Rejected ACH / New Invoice 'Returned'

Welcome to the Community, @Neal S. I'll help clear things up for you about rejected ACH payments in QuickBooks Online (QBO). 

Since you moved the original payment to a new invoice, the failed payment status will transfer to it. We suggest this step to keep your books accurate and allow you to resend the original invoice. 

I suggest you keep this article for the steps to resolve rejected ACH payments: Fix rejected ACH payments or fees in QuickBooks Payments. It includes a table that lists reject codes and what you can do to take care of them. 

Feel free to post a reply in the comments below if you have other questions about online payments in QBO. I'll get back to you as soon as I can. Have a great day!

Ryan, thanks for the reply and I understand why I added these new 'bookkeeping' invoices.  But it just seems like Quickbooks is not recognizing what I am doing. 

1.  My invoices page now has a red alert at the top saying "Needs Attention" every time I open it up.  Obviously, I can ignore this but how will I know when I have a new problem?

2.  These bookkeeping invoices show at the top of my invoice list even though they are several weeks old and show 'Returned'.

3.  When I click to view one of the new bookkeeping invoices, it says that 'Payment Disputed, your customer has filed a chargeback'.  It wants me to click a link regarding how to deal with a chargeback which has nothing to do with my situation.  

I am far from an accounting specialist but all this doesn't make sense to me.  Any help is appreciated.

Thank you for getting back to us and sharing more information on your concern, @Neal S.

Let's get rid of the red alert you're receiving when viewing your invoices in QuickBooks Online (QBO).

Firstly, the "needs attention" alert showing on the invoice page means that the transactions listed are disputed or declined by the bank via payments. To fix it, you'll want to open the alert and follow the needed action to resolve this. If you're unable to click the alert button, try logging into your QuickBooks Online (QBO) account using a private browser. To do so, press this shortcut key on your keyboard:

• Google Chrome: Ctrl + Shift + N
• Mozilla Firefox: Ctrl + Shift + P
• Safari: Command + Option + P

On the other hand, you'll receive the "payment disputed, your customer has filed a chargeback" alert once a customer disputes a charge. To handle this situation, you can read this article for the step-by-step process: Handle chargebacks and retrieval requests for QuickBooks Payments.

Please know that I'm just a reply away if you need any further assistance managing your rejected ACH payment. Wishing you all the best, @Neal S.

Hi Mark

1.  I followed your instructions to open up QB in private browser and was able to click on the 'Needs Attention $x' and get a message that "No matching invoices found."  Please note that x is the total amount of the invoices that were the rejected ACH payments.  So we did not succeed in removing the red alert and I even signed out and signed back in again.

2.  To be clear, I have not had any disputed payments or chargebacks from my customers.  Plus these returned invoices being listed are the 'bookkeeping' invoices that were never sent to them anyway.  I created them following the instructions on how to deal with rejected ACH.  Either I did something wrong or there seems to be a bug in QB to give me the message that these are disputed payments.  Thoughts?

Thank You.

Hello, Neal S.

I appreciate you for getting back to us and giving updates about the result. Let me help you get the support you need to fix the issue about the rejected ACH and returned invoice.

Since you've already performed the suggested troubleshooting steps above, I suggest contacting our merchant services support to investigate the issue further. They have more tools, like screen sharing, that can help you resolve your concern. 

The Merchant Service direct chat link is found here: Contact Payments Support.

Also, here's a couple helpful articles about rejected ACH transactions:

• Fix rejected ACH payments or fees in QuickBooks Payments.
• Handle a rejected or failed bank transfer payment.

Please let me know if there's anything else I can do to help on rejected ACH payment @Neal S. I'll be glad to help.

Did this issue ever get resolved? I'm experiencing exactly the same issue (following the prescribed procedure for a returned bank transfer flags the invoice as a dispute/chargeback). Would love to know how this got fixed.

I am having the same issue! No help from QB. 2 calls.... hours on the phone with no resolve.  Very frustrating. 

I know this wasn’t ideal, Amanda.

I want to help you, but I need more details about your concern. This way, I can provide the best resolution for you. Additional information is appreciated.

Our Support page contains resources, video tutorials, and tips to manage your company files. If you need information in the future, feel free to visit the site.

Don’t hesitate to tap the Reply button below for assistance. I’ll be here to help. 

3 hours on the phone with no resolution!  Tier 1 couldn't help, Tier 2 couldn't help, and Tier 3 couldn't help....so I got transferred to Merchant Services. The lady that took the call had no idea what was going on. She conveniently hung up on me so now I'm back to the drawing board. I'm done with Quickbooks. Their support is horrible!!!!! They are not training their staff to assist with the issues at hand. I have paid an outside adviser and my CPA to look into this issue. It's a programing issue and Quickbooks is just fumbling the ball. I'm taking my business elsewhere! 

Hi Amanda and Neal,

Did either of you find a solution to this problem? I am having the exact same issue. Thanks!

same issue. I hope QB finds a way to resolve this issue.

Hello got a check from Vendor that already been payed 

Just chiming in that I'm also having this issue. Followed all the instructions for correctly logging the returned payment, but now I have the red "Returned" invoice stuck at the top of my screen.

I'm having the same issue let me know if you ever find a solution! I've always followed the same steps to clear rejected bank transfers from customers for years now suddenly I'm getting "returned" errors on my invoices view under the sales menu. I've spent countless hours on hold being sent from department to department to get this figured out with no help and it doesn't seem like anyone at QB knows what I'm talking about. 

     Neal, you've done nothing wrong.  It has nothing to do with you being "far from an accounting specialist."  I've had this problem for over a year, and I'm a ProAdvisor Advanced.  This is a poor design in programming by the QBO team, and the Support staff doesn't understand that QBO's instructions are incorrect.

     Even the system itself gives incorrect information.  QBO tells me my customer disputed a charge, when in fact it was the bank that rejected it because they say there is no such routing number as the customer entered in the payment.

     QBO Payments should be designed so that this could never happen.  I.e., if an unknown routing number is entered, the payment should never go through in the first place.

Mark McCraw, CPA

It is crazy that this problem is still going on 18 months later Mark.  Thanks for your validation.  Just really makes my books messy since I have a lot of transactions weekly and invariably there are a couple a month that get rejected.  I would rather get my money days slower than deal with this mess.   

A customer paid online Echeck to a listed closed account that was still listed in QB online.  I have gone through these steps.  But there is no way to reverse the transaction or refund the customers account.      

Void or fully refund a transaction

1. Sign in to your  Quickbooks account.
2. From the Processing Tools drop-down, select Reverse a Transaction.
3. Fill out the necessary fields and select Search.
4. Select the transaction(s) you want to refund, then Submit.

Alternate method to Reverse or Void a sale

1. Sign in to your 
2. From the Activity & Reports drop-down, select Transactions.
3. Enter the appropriate date range and select Search.
4. Select the Transaction ID or the transaction you want to reverse.
5. Select Reverse (Void/Credit).
6. Select the checkbox for the desired transaction, then Submit.

Partially refund or credit a transaction

1. Sign in to your 
2. From the Processing Tools drop-down, select Reverse a Transaction.
3. Fill out the

I've got some information about why you can't refund the payment made by your customer to a closed account, mc. I'll lay them out and provide how you can seamlessly accept the payment.

Once a customer sends a payment to a closed account, that transaction will automatically be rejected or returned. Please note that the return period will depend on the bank's policies and procedures. That said, it's best to coordinate with your customer to look after when the fund gets back to their account.

When the money gets posted to their account, kindly update your linked QuickBooks Payments (QBOP) bank information. Refer to this article for the complete steps: Change the deposit bank account for QuickBooks Payments.

After that, resend the invoice to your customer. Following these procedures ensures the payment gets transferred to your updated/current account.

Furthermore, you can contact our Payments Support Team if you require further assistance tracking the fund. They have the tools to review and dig deeper into payments-related concerns.

You may also review this article to get answers to frequently asked queries about deposits via QBOP: Common questions about QuickBooks Payments deposits in QuickBooks Online.

Should you have follow-up questions about refunds and tracking of payments or need assistance with other QuickBooks data or reports, hit the Reply button. I'll keep an eye on this thread to assist you promptly.