platform) capture the customer or vendor’s consent, storing the banking details or tokenized credentials.
2. Submission. Your bank or payment processor bundles instructions and submits them to the appropriate network (ACH, RTP, SWIFT, etc.).
3. Network processing. The network validates the transaction, checks for sanctions or errors, and schedules settlement.
4. Settlement. Funds move between the participating financial institutions. Your bank reflects the pending amount, then the posted balance when cleared.
5. Notification and reconciliation. Statements, webhooks, or CSV exports confirm the final figures and any associated fees or chargebacks.

Your ledger should mirror that timeline. Use supporting accounts (like clearing or undeposited funds) when money is in flight so cash-on-hand never looks higher or lower than reality.

Recording EFT activity in Beancount​

Customer payments collected via ACH​

When a platform deposits card or ACH payouts, fees are usually withheld before the deposit reaches your bank. Record the gross sale, the fees, and the net cash in a single transaction:

2025-09-03 * "Stripe Payout" "August card sales"
  Assets:Bank:Operating                4,850.00 USD
  Expenses:Fees:PaymentProcessors        150.00 USD
  Income:Sales                        -5,000.00 USD

If the payout is marked as pending for a day before it posts, add an intermediate account:

2025-09-03 * "Stripe Payout" "August card sales"
  Assets:Clearing:Stripe               4,850.00 USD
  Expenses:Fees:PaymentProcessors        150.00 USD
  Income:Sales                        -5,000.00 USD

2025-09-04 * "Stripe Payout Settlement"
  Assets:Bank:Operating               -4,850.00 USD
  Assets:Clearing:Stripe               4,850.00 USD

Vendor payments sent via ACH or wire​

Separate the approval date from the bank posting date so you can monitor cash commitments:

2025-09-05 * "ACH Payment" "Pay Greenline Supplies"
  Expenses:CostOfGoodsSold             1,920.00 USD
  Assets:Clearing:OutboundACH         -1,920.00 USD

2025-09-06 * "ACH Settlement" "Greenline Supplies"
  Assets:Clearing:OutboundACH          1,920.00 USD
  Assets:Bank:Operating               -1,920.00 USD

For wires, swap in a dedicated clearing account to capture the fee separately:

2025-09-07 * "Wire Fee"
  Expenses:Fees:Bank                     25.00 USD
  Assets:Bank:Operating                 -25.00 USD

Payroll direct deposits​

Payroll processors often withdraw one lump sum for net pay plus taxes. Split the entry so liabilities zero out when the EFT posts:

2025-09-10 * "Payroll Funding" "September cycle"
  Expenses:Payroll:Wages             18,500.00 USD
  Expenses:Payroll:Taxes              4,200.00 USD
  Liabilities:Payroll:TaxesPayable   -4,200.00 USD
  Assets:Clearing:Payroll           -18,500.00 USD

2025-09-11 * "Payroll Settlement"
  Assets:Clearing:Payroll            18,500.00 USD
  Assets:Bank:Operating            -18,500.00 USD

Reconciliation checklist for EFTs​

• Match every payout or debit against the bank statement date, not just the processor report.
• Confirm that clearing accounts return to zero; lingering balances signal stuck transactions.
• Capture gateway fees, chargebacks, and reversals in the same period they occur.
• Store the processor’s confirmation number as metadata (txn_id or eft_id) for audit trails.
• Schedule periodic reviews of ACH returns (R01–R85 codes) so you can re-initiate payments quickly.

Controls and automation ideas​

• Configure bank feed imports to flag EFT transactions above a threshold and require secondary review.
• Use Beancount’s balance directives to enforce the expected clearing account totals at month end.
• Attach YAML metadata to note processing times (settlement_days: 2) and calculate cash forecasting scenarios in Fava or downstream analytics.
• Export NACHA or processor event logs to version control so you maintain an immutable history outside the banking portal.

Frequently asked questions​

Are EFT payments secure? They rely on encrypted bank-to-bank messaging and regulated networks. Your internal controls—like dual approval for new beneficiaries—are the most important safeguard.

How fast do EFTs clear? ACH is usually T+1 or T+2, wires settle same day, and instant payment products clear in seconds if both banks support the rail. Record the exact posting date to avoid timing mismatches.

Do I need special accounts in Beancount for EFTs? Not mandatory, but clearing accounts make it easy to spot delays and reconcile complex payouts. Think of them as a staging area that mirrors the processing network.

Keeping EFT activity transparent in Beancount gives you real-time visibility into working capital. With accurate postings, you can forecast cash, respond to customer inquiries faster, and close the books without hunting through bank portals.

Choosing a credit card processor is part math, part operations. The right partner simplifies your workflow, while the wrong one can slowly bleed your margins through hidden fees and create bookkeeping nightmares. Transaction fees, payout timing, hardware costs, contracts, and data export quality all affect your bottom line—and your accounting workflow. This guide highlights popular U.S. options in 2025 and adds Beancount-friendly tips so you can keep your ledger clean from day one.

All pricing snapshots below are published U.S. rates as of September 2025 and may vary by plan, industry, and transaction volume. Always confirm current pricing on the provider’s official site.

How to Choose: A Quick Framework​

Before diving into brand names, use this framework to narrow your search. Your business's unique transaction profile is the most important factor.

• Transaction Mix

  • Mostly in-person, low average ticket: Your priority is speed and simplicity at the point of sale. Favor simple flat-rate POS systems like Square, Zettle, Clover, or Chase.
  • Mostly online/SaaS or multi-country: You need robust APIs, international payment methods, and developer-friendly tools. Look at Stripe, Adyen, or Braintree.
  • $30k–$100k+ monthly volume with a stable mix: At this scale, flat-rate pricing becomes expensive. It's time to consider interchange-plus (Helcim, Dharma) or membership (Stax, Payment Depot) models to lower your effective rate.

• Total Cost of Ownership (TCO) Don't just look at the advertised percentage. Calculate your effective rate by combining the percentage fee, fixed cents-per-transaction fee, monthly account fees, hardware costs, and potential chargeback fees. This gives you a true picture of your costs.

• Payout Cadence How quickly do you need your cash? A next-day deposit schedule versus a two-day rolling window (T+2) can significantly impact your cash-flow forecasting. We'll cover how to model this in Beancount below.

• Lock-In Avoid long-term contracts with hefty early termination fees (ETFs). Look for month-to-month billing and, crucially, the ability to easily export your transaction data via CSV or an API. Your data is your own; don't let a processor hold it hostage.

The Shortlist: Who It’s Best For​

Stripe — Best for Online-First and Platforms​

Stripe is the gold standard for internet businesses. Its excellent APIs, pre-built Checkout and Link components, robust subscription management, and global payment method support make it incredibly versatile. For physical sales, its Terminal line of hardware integrates seamlessly.

• Pricing Snapshot: Online transactions are typically 2.9% + 30¢ (domestic). In-person payments via Terminal are 2.7% + 5¢. International cards and currency conversion may incur surcharges.
• Payouts: Operates on a configurable, rolling schedule. Most U.S. businesses see funds available on a T+2 basis (two business days after the transaction).

Square — Best Turnkey POS for New Storefronts​

Square excels at getting new retail and service businesses up and running quickly. With a free and intuitive POS app, a simple hardware lineup, and fast onboarding, it's a favorite for cafes, boutiques, and service providers.

• Pricing Snapshot: In-person is 2.6% + 15¢, online is 2.9% + 30¢, keyed-in is 3.5% + 15¢, and invoices are 3.3% + 30¢.
• Payouts: Standard next-business-day transfers are free. For urgent cash needs, instant or same-day transfers are available for an additional 1.75% fee.

PayPal Zettle — Best “Micro-Merchant” Mobile POS​

Perfect for sellers at farmers' markets, pop-up shops, or conventions. Zettle offers low-cost entry hardware that integrates smoothly with the broader PayPal ecosystem, making it easy to manage funds alongside your online PayPal sales.

• Pricing Snapshot: In-person card transactions are 2.29% + 9¢. Keyed, invoice, and online transactions have separate rates.

Braintree (by PayPal) — Best for PayPal/Venmo + Cards Under One API​

Braintree is a developer-centric platform that allows businesses to accept credit cards, PayPal, Venmo, and other digital wallets through a single integration. It's a strong choice for e-commerce sites that want to offer customers a wide array of payment options.

• Pricing Snapshot: Standard rate for cards and most digital wallets is 2.89% + 29¢. Venmo is often 3.49% + 49¢. Discounts for non-profits and custom pricing for high-volume businesses are available.

Helcim — Best Transparent Interchange-Plus with Volume Discounts​

Helcim offers interchange-plus pricing with no monthly fee, making it an accessible option for businesses graduating from flat-rate models. Its pricing automatically gets cheaper as your processing volume increases, with clear tiers published on its site.

• Pricing Snapshot: Margins are typically around Interchange + 0.40% + 8¢ (card-present) and Interchange + 0.50% + 25¢ (card-not-present), with margins decreasing at higher volumes.

Dharma Merchant Services — Best Small-to-Mid B2B Interchange-Plus​

Dharma is known for its fair interchange-plus pricing and excellent support, with a focus on B2B transactions. It helps businesses qualify for lower Level 2 and Level 3 processing rates, which can lead to significant savings on corporate card transactions.

• Pricing Snapshot: Card-present is IC + 0.15% + 8¢, and e-commerce is IC + 0.20% + 11¢, plus a modest monthly fee.

Stax — Best Subscription (Membership) Pricing at Higher Volumes​

Stax uses a membership model: you pay a flat monthly subscription fee and in return get access to direct interchange rates with a "0% markup." This can be extremely cost-effective once your monthly volume is high enough to justify the subscription cost.

• Pricing Snapshot: Plans start at $99/month, with tiers based on annual processing volume.

Payment Depot — Membership Alternative to Lower Processing Costs​

Similar to Stax, Payment Depot offers interchange-plus rates under a membership model. It positions itself as a way for businesses to access wholesale processing rates without percentage markups, with an emphasis on no long-term contracts or early termination fees.

• Pricing Snapshot: Membership-style IC+ pricing. Plans are typically provided via a custom quote.

Shopify Payments — Best if You Already Run on Shopify​

If your business runs on Shopify, using Shopify Payments is a no-brainer. It's tightly integrated with your store, provides excellent fraud analysis tools, and enables the high-converting Shop Pay checkout. Using a third-party gateway on Shopify incurs additional fees.

• Pricing Snapshot: Rates are tied to your Shopify plan. Online fees range from ~2.5% to 2.9% + 30¢, while in-person rates are around 2.4% to 2.6% + 10¢ on higher tiers.

Toast — Best All-in-One for Restaurants​

Toast is purpose-built for the food and beverage industry. Its platform combines durable, restaurant-grade hardware with software for kitchen display systems (KDS), online ordering, inventory, and even payroll add-ons.

• Pricing Snapshot: A pay-as-you-go plan is available at ~3.09%–3.69% + 15¢. If you pay for hardware upfront, rates can be as low as 2.49% + 15¢ (card-present) and 3.50% + 15¢ (card-not-present).

Clover (Fiserv) — Best POS Hardware Variety (Retail/Service)​

Clover offers one of the broadest hardware lineups in the industry, from the mobile Go and Flex to the countertop Mini and Station. This variety makes it a flexible choice for retail stores and service businesses that need a specific form factor.

• Pricing Snapshot: Rates vary widely by plan and device, but in-person rates are commonly advertised as low as 2.6% + 10¢.

Lightspeed Payments — Best Mid-Market Retail POS with Deep Inventory​

Lightspeed is a powerhouse for retail businesses with complex inventory needs. Its integrated payments system works seamlessly with its advanced POS features, providing a unified platform for sales and stock management.

• Pricing Snapshot: A frequently cited U.S. reference rate is ~2.6% + 10¢ for in-person and ~2.9% + 30¢ for card-not-present transactions.

Authorize.Net — Best Standalone Gateway (Bring Your Own Merchant Account)​

A long-standing and trusted name, Authorize.Net is a payment gateway that connects your website to your merchant account. This is for businesses that have already negotiated a direct merchant account with an acquiring bank and just need the technology layer to process online payments.

• Pricing Snapshot: All-in-one: $25/mo + 2.9% + 30¢. Gateway-only: $25/mo + 10¢ per transaction, plus a small daily batch fee.

Chase Payment Solutions — Best Bank-Integrated POS & Fast Deposits​

For businesses that bank with Chase, their payment solutions offer a compelling advantage: the potential for same-day deposits into a Chase business checking account at no extra cost. This tight integration simplifies cash flow management.

• Pricing Snapshot: Card-present is 2.6% + 10¢, while keyed-in sales and payment links are 3.5% + 10¢.

Beancount: Model Your Payouts and Fees Cleanly​

Plain-text accounting shines when you can model real-world financial flows precisely. For payment processors, the key is using a "clearing account" to track money from the moment of sale until it lands in your bank. This preserves your gross revenue figures and makes reconciliation trivial.

Example Chart of Accounts:

Assets:Bank:Operating
Assets:Processors:Stripe      ; A clearing account for each processor
Income:Sales
Expenses:ProcessingFees
Liabilities:SalesTax:Payable

Pattern A: “Net Deposit” Processors (Most Flat-Rate)​

Most processors batch your sales, subtract their fees, and deposit the net amount. Your job is to record the gross sale first, then account for the deposit and the fee. A $100 sale with a $2.90 fee becomes:

2025-09-08 * "Online order #8421"
  Assets:Processors:Stripe               100.00 USD
  Income:Sales                          -100.00 USD

2025-09-09 * "Stripe payout"
  Assets:Bank:Operating                   97.10 USD
  Expenses:ProcessingFees                  2.90 USD
  Assets:Processors:Stripe               -100.00 USD

Why this pattern is essential: It correctly records $100 in Income:Sales and $2.90 in Expenses:ProcessingFees. This is critical for analyzing your true gross revenue and is exactly what you need to reconcile your books with the processor's 1099-K form at year-end.

Pattern B: “Daily Batch” with Line-Item Fees​

Some POS systems (like Toast or Clover) will show a single large deposit for a day's sales, with fees deducted as separate line items in their report. The principle is the same: balance the clearing account to zero.

2025-09-08 * "Toast batch — store #1"
  Assets:Bank:Operating                  1,943.55 USD
  Expenses:ProcessingFees                   56.45 USD
  Assets:Processors:Toast               -2,000.00 USD

Pattern C: “Membership” Pricing (Stax/Payment Depot)​

For membership models, the monthly subscription is a separate operating expense. You book it directly, while the much smaller per-transaction fees are handled using Pattern A or B.

2025-09-01 * "Stax subscription"
  Expenses:ProcessingFees                  99.00 USD
  Assets:Bank:Operating                   -99.00 USD

Importing & Reconciling Tips​

• One Clearing Account Per Processor: Create Assets:Processors:Stripe, Assets:Processors:Square, etc. If you have multiple locations, consider Assets:Processors:Toast:Store1 to isolate activity.
• Mind the Payout Cadence: A sale on Friday might not hit your bank until Tuesday. This lag is why the clearing account is so important for accurate cash forecasting.
• Automate Your Imports: Every provider offers CSV exports. Write simple Python scripts or use Fava's importer functionality to map the columns (date, gross amount, fees, net deposit) to Beancount transactions.
• Handle Sales Tax Correctly: Sales tax is not income. Split it out to Liabilities:SalesTax:Payable at the time of sale. Most POS reports provide this breakdown.
• Book Chargebacks Promptly: When a chargeback occurs, the processor debits your account. Book a reversal to Income:Sales for the sale amount and a separate entry to Expenses:ProcessingFees for the chargeback fee.

Quick Comparison Snapshot​

Which One Should a Beancount User Pick?​

• For the simplest setup with daily auto-payouts: Start with Square or Zettle. Their reports are clean and easy to import.
• For developer work, subscriptions, or multiple payment methods: Stripe or Braintree are your best bets due to their powerful APIs.
• If you process ≥$30k/month with a stable card mix: It's time to do the math. Price out Helcim (IC+) versus Stax/Payment Depot (membership) to calculate your true effective rate.
• For a restaurant POS: Compare Toast and Clover/Lightspeed, paying close attention to contract terms and hardware financing.
• If you're already on Shopify: Use Shopify Payments to avoid paying extra gateway fees.
• For same-day deposits into your operating account: Chase QuickAccept linked to a Chase business checking account is the clear winner.

Final Beancount Checklist​

• Create Assets:Processors:* clearing accounts for each processor and location.
• Always record gross sales and separate fees, even if your bank deposit is a net amount.
• Match payout dates and batch IDs from the processor's CSV report to your clearing account transactions.
• Automate your workflow by writing small importers to map CSV columns to Beancount postings.
• Review chargebacks weekly and post the reversal and fee on the day they are debited by the processor.