Question

eCheck rejected

Forum|Forum|6 years ago
May 5, 2020
3 replies
45 views

I have an eCheck that was processed through quickbook payments when the customer entered the wrong account number. Quickbooks deposited the funds in my account then deducted them later with a fee, but my invoice still shows paid. With a normal payment I can click on process bounced check, but with a Quickbooks eCheck that option is not available. How do I show the invoice unpaid, reverse the deposit to reconcile my account, and show the customer the payment was rejected/declined?

QuickBooks Desktop

JenoP

QuickBooks Team

Hi there, pworthyservices.

Aside from using the Record Bounced Check option, there's another option to track bounced checks in QuickBooks Desktop. Here's how:

Create an item and income account for tracking bounced checks and their associates charges.
1. Create an income account using these details:
  - Type: Income Account
  - Account Name: Bounced Checks Income
2. Create Bad Check Charge item:
3. Type: Other Charge
  - Item Name: Bad Check Charge
  - Amount or %: Leave it at 0.00
  - Tax Code: Non-taxable
  - Account: Select Bounced Checks Income (created in step a).
Create a journal entry to reverse the original payment.
1. Go to the Company menu, then select Make General Journal Entries.
2. Debit your account receivables for the same amount of the bounced check.
3. Enter a note in the Memo column describing the transaction.
4. Under the Name column, select the name of the customer.
5. Credit the checking or bank account that received the original deposit.
6. Select Save & Close.

Once done, switch the payment for the invoice to the reversing journal entry.

Go to the Reports menu, select Customers Receivables, and then click Customer Balance Detail.
Double-click the original payment line for the bounced check.
In the Receive Payments window, move the check mark from the invoice to the reversing journal entry.
Select Save & Close.

Let me know if you need anything else. The Community is always here to help.

F

franLBK

I followed all the steps in #2 but when I resend the invoice to the client to process payment on a second time, it's only allowing her to pay the returned check fee and saying there is a "credit" on the invoice, which is untrue.

AlexV

Level 10

I have the same problem; client tried to pay my QuickBooks invoice via echeck online through intuit payment solutions. They simply transposed some numbers in error.

QuickBooks notified me of payment; waited a few days; funded the transaction; another day or so later - reversed the transaction, sucked the money plus $10 out of my account and sent me an e-mail.

i contacted client.

Client tried to go back in to take care of it; it won't let her pay the invoice - it says it has already been paid. So, the client wrote me a regular check, which i deposited.

But, now I can't get the "Automatically posted" rejected payment off her account. This makes it appear like she has a big credit balance - but she doesn't.

I read the details from others back through summer 2020. WHY IS THIS STILL AN ISSUE I HAVE TO STRUGGLE WITH??!!??!!

Hi GunTower19930!

Currently, the Record Bounced Check option is for the Check only, and not the e-Check payment method. Let me help you on how we can fix the rejected e-Check

We can manually record the rejected e-Check. What we'll need are an income account and a bad check charge item. Follow these steps on how to set up an income account:

Go to the Lists menu and select Chart of Accounts.
From the Account dropdown, select New.
Select Income an account type, then select Continue.
You can name it Bounced Checks Income, then Save & Close.

Follow the steps in the Create an item section of this article on how to add a bad check charge item: Add, edit, and delete items. Make sure to select Other Charge as the type of item, leave the amount as zero, non-taxable, and select the Bounced Checks Income you created as its income account.

We can now create a journal entry. You'll need to debit the account receivable (A/R) for the same amount of the rejected e-Check and credit the bank account that received the original deposit.

Then, we need to switch the payment for the invoice to the reversing journal entry.

Go to the Reports menu, select Customers & Receivables, then choose Customer Balance Detail.
Find and double-click the original e-Check payment transaction.
In the Receive Payments window, move the checkmark from the invoice to the reversing journal entry.
Select Save & Close.

Once done, the original invoice should be open again and you can apply a new payment to it.

You'll want to check this link: QuickBooks Payments FAQ. This includes different articles that will help you in managing your payments with QuickBooks Payments.

Do you have additional concerns? Let us know by commenting again here and we'll assist you. Thanks!

T

TDean2

What if the bank rejected it because it was an unknown transaction and then said to put the echeck back through?? How do you put it back through without all the darn steps to remove the payment and do it all over?

Tori B

QuickBooks Team

Thanks for following along with the thread, @TDean2.

When we have a rejected echeck in QuickBooks Desktop, you'll need to void it, then recreate a new one using all the same details of the first check. At this time, there isn't a way to resend the same one. I've included some steps below to void the current echeck.

Here's how:

Sign in to the Merchant Service Center.
From the Processing Tools, select Void an eCheck.
Choose the appropriate eCheck to void.
Click on Submit to complete the process.

Once you've voided the echeck, you can Create a new one to send.

For additional details about this process, check out Void an echeck in QuickBooks Desktop.

Please don't hesitate to let me know if you have any questions or concerns. Have a good one!

D

DPHarris

I accidentally stumbled upon an easy fix - open the payment and change it to a Check (instead of E-check) then save and close. Re-open it and the option for Record Bounced Check is now available.

D

DPHarris1

They must have saw this EASY fix and made it now so we now cannot do this - now the option to change the payment type is grayed out and not an option - so annoying! WE NEED AN EASY FIX - like let us use the bounced check option!!

S

SarahannC

Level 9

I hear your sentiments. Helping you fix the problem with changing the payment method and enabling the Record Bounced Check option in QuickBooks Desktop is indeed my priority, DPHarris1.

The Record Bounced Check option in QuickBooks Desktop is typically grayed out for customer payments when the payment method used for the transaction is not eligible for bouncing. Credit cards, cash, or another type of non-bouncing payments do not have the possibility of being returned or bouncing.

Thus, updating the payment method to a Check can help you get through it. Did you get an error message when trying to update the payment method? If yes, it would be best to provide the exact error message. That way I can provide you an exact information and accurate solution to your concern.

If you didn't receive an error, we can go ahead and isolate why you're unable to change the payment method. Start updating QBDT to the latest release. It gives you a better experience, including bug fixes and improvements that could resolve issues like this.

Go to the Help menu and choose Update QuickBooks Desktop.
Select Update Now.
Check the Reset Update box to clear all previous update downloads.
Click Get Updates.
Restart the software when the download is complete.
Accept the option to install the new release when prompted.

Once done, you can perform verify and rebuild in QuickBooks Desktop: Verify and Rebuild Data in QuickBooks Desktop.

Afterward, open the customer payment and change the payment method again.

Let me know how it goes. You can go back to this thread if you have more questions. I'll be around to help you in any way that I can. Take care and stay safe.

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