We have a customer that paid an invoice through QuickBooks Online payments. The credit card payment was later reversed due to insufficient funds. The invoices are now marked as paid even though the payment was reversed. What is the best way to record the reversal? There was a QuickBooks alert that walked me through how to do this, but now I can't find how to access the message again.
I've got some steps we can perform to reverse the QuickBooks Payments, Jeffrey Dickson.
We can void the transaction by using the Reverse a Transaction feature in your Merchant account.
Proceed as follows:
We can also use the Reverse (Void/Credit) option in your QuickBooks Payment account to reverse the payment.
Let me show you how:
For more details about this one, check out this article: Void or refund transactions in QuickBooks Payments.
Visit our Merchant Services page for more insights about managing your QuickBooks Payments.
Tag me in a comment below if you have other questions about refunds in QuickBooks Payments. I'll be around to help you out. Have a great day, Jeffrey Dickson.
Michellebh, thank you for the response!
I'm not sure this is quite what I need help with, maybe I'm describing it incorrectly. The credit card payment has already gone through and was recorded as a QuickBooks payment to the register after saving the Bank Deposit. The credit card was then declined, the charges were reversed and QuickBooks charged us the amount of the invoice that was declined. How do I record those expenses against the invoices marked as paid? If I recall correctly, don't I need to set up a new "card declined service" in products and services or something along those lines?
Hi @Jeffrey Dickson,
I appreciate you for getting back with some clarification about the payment issue. I'm here to help handle the failed credit card payment in QuickBooks Online.
Yes, you're right. You'll need to create a service item to track the rejected payment from the customer.
Rejected credit card payments or ACH transfers have the same process for insufficient funds. Once done, you follow the remaining steps in the order shown in this article (scroll down to Step 3): Handle a rejected or failed bank transfer payment.
If you need more help, you can contact our Payments Team. Our support is available from 6 AM - 6 PM PT (Monday - Friday).
You can reach them through these steps:
Additionally, I've attached a link you can check out to learn more about what to do if customers' credit card payments get declined when you process them: Fix customer's declined credit card payments.
Leave a comment below if you need more assistance with the declined customer payment in QuickBooks. I'm always here to help. Take care.