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Level 1

Quickbooks talking about withholding my funds for 270 days

I own a small business and recently I decided to switch from Freshbooks to Quickbooks (client recommendation), mainly because I wanted to bring my invoicing, payments and accounting together in a single platform. I signed up for payments and sent out invoices worth about $7k. All of them except for one were paid with credit/debit card. As soon as those invoices were paid, Quickbooks put my account and funds on hold. That was on 10/09. They said they wanted to review my account since it was new and they requested some documentation - company business license, proof of address, my drivers license, tax id letter from IRS, phone bill, utility bill, agreements I have with clients (seemed creepy to me)...just short of my DNA, fingerprints, voter registration, blood type, my kids birth certificates...you get the picture! I obliged to their request ad they told me that they'll review within 1-2 business days. Ok, no problem! That 1-2 business days turned to to a week. I spoke with my client (the one who recommended me to QBO) about what was going on. She said that strange. She advised to refund her transactions and she'd be glad to pay me directly to my bank with ACH. I reversed those transactions  on 10/19 and she paid me directly to my bank the same day. Unfortunately, QBO still held on to her funds until yesterday (10/27) before they could return those funds to her. I was so embarrassed! I kept contacting them every day for the last 2 weeks and they would not help. Anyway, yesterday they claim that those refunds we sent back ( even though all those transactions still show as 'Withheld' in QBO dashboard). Assuming that those transactions were actually refunded (my client says she hasn't seen the funds yet and I have no reason to believe them at this point), there is still another ACH transaction worth about $3k they are still holding on to. They are saying that I can't reverse an ACH client and the only way would be to ask that other client to file a dispute with his bank. I don't want to do that to him! In regards to that transaction, they told me today that they may withhold to that ~ $3k for 270 days. After that, they will do another review and may withhold it for another 270 days. For what reason, I don't know, but I am guessing that they did not like what I look like in the picture on my state ID/DL I sent them...go figure what it going on here. My guess a person like me should not be having their own business and etching out a living in that sort of manner. They'd rather see me working at MacDonalds if you know what I mean. Anyway, up to this day, they're still withholding my $3k and will not release it to me or send it back to my client. The only options I have at this point is to ask the client to dispute the transaction and hopefully they'd be forced to give back his funds and he can pay me another way. Or I could seek resolution in the legal system. I was unable to pay my business rent on time last month because of them withholding my funds for that long. What do you think I should do to get this matter resolved?

4 Comments
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QuickBooks Team

Quickbooks talking about withholding my funds for 270 days

Thank you for providing details about your concern, @NeverAgain.

 

When a payment you accepted is on hold, no worries. This doesn't mean there's anything wrong. It means we need to review the payment to make sure everything is alright. To check the status of your customer's payments, you may refer to the steps below:

 

  1. Sign in to the Merchant Service Center.
  2. You'll see the word Withheld in the Method column. This is to indicate that the payment is on hold and we're reviewing it.
  3. Any time there's an issue, you'll get an email at the email address you use to sign in to the Merchant Service Center.
  4. Read the email carefully. It will give you specific steps to fix any issues. 
  5. Then, follow the steps in the email as soon as possible.

 

For more info, please visit these articles:

 

 

Also, to learn when QuickBooks deposits customer payments into your bank account when using QuickBooks Payments, please see this link: Find out when QuickBooks Payments deposits customer payments

 

Please let me know if I can be of additional assistance or should you have any follow up questions. I’ll be here to help. Have a good one. 

Highlighted
Level 1

Quickbooks talking about withholding my funds for 270 days

While I understand the need to take precautionary measures to guard against fraudulent transactions, such measures have to be implemented in such a manner that does not cause unrecoverable damage. Holding a small business funds for 30 days means missed bills and that has big consequences especially in this economic environment we're in. I could not pay my landlord this month because I had to refund the invoices because you decided to withhold my funds. And then the threat to withhold the funds for 270 days is just absurd. Worse case, if you do not feel comfortable processing payments for a particular customer I believe the best resolution would be to decline the transactions and return the funds to the clients (there is no risk doing that). That way, the business can figure out another way to get paid from their clients. Withholding funds for such a long time is in most cases disastrous for small businesses. In my case, you refused to refund the transactions or release the funds, meaning that the client cannot get their money back and they cannot pay me using an alternative means. And I certainly feel companies like yours unfairly target businesses owned by minorities because in most cases we don't fit into your 'standards' which are usually economically biased against us. We've to justify our businesses more. That's not right and I am sick of it!

Highlighted
Level 14

Quickbooks talking about withholding my funds for 270 days

You may have other options to accept online payment and integrate it with QBO. Regarding your current issue, contact Merchant Service every day to speed up their process. 

Highlighted
Level 1

Quickbooks talking about withholding my funds for 270 days

Yes I do have other options to accept online payments and I switching to them. I do not even want to use quickbooks for anything, so I am switching back to Freshbooks. I have been contacting Merchant Services everyday for the last 2 weeks and the issue hasn't been resolved.

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