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Frequent Contributor *

How to stop a pending ACH payment in Merchant Services

Hi! I sent an invoice to a client, and he accidentally processed the ACH payment through the invoice. He meant to wire the funds directly from his bank, which would process immediately, versus the ACH processing time. Two questions:

 

1) Is there a way I can cancel the pending ACH payment and the invoice? My colleague issued a new invoice to the client and the client has already wired the funds through the second invoice.

 

2) In the future, if this happens, what's the best way to proceed? My colleague issued the new invoice and it was paid quickly. I'm not sure if that's the best practice going forward if we run into this issue again?

 

Thank you!

Solved
Best answer 09-13-2019

Accepted Solutions
QuickBooks Team

Re: How to stop a pending ACH payment in Merchant Services

I appreciate the details that you've given, @jenuneekor.

 

I'd be happy to lend a hand in settling your payment concern. 

 

You'll need to do the process of receiving payment for the invoice number 1140 and issue a refund afterwards. This will record the transaction properly on your account. After that, you can now void the invoice so it will be cleared out totally.

 

Let's start with receiving the payment:

  1. Select the Create ⨁ icon, then select Receive Payment.
  2. Select the name of the customer from the drop-down menu.
  3. From the Outstanding Transactions section, select the transactions that you’d like for QuickBooks Online to calculate. 
  4. Select your payment method.
  5. Enter the Reference no. and Memo if applicable.
  6. You can either deposit the money to your checking account or to the Undeposited funds account.
  7. Select Save and close.

You may refer to this article for complete details of this process: Record a customer payment.

 

Once done, let's proceed with issuing a refund. Here's how:

  1. Go to the Create ⨁ icon.
  2. Click on Refund Receipt.
  3. Select the same product/service you are refunding and enter the exact amount of the refund.
  4. Fill out the necessary fields, then select Save and close.

For more information about this procedure, you may check out these resources below:

Right after, you may now void the invoice #1140. Also, just record the invoice #1142 as a brand new transaction.

 

There you go, jenuneekor.

 

Feel free to let me know if you have any other concerns with payments or any QuickBooks related things. I'm always here to help. Have a great weekend!

View solution in original post

5 Comments
QuickBooks Team

Re: How to stop a pending ACH payment in Merchant Services

Nice to have you here, @jenuneekor!

 

You can void your customer's invoice so it won't be processed through your Merchant Services account. I'll be happy to help you accomplish this.

 

Before we proceed, know that you can only void any transaction depending on its settlement status. Thus, I'd recommend contacting our Merchant Services Team to know the settlement status of your customer's invoice.

 

Nevertheless, here's how you can void your customer's invoice:

  1. Log in to your Merchant Services account.
  2. Under Activity & Reports, select Transactions.
  3. Enter the date of your customer's invoice.
  4. Select Search.
  5. Click Transaction ID of your customer's invoice.
  6. Select Reverse (Void/Credit).
  7. Click Submit.

Please know that you still have to wait before the actual voided invoice will post into your bank's statement. For additional insights, here's an article you can read to learn more about voiding a transaction: Void or Refund Transactions in QuickBooks Payments.

 

Additionally, you can void your customer's invoice first before sending a new invoice to our customer if this happens again in the future. This way, you'll avoid any duplicate record of the transaction on your Merchant Services account.

 

Lastly, I've also added this article that'll help you handle your future tasks after voiding a transaction: Am I Charged a Fee on Refund or Void Transactions?

 

If there's anything else that I can help you with, please let me know in the comment section down below. I'll be always around ready to help.

Frequent Contributor *

Re: How to stop a pending ACH payment in Merchant Services

Hi! Thank you so much for your help. The option to void the transaction was not available since I was after the 3pm processing time cut-off.

 

I chatted with QB merchant services and they told me I need to go into the first invoice, #1140, which was accidentally paid via ACH, go into the payment and delete the payment from that invoice. I did that.

 

I have invoice 1142, which was sent and the customer wired funds. This new invoice, 1142, was to replace 1140.

 

So, I understand that I will need to wire or write a check back to the customer to reimburse their first (accidental ACH) payment for invoice 1140 once that clears. And the customer sent the second payment via wire for invoice 1142. Last, I went into invoice 1140 and deleted the payment that was matched to that invoice.

 

Could you please share how I record all of this now?

1) What do I do with invoice 1140 - I need to record that this was not a sale but an accidental duplicate invoice.

2) I need to somehow log their payment in via ACH when it finished processing.

3) I need to somehow log the check that we will send to the client to reimburse them.

 

If I could just refuse payment on invoice 1140 and delete the whole thing I would be totally set since we have a new invoice (1142) and payment, but I can't so I'm not positive how to record all of these things in QB to ensure I don't mess up our books.

 

Thank you!

QuickBooks Team

Re: How to stop a pending ACH payment in Merchant Services

I appreciate the details that you've given, @jenuneekor.

 

I'd be happy to lend a hand in settling your payment concern. 

 

You'll need to do the process of receiving payment for the invoice number 1140 and issue a refund afterwards. This will record the transaction properly on your account. After that, you can now void the invoice so it will be cleared out totally.

 

Let's start with receiving the payment:

  1. Select the Create ⨁ icon, then select Receive Payment.
  2. Select the name of the customer from the drop-down menu.
  3. From the Outstanding Transactions section, select the transactions that you’d like for QuickBooks Online to calculate. 
  4. Select your payment method.
  5. Enter the Reference no. and Memo if applicable.
  6. You can either deposit the money to your checking account or to the Undeposited funds account.
  7. Select Save and close.

You may refer to this article for complete details of this process: Record a customer payment.

 

Once done, let's proceed with issuing a refund. Here's how:

  1. Go to the Create ⨁ icon.
  2. Click on Refund Receipt.
  3. Select the same product/service you are refunding and enter the exact amount of the refund.
  4. Fill out the necessary fields, then select Save and close.

For more information about this procedure, you may check out these resources below:

Right after, you may now void the invoice #1140. Also, just record the invoice #1142 as a brand new transaction.

 

There you go, jenuneekor.

 

Feel free to let me know if you have any other concerns with payments or any QuickBooks related things. I'm always here to help. Have a great weekend!

View solution in original post

Frequent Contributor *

Re: How to stop a pending ACH payment in Merchant Services

Thank you so, so much! This should do it! I so appreciate your help.

QuickBooks Team

Re: How to stop a pending ACH payment in Merchant Services

It's my pleasure helping you out, @jenuneekor.

 

Please know that the Community is always here to help you with any QuickBooks concern. Feel free to reach back out to us. Wishing you and your business continued success!

 

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