Hi there, @BigRedConsulting.

To process a direct deposit for vendors or contractors in QuickBooks Desktop (QBDT), the customer needs to ensure that their QuickBooks Desktop Payroll is active. Also, they can set up direct deposit using QBDT Payroll Basic, Standard, and enhanced as well as the Assisted version of QBDT payroll.

For more information, see this article: Set up and manage direct deposit for your contractors.

Also, If the customer wants to continue without signing up for a payroll subscription, they'll want to check this page: Contractor Payments.

In addition, I do agree with you, BRC. Since the merchant services are for receiving customer payments only, while the ACH paying through direct deposit is for paying the vendors.