Merchant Service Deposits

Welcome to the Community, @CKC_Heather. Allow me to share some insights about the financial accounts in your QuickBooks Desktop account.

When you create an invoice, it is debited from the Accounts Receivable and credited to the income account.

While receiving payments, debits the bank and credits the Undeposited Funds.

If the Receivable account is bank or asset type, follow the steps below to update an account.

1. Sign in to the Merchant Service Center.
2. Go to the Account menu and choose the Account Profile.
3. From the Deposit Account Information section, click Edit.
4. Fill out the New bank account section.
5. Enter the bank details in their corresponding boxes.
6. Check if the Account Holder/Doing Business As field matches the bank account owner's name.
7. Choose one from the Reason for this account change dropdown.
8. Hit Submit.

To learn more about the process, check this article: Change the deposit bank account for QuickBooks Payments.

I'm also adding this article as your guide to record bank deposits for QuickBooks Payments: Manually record bank deposits for QuickBooks Payments.

For your future reference, here is a guide to add and match transactions: Add and match Bank Feed transactions.

Let me know if you have follow-up questions about Merchant Service Deposits. I'm always around to help.

Hi-

This answer doesn't address with my question. I do not want to change the bank account associated with deposits I want to change the receivables account in Quickbooks. It should be under 1200 - Accounts Receivables and it's currently under 1210 - Receivables - Other. Thank You.

I understand how much you want to change the account to keep your books precise @CKC_Heather.

I can share some insights about changing the payments account from Receivables - Other into Accounts Receivables. You're correct that the way to fix it is by creating a journal entry to assign the balances accurately. This is the proper way to resolve it in the meantime.

Please know, though we can create multiple AR accounts in QuickBooks, it will still use the default AR account when creating an invoice.

For your accounting preferences, I suggest consulting an accountant to check for other options on how to get the payments accounted into Accounts Receivables.

I've included these articles so you can check which other default accounts QuickBooks set up for you and how to correct a damaged Accounts Receivable account in the QuickBooks file for future reference:

• Learn about the chart of accounts
• Error in Merchant Deposits

Regarding your Merchant Services concerns, you can also add them below, and we'll be back to answer them.

If you have other questions in mind about recording transactions, please let us know. We're always here to assist. Take care always.

If the deposit would go to the default A/R account we have when we create the invoice it would then go into 1200- Accounts Receivable. That is the account that we list when we create an invoice. Our assumption was also that the deposit would then go into 1200 - Accounts Receivable as listed in the invoice but it is actually going into 1210 - Receivables Other. This seems to be a Quickbooks error. The two articles you listed did not provide any information I am not already aware of. I want a simple solution telling me the steps to correct the Quickbooks error. Thank You. 

Thanks for getting back with the Community about this, CKC_Heather.
 

To properly identify how you can use journal entries to assign your deposits accurately, I'd recommend working with an accounting professional. If you're in need of one, there's an awesome tool on our website called Find an Accountant. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.
 

Here's how it works:

1. Go to our Find an Accountant page.
2. In the Find an expert in section, choose what you're looking for, then use your search field to enter a City or ZIP code.
   
3. Select Search.
   
4. Browse through the results and find one that works best for your business. You can click on each ProAdvisor's profile to learn more information about them.
   

Once you've found an accountant, they can be contacted through their Send a message form:

1. Use the available text box to introduce yourself. Be sure to include details about which services you're looking for.
   
2. Enter your appropriate info in the Your name, Your email, and Your phone number (optional) fields.
   
3. Hit Send message.
   

You'll also be able to find many detailed resources about using QuickBooks in our help article archives.
 

If there's any additional questions, I'm just a post away. Have a wonderful day!

I think you guys are still not understanding my problem. I don't need help with a Journal Entry. I do not need an accountant. I need to understand why your software is taking invoices that we assign to 1200 - Accounts Receivables and depositing them into 1210 - Receivables Other. I have included a screenshot of the invoice which lists the correct acct "1200- Accounts Receivable" and I have also attached a screenshot of the payment screen showing the deposit is going into "1210 - Receivables Other". This is using Merchant Deposits and clicking "Add Payment" from the Merchant Service Deposits Screen. 

Thank you. We are manually changed the payments to the 1200 account in the drop-down menu on the Payments screen, I will reach out to the Merchant Accounts support team you mention to help figure out why Merchant Deposits is depositing into the 1210 account. 

I have been a customer of QBO since 2018. My business currently averages 20k a month in sales volume and my other business around 50K. I recently paid an invoice to [business name] from my business [business name]. [business name] is also my business. The funds went on hold about 3 days ago because of issues with [business name] Merchant services. I went into the merchant services que to see why the deposits were on hold and it prompted me to contact merchant services. I contacted merchant services, and they explained that the funds were on hold because the account with [business name] was not current. I resolved the issues and spoke to QBO Merchant services Rhoa whom ensure the funds that were release would be released this morning. I needed the funds to pay my lease for my business (TOTAL $1550). 

This morning to my surprise the funds were not released. I called my bank who informed me that QBO merchant services still had my funds on hold. As you can imagine I was upset. I started a chat with QBO Merchant Services Angelica and presented her with the previous case number 1588922454. She investigated the issue and told me the prior associate did not do what he was supposed to do to get the funds released and that it could take another 24 hours. At this point I was not happy with the incompetence, and I asked to speak to the manager.

I spoke with QBO Merchant Services Manager Chris who then proceeded to tell me there is nothing he can do and that the funds "Might be available" in 3 days *(

Wow... So at this point I asked for a credit of $100.00 for the late fee I'm going to incur from my landlord and they told me they could not do anything about that. They also proceeded to tell me that the operational department cannot be contacted internally or externally, and nobody could contact the intuit entity that was holding and reviewing my transaction. This was an eye opener for me..... Chris then proceeded to tell me he could get his supervisor on the phone, but he would say the same thing. I waited for over an hour for his supervisor to get on the phone and he Chris told me he was too busy to speak with me at the moment and would call me back. It’s been two hours and I have not received a call.    

Has anyone else experience this? I have attached the chat conversations for review. I cannot believe this could happen with such a large company as Intuit. I'm truly disappointed. 

I have been a customer of QBO since 2018. My business currently averages 20k a month in sales volume and my other business around 50K. I recently paid an invoice to [business name] from my business [business name]. [business name] is also my business. The funds went on hold about 3 days ago because of issues with [business name] Merchant services. I went into the merchant services que to see why the deposits were on hold and it prompted me to contact merchant services. I contacted merchant services, and they explained that the funds were on hold because the account with [business name] was not current. I resolved the issues and spoke to QBO Merchant services Rhoa whom ensure the funds that were release would be released this morning. I needed the funds to pay my lease for my business (TOTAL $1550). 

This morning to my surprise the funds were not released. I called my bank who informed me that QBO merchant services still had my funds on hold. As you can imagine I was upset. I started a chat with QBO Merchant Services Angelica and presented her with the previous case number 1588922454. She investigated the issue and told me the prior associate did not do what he was supposed to do to get the funds released and that it could take another 24 hours. At this point I was not happy with the incompetence, and I asked to speak to the manager.

I spoke with QBO Merchant Services Manager Chris who then proceeded to tell me there is nothing he can do and that the funds "Might be available" in 3 days *(

Wow... So at this point I asked for a credit of $100.00 for the late fee I'm going to incur from my landlord and they told me they could not do anything about that. They also proceeded to tell me that the operational department cannot be contacted internally or externally, and nobody could contact the intuit entity that was holding and reviewing my transaction. This was an eye opener for me..... Chris then proceeded to tell me he could get his supervisor on the phone, but he would say the same thing. I waited for over an hour for his supervisor to get on the phone and he Chris told me he was too busy to speak with me at the moment and would call me back. It’s been two hours and I have not received a call.    

Has anyone else experience this? I have attached the chat conversations for review. I cannot believe this could happen with such a large company as Intuit. I'm truly disappointed. 

This isn't the impression we want you to have, @Parrott and Associates LLC. 

We understand how disruptive holds can be to your business. Let me make it up to you by making sure this gets investigated further. 

We'll be submitting your experience to the Office of the President team for review. Rest assured you'll hear back from someone within 1 business day to help facilitate a resolution.

Keep your line open so our team can contact you regarding this matter.

I'm also adding this resource to provide some insights about on hold and delay funds: Why are my funds on hold?.

Don't hesitate to get back to this thread if you have further questions about on hold and delayed funds. I'll be around to assist you always. Keep safe!

I am curious if this issue ever got resolved.  I am dealing will this issue at this time.  I processed the credit card payment on the 27th of Oct and the payment is still being withheld.  I had to provide all kinds of documents to prove I guess that the payment was a payment.  I provided the invoices to my customer, the remittance advice from my customer and answered all kinds of questions.  That was the first email from them.  After sending those documents the requested 6 months of bank statements and they also stated that they think that I have been self-funding the business.  Wow..so I had to validate the fact that I was not.  This payment is 110k.  They have processed 89k, 75k, 60k from this same customer.  They have told me over and over it will be 2 days until it will be reviewed. Then yesterday I was told it was going to take 5 days.  I need my money now not 10 - 15 days later.

I know how difficult this has been, @KarieSue. I'm here to share some details about the payment processing issue in QuickBooks. 

I appreciate you sharing details about the things you've done. I know that you did everything you could. Our team has been able to look at your case and it seems like there may still be information needed to complete our verification process.  

That said, someone from our Merchant Services team should be in touch with you soon, or you can contact them to get an update about your account and determine what items may be outstanding. 

Please let me know how this goes, I want to ensure this will be taken care of. If you have any other QBO concerns, feel free to post again here. I'm just around the corner to help. Take care always.

It has still not been resolved.  They have requested shipping documents and the agreement between the customer and the company.  I provided these documents immediately.  The amount being withheld is paying for 8 invoices.  I submitted the purchase order for each job and the signed delivery ticket for all 8 of them.  We delivered these completed jobs ourselves.  Now this process added ANOTHER 2 days.  I spoke to someone in a different department yesterday since apparently the support team for merchant services are all trained to say the same thing, and of course nobody has contact information for the collections team which is the department responsible for reviewing documents submitted and holding the key to everyone's livelihood.  The person I spoke with yesterday stated that all my documents had been received and reviewed but wasn't sure why there was not a certain code?? He also stated that in 2 days I should know something.  This 2 days thing is really getting old....quick.  And nothing but lies have came out of 95% of Quickbooks Support Team members mouths.  This whole situation is quite disturbing.