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Fix a rejected bank transfer payment in QuickBooks Online

SOLVEDby QuickBooks1663Updated November 28, 2023

Learn how to fix a rejected or failed bank transfer payment in QuickBooks Online.

Bank transfer payments fail because of incorrect bank info or insufficient funds. Here’s how you can handle this issue to keep your books in order.

Note: See record a bounced check for issues with paper checks.

  1. ​Select + New, then select Bank deposit. All the undeposited payments will show.
    Highlight of the Bank deposit button in QuickBooks Online.
  2. Look for the payment on the list.
  3. Take note of the payment details.
  1. Go to Settings ⚙, then select Products & services (Take me there).
    Highlight of the Products and services button in the Settings menu of QuickBooks Online.
  2. Select New, then select Service.
  3. Enter "Rejected bank transfer" for the name.
  4. Enter "Bank transfer payment received rejected by the bank" for the description.
  5. If the bank deposit is already deposited, select the bank account you deposited to under Income account. If you haven't made the deposit yet, select Undeposited funds.
    Service item menu in QuickBooks Online.
  6. Select Save and close.
  1. Select + New, then select Invoice.
  2. Enter the customer whose payment got rejected.
  3. Add the Rejected bank transfer item you created in Step 2 to the invoice.
  4. Enter the total amount of the rejected payment.
  5. Make sure Tax isn’t selected. You may need to turn off the sales tax if needed.
  6. Select Save and close.
  1. Go to Sales, then select Invoices (Take me there).
  2. Select the invoice that has the rejected bank transfer payment, then select Edit invoice, or select Edit next to the rejected bank transfer payment.
  3. Select Payment.
  4. Uncheck the box beside the rejected bank transfer payment.
  5. Select Save and close.
  6. Select Save as a credit. 
  7. Select Yes.

Note: You can now resend the invoice to the customer so they can make a new payment.

  1. Go to Sales, then select Invoices (Take me there).
  2. Go to the invoice you created in Step 3, then select Receive payment.
  3. Check the box beside the rejected bank transfer payment to link it.
  4. Select Save and New.
  5. Select the invoice again, then select Delete from the More actions ▼ dropdown.
  1. Select + New, then select Expense.
  2. Select the customer in the Payee ▼ dropdown.
  3. Select Undeposited Funds from the Payment account ▼ dropdown.
  4. Select Accounts receivable from the CATEGORY ▼ dropdown.
  5. Enter the rejected bank transfer amount in the AMOUNT field, then select Save and close.
  1. Go to Settings ⚙, then select Chart of accounts (Take me there).
  2. Select Undeposited Funds, then select View register.
  3. Select the payment from the deleted invoice in Step 5, then select Edit.
  4. Check the box beside the expense that you created in Step 6.
  5. Select Save and close.

Create a Rejected bank transfer fee item

  1. Go to Settings ⚙, then select Products & services (Take me there).
  2. Select New, then select Service.
  3. In the Name field, enter "Rejected bank transfer fee."
  4. Select or add an income account called Rejected bank transfer fees from the Income account ▼ dropdown. Or, select an expense account you already use to track your bank charges.
  5. Select Save and Close, then select Save and close again.

Add the item to the original invoice and resend it

  1. Go to Sales, then select Invoices (Take me there). 
  2. Select the original invoice, then select Edit.
  3. Select Rejected bank transfer fees from the Product/Service ▼ dropdown.
  4. Enter the fee amount in the Amount field.
  5. Select Review and send.

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