Record NSF check from customer that received through Merchant Services

Hello there, @Aplus. 

I understand how time-saving it is to record a bounced check without using a Journal Entry (JE) in QuickBooks Desktop (QBDT). Since you mentioned that the button to record the bounced check is greyed out on your end, the alternative option to record it would include making a JE in QuickBooks.

Let me walk you through a seamless process:
 

Step 1: Create an item and income account for tracking bounced checks and their associated charges in your QBDT file. Note: This only needs to be set up once.
 

1. Create an income account:
   • Type: Income Account
   • Account Name: Bounced Checks Income
2. Create Bad Check Charge item:
3. Type: Other Charge
   • Item Name: Bad Check Charge
   • Amount or %: Leave it at 0.00
   • Tax Code: Non-taxable
   • Account: Select Bounced Checks Income (created in step a).

Step 2: Create a Journal Entry to reverse the original payment.

1. In your QBDT file, go to the Company menu, then select Make General Journal Entries.
2. In the General Entries window, debit your account receivables for the same amount of the NSF check.
3. Enter a note in the Memo column describing the transaction. Example: Bounced check #123 - NSF
4. Under the Name column, select the name of the customer or job associated with the NSF check.
5. Credit the checking or bank account that received the original deposit.
6. Once ready, click on Save & Close.

To proceed with Steps 3 and 4, kindly visit: Handle Non-Sufficient Funds (NSF) or bounced checks from customers.
 

Additionally, I'll also provide you with an article on how to merge multiple transactions into a single entry in QuickBooks: Record and make bank deposits in QuickBooks Desktop.

If there's anything else you need assistance with or if you have any additional questions about QuickBooks, kindly let me know. I'm here to assist you at any time.

Thanks for your respond but I already know what to do if I have to complete a Journal Entry.  What I really wanted to know is, with Merchant Services - isn't there a way to record a bounce check ?

@Aplus

In short: In this case, there isn't another way than manually doing a JE.

Let me know if this helps.

('Cheer' if you like my answer)

(JS)

Okay - I thought so. Just wanted to double check.

Thanks!

Jennifer

Hello, Aplus. 

Usually, merchant services don't offer the option to record bounced checks. If you need to keep track of a bounced check, you can create an income account and a bad check charge item. Then, you can make a journal entry to reverse the initial payment. To create a Journal Entry, you can refer to this article: Create journal entries in QuickBooks Desktop.

You may want to reach out to the merchant service support team for other ways to record bounced checks in their system. 
 

Here's an article about Find Transactions, Deposits, or Fees in the Merchant Service Center.

Feel free to check out this link as well to access some of the most commonly used guide articles when using the service: QuickBooks Payments FAQ.

Please feel free to leave a comment below if you have any other questions about recording bounced checks. I'm always here to help. Keep safe!

Thanks Ailene!  

I was hoping that merchant service would have the system up-to-date enough to record a bounce check.

I have always had to complete a journal entry to get the bounce check recorded.  

Thanks Ailene!

I was hoping that merchant service would be up-to-date enough to be able to record a bounce check.

I have always had to complete a journal entry and I was just checking in case I missed something.