How to record a QuickBooks payment reversal

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:

1. Sign in to your QuickBooks Payments account.
2. Tick the Processing Tools drop-down and select Reverse a Transaction.
3. Fill out the necessary fields.
4. Tap Search.
5. Choose the transaction you want to refund.
6. Press Submit.

We can also use the Reverse (Void/Credit) option in your QuickBooks Payment account to reverse the payment.

 Let me show you how:

1. Click the Activity & Reports drop-down and select Transactions.
2. Enter the date period.
3. Tap Search.
4. Choose the Transaction ID or the transaction you want to reverse.
5. Hit Reverse (Void/Credit).
6. Place a checkmark on the transaction.
7. Press Submit.

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.

Here's how:

1. Go to Settings ⚙ and select Products and Services.
2. Select New and then Service.
3. Enter "Rejected credit card payment" for the name.
4. Add "Credit card payment received rejected by the bank" for the description.
5. If the bank deposit is already deposited, select the bank account you deposited into for the Income account. Or if you haven't made the bank deposit yet, select Undeposited funds for the Income account.
6. Select Save and close.

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:

1. Go to: Contact Payments or Point of Sale Support.
2. Click Chat with us under QuickBooks Payments.
3. Enter the necessary information. 
4. Hit Start Chat. 

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.