QB invoice shows PAID via Bank Transfer but in Payment screen there is a hyperlink ‘Transaction processed’ when selected shows Transaction Declined and no $ recvd in bank

Hi there, leila1,

I'm here to help handle a rejected customer's bank transfer payment in QuickBooks Online.

To start, let's keep your books in order by following the five (5) steps outlined below for your guidance.

Step 1: Figure out where the failed payment is in QuickBooks.

This will help determine your next steps.

1. Click + New from the left navigation bar.
2. Select Bank Deposit under Other.
   
3. Review the "QuickBooks Payments" section.
4. Look for the payment on the list. If you see it, it isn't deposited yet. If you don't, it is deposited.

Step 2: Create a service item to track the rejected bank transfer.

1. Click the Gear ⚙ icon at the right top.
2. Select Products and Services under Lists.
3. Click New, then Service:
       * Name - Rejected bank transfer
       * Description - Bank transfer payment received rejected by the bank
4. If the bank deposit is deposited, select the account where it's deposited for the Income account.
5. If the bank deposit isn't deposited, select Undeposited funds for the Income account.
   
6. Click Save and close.

Step 3: Create a new invoice to record the rejected payment.

This will keep your income and accounts receivables accounts accurate.

1. Click + New from the left navigation bar.
2. Select Invoice under Customers.
3. Enter the name of the customer.
4. Add the item you've created in Step 2.
5. Enter the total amount of the rejected payment. Make sure Tax is not selected.
   
6. Click Save and close.

Step 4: Move the original payment to the invoice you just created.

You need to remove the payment from the original invoice since it didn't go through. This will move the failed payment to the new invoice.

1. Open the old invoice, then click the Payment link to open the open the rejected payment.
   
2. Uncheck the original invoice, then select the new one you've created in Step 3.
   
3. Click Save and close.

Step 5: (Optional) Charge your customer for the failed payment fee.

This is applicable if you were charged for a returned payment and want to pass it on to the customer.

1. Go back to the Gear ⚙ icon, then select Products and Services.
2. Click New, then Service.
3. In the Name field, enter "Returned Bank Transfer fee".
4. From the Income account drop-down, add an income account called Returned Bank Transfer Fees. You can also select an expense account you've already use to track bank charges.
5. Click Save and close.
6. After that, open the new invoice and add this item.
7. Enter the amount of the fee, then resend it to your customer.

You can also contact our Merchant Service Team so they can check what's causing the bank transfer payment to fail.

Let me know if there's anything else you need and I'd be happy to help you out.