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Level 1

Record chargeback in qbo

How do you record a chargeback in QBO?
2 Comments 2

Record chargeback in qbo

Hello @hope-pegram.


Welcome to the Community! Thanks for checking in for help with recording a chargeback in QuickBooks Online. Hopefully, you won’t have to do this very often, but it’s important to know how to do it.


You can record a chargeback in two ways:

  • Process the transaction as a refund.
  • Record it as a business expense (explained below).

Either way, a chargeback transaction shows up on your bank statement as a separate item.


To record the chargeback as a business expense:

  1. Click Create (+) > Check.
  2. Select the checking account that your merchant account processor uses for your credit card transactions.
  3. Select the customer name that you used for the original credit card payment transaction.
  4. Delete the checking number. In its place, enter a note to indicate that this check is actually a chargeback, such as CB.
  5. Enter the total amount of the chargeback item.
  6. Clear the Print later checkbox.
  7. For the Account, choose the account that you charge for the transaction.
  8. Click Save and close.


I've added this handy article for additional reference: Handle chargebacks and retrieval requests for QuickBooks Payments


I’m just a quick reply away if you have any additional questions about recording a chargeback or anything else. Feel free to reach out anytime!

Level 1

Record chargeback in qbo

Chargebacks do not always show as a separate expense on our bank account if we had other cc deposits for that day.  Our cc processor will deduct the amount of the chargeback from the day's deposits, leaving me with a deposit amount with which I have nothing to match. (i.e. cc pmt from a client $7500 on a same day as a $7000 chargeback from another client.  Our processor deposits $500 into our bank that day)  


I was able to access the original deposit (in this case, the $7500) and create a line item in the bottom section using the client's name as "recd from" and "accts receivable" in the account column, then putting the chargeback amount as a negative number in the amount column.  I noted "chargeback" in the description column.  This created an amount due on that client's account (since we disputed the chargeback and the client actually does owe the money), and then the deposit matched the actual amount of the deposit into the bank account for that day. 


When the chargeback is awarded back to us, I will apply it to the account. 


We do not use QB payments, so the article you posted does not apply to our company.  But thanks anyway.  (Incidentally, it is the first thing that comes up when you search for info on chargebacks, but doesn't actually give instructions on recording it - very frustrating!)






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