I have an eCheck that was processed through quickbook payments when the customer entered the wrong account number. Quickbooks deposited the funds in my account then deducted them later with a fee, but my invoice still shows paid. With a normal payment I can click on process bounced check, but with a Quickbooks eCheck that option is not available. How do I show the invoice unpaid, reverse the deposit to reconcile my account, and show the customer the payment was rejected/declined?
Hi there, pworthyservices.
Aside from using the Record Bounced Check option, there's another option to track bounced checks in QuickBooks Desktop. Here's how:
Once done, switch the payment for the invoice to the reversing journal entry.
Let me know if you need anything else. The Community is always here to help.
"Aside from using the Record Bounced Check option" - I would prefer to do this, but it is not available for echecks.
The issue I am having is that the customer is not seeing this as a bounced check. Quickbooks deposited the money in my account, and still shows response as approved, yet QB removed it from my bank and charged me a fee and lists the status disputed/disposed??
[Moderator note: edited customer screen below to protect privacy.]
This shows the deduction from my account along with the fee for deducting it.
Hi there, pworthyservices.
It could be that your customer initiated a chargeback request that's why the payment has been removed from your account was removed and it shows as disputed. This transaction is a sale disputed by the cardholder or card issuer. We can record this transaction using a refund so that you'll be able to reconcile your account. I'll guide you how:
Check out this article guide you in handling chargebacks and retrieval requests for QuickBooks Payments.
To know more about how chargeback works in QuickBooks, you can visit this article: Chargeback FAQ.
If I can of any additional assistance, please don't hesitate to leave a comment below. Feel free to tag my name.
I have run into the same problem. This is a programming issue that needs to be corrected. Please enable the bounced check option for e-checks!! Occasionally, but not often I will have a customer with insufficient funds and the check bounces. I need the same process to occur for e-checks as it does for normal bounced checks. The amount is deducted from the bank account register, along with any fees which I can enter. I can also create an invoice to charge the customer the return fee and Quickbooks automatically activates the invoice as unpaid again. I am well aware how to manually delete the deposit, delete the payment, change the payment to a regular check, then re-add the payment to the deposit, then use the bounced check button and finally have it enter a journal entry, and charge the customer and create an account and item list to deal with all of these things, but the point is we have programming for a reason! Please FIX this and enable the bounced check button for e-checks.
I followed all the steps in #2 but when I resend the invoice to the client to process payment on a second time, it's only allowing her to pay the returned check fee and saying there is a "credit" on the invoice, which is untrue.
Thanks for joining the thread, @franLBK.
There might be a data issue in your company file that's causing this behavior. This might be the reason why it's only allowing her to pay the returned check fee instead of the full amount.
Let's clear this out by updating QuickBooks Desktop to its latest release. Here's how:
Once done, try sending the invoice again. If you're still getting the same result, run the Verify and Rebuild Data tools. These will help us identify the most commonly known data issues within a company file and fix it.
If the issue persists, contact our phone support. They have the tools that could check your account and trace the cause of the problem.
Here's how you can reach out to them:
Please check out our support hours to ensure that we address your concerns on time.
You can also run several reports to tell where your company stands. These offer critical information about your business and finances.
The Community always has your back, so please let me know if you have any other questions. I'll be more than happy to help. Keep safe.
I had this same problem and followed your instructions to manually enter the bounced check and reverse the payment. Now the original deposit from QB Merchant Services is still showing in my checking account. How do I remove the Merchant Service Deposit?
Thanks for chiming in on this thread, ronnaranjo.
I'd like to direct you to the right support for this situation.
After you make the changes related to the rejected payments, please contact our Merchant Services Team. They can help you remove the deposit.
You can click on the Chat with us link in this article: Contact Payments or Point of Sale Support.
I'm also adding this link for more details about the process: Fix rejected ACH payments or fees in QuickBooks Payments.
Please don't hesitate to reach out to me if you have any additional questions or concerns, I'll be here for you until the issue is resolved.