How to record a returned payment received through QuickBooks Payments?

To record a returned payment, you can use an expense to create a record, @neil61.

You can start by recategorizing the bounced payment to reopen the invoice.

Here's how:

1. Find and select the returned payment in the bank feed to open the transaction details.
2. In the Vendor/Customer ▼ dropdown, choose the customer name.
3. In the Account ▼ dropdown, select Accounts Receivable.
4. Hit Add.

Once done, remove the bounced check payment from the original invoice. Follow the steps below:

1. Locate the customer whose payment bounced.
2. Find the payment for the bounced check and click Edit.
3. Select the payment linked.
4. Uncheck the box for the invoice to which the payment has been applied.
5. Choose the new expense you created in Step 1.
6. Hit Save and close.
7. Click Yes.

You can then create an invoice for the bank fees to charge your customer and send them a statement. Refer to steps 3 and 4 of this article for the detailed steps:  Record a returned payment or bounced check.

After they pay the amount owed on the original invoice along with the bank fees, you can proceed with the usual steps to record their payment.

Comment below if you require additional assistance with handling a returned payment. We are always here to help.