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How to account for disputed payments - QBO

I have a customers payment that was rejected by their bank.  It did make it in to the deposit with other payments from that other day.  A few days later quickbook returned the money.  Customer later paid my directly with a check which I deposited.

1)How to acknowledge the disputed payment so I dont see the red need attention warning. 
2)Where do I apply the money that was removed out of my account? I can apply it to account receivable for the customer.  it then shows the customer  owes me money.  This seems good except for it doesn't address the disputed payment warning. 

3 Comments 3
QuickBooks Team

How to account for disputed payments - QBO

Thanks for sharing your concern, @Anonymous.


I'm here to help share some information about handling a disputed payment from a customer in QuickBooks Online.


Are you referring to credit card transactions? If so, disputed credit card transactions also know as chargeback will be recorded automatically on your Merchant Services Center. This will happen if a merchant responds with a documentation of the chargeback, it will take up to 90 days to complete the chargeback cycle. 


To remove the needs attention warning on your QuickBooks, I'd recommend getting in touch with our Merchant Services Team. This team is the best resource for such concern as they're able to check on your transactions and eliminate the red warning. 


Also, when it comes to recording your customers payment, you may wish to consider reaching out to your accountant to ensure the best course of action for your organization.


To learn more about the chargeback procedure in QuickBooks Online, please check out this article: Chargeback FAQs.


This amount of information should get you going today.


Don't hesitate to reach back out to me if you have any other questions with QuickBooks payments. I'll be around to help. Have a nice day ahead.

Not applicable

How to account for disputed payments - QBO

These are checks/EFTs through quick book payments.  I think in all the cases the account name didnt exactly match what they typed in as there names to the bank bounced it back..  It at least two of the cases I got paid first to the point where funds were deposited and then charged back (and withdrawn two days later). 

I applied the withdrawal of the fund against that customers accounts receivable so then when they paid again it worked out fine.    Issue is i still get these alerrts.    You should be able to acknowledge these yourself. 

QuickBooks Team

How to account for disputed payments - QBO

I appreciate these details that you've provided, @Anonymous.


I want to ensure that you'll be able to remove the alert that you received for QuickBooks Payments. Let me get you pointed in the right direction. 


To permanent remove the alert you receive, It'd be best to reach out directly to our Merchant Services Department. They have the tools to trace on your transactions and fully lift the warning that's showing up on your end since the payment has been settled. This is to ensure that your account is in a secure space since the Community is a public forum.


Also, here are some articles that you can check out about handling rejected payments in QuickBooks for your future reference: 

This should get you back to business.


Please know that I'm just a reply away should you have any other QuickBooks question. I'd be pleased to help. Wishing you well.

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