Returned ACH transaction and fee

Thanks for reaching the Community space, @NealRMNealRM. I appreciate all the details that you've shared.

I'm here to share some insights about the returned ACH transaction.

To fix the error code RO3/RO4 or No Account/Unable to Locate Account/Invalid Account Number, you'll have to sign to the Merchant Service Center and update your bank information in the Account Profile section. For account security, you may need to enter the last four digits of your business Tax ID or SSN.

To change your bank account info:

1. Log in to your QuickBooks Payments account.
2. From the menu, select Account, then Account Profile.
3. Go to the Deposit Account Information section, then select Edit.
4. Select how you want to receive the code (text or voice call).
5. Enter the code in the pop-up window.
6. Enter the Account Type, Routing/ABA Number, and Account Number, then select Submit.

For more information, see these article: Update business and account info.

With regards to the charge, I'd recommend contacting our Payments Support Team. They have tools that can verify the charge and further help you with that matter. To reach them, click this link: Contact Payments or Point of Sale Support.

I've listed these references that will guide you in handling rejected ACH payments in QuickBooks:

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

Please leave a reply below if you have other questions or concerns. I'm always here to help. Take care and stay safe!

The issue is not with my account information. The ACH transaction was deposited into my account. Then QB, reversed the transaction and charged me $10. QB stated there was something wrong, but did not provide enough information to verify.

There are 3 MAJOR problems with this. 

1. Why did QB accept the transaction in the first place?
2. Why are they charging me a fee for someone else's "mistake"
3. Why a $10 fee for something that cost QB exactly 0.00 to perform? This is a 100% bogus fee. It has no bases other than to extort money from its clients. 

Thanks for getting back to us, @NealRM. I'm here to share some insights about rejected ACH payments in QuickBooks. 

QuickBooks Payments charges a fee each time a transaction is processed. This charge will be posted in your account. 

In your case, you may want to charge your customer for the failed payment. First, create a "rejected bank transfer fee" item. Here what you need to do: 

1. Go to Settings menu, then select Products and Services.
2. Select New and then Service.
3. In the Name field, enter "Returned Bank Transfer Fee."
4. From the Income account drop-down, select or add an income account called Returned Bank Transfer Fees. Or, select an expense account you already use to track your bank charges.
5. Select Save and close.

After that, add the item to the original invoice and resend it. Here's how:

1. Open the invoice, then add the returned bank transfer fee item.
2. Enter the amount of the fee you were charged.
3. Resend the invoice.

You can visit this article to learn more about handling a rejected or failed bank transfer payment in QuickBooks. 

You're always welcome to reply if you have follow-up questions with credit card fees. I'll be around to listen and help. 

I just had this happen too! I had to wait for it to hit my bank account and compare 15 digit transaction id numbers and dates to try to figure out which invoice payment was rejected. It seems that the payment should have been rejected while the customer was attempting to pay up front. This is just wrong.

Joesem M -

You completely missed the point of the original post - as if you didn't actually read it.

So disappointing.

Duplicate post removed...

@katherinejoyceO you are not hearing us, you are basically reciting the help info. I just had this happen also.

When looking online at the R04 error, it states the reason as being "No Account/Unable to Locate Account/Invalid Account Number The account number doesn't match the individual on the payment, or the account isn't valid." 

Then, right next to it, to resolve, it says "Change the deposit bank account for QuickBooks Payments." THESE ARE CONFLICTING STATEMENTS. The issue is the customer supplied bad routing and/or account numbers, yet QB says we should change our bank account info WHEN THE FUNDS HAVE BEEN DEPOSITED AND THE SUBSEQUENTLY WITHDRAWN. Then, we are charged $10 for something that WAS NOT OUR FAULT and have to spend time fixing it in QB.

Why does QB allow a customer to supply bad info, move the funds to the user's bank and then when they get notified there was an error, take the funds away? This is HUGE problem as it opens up a window for fraud. A customer could easily pay online with false info, go pick up goods or receive services and then we end up getting the funds taken away.

Thank goodness when this happened to me it was for a down payment and my customer quickly showed up with a paper check.

It's not the kind of impression we want you to feel, @jsalda.

Please know that we'll take note of this, so we can update the necessary information in the Fix rejected ACH payments or fees in QuickBooks Payments support link.

You can also send feedback about the link in QuickBooks. I'll guide you on how.

1. Open the Change the deposit bank account for QuickBooks Payments link.
2. Scroll down, and you'll see at the bottom "Was this helpful?", Select No.
   
3. Select one in the OK, tell us more.
   

I've added this reference for more information about processing eChecks: Accept ACH payments and eChecks.

I'll be around if ever there's anything that I can help with. Stay safe.

After an hour of searching around, and trying different things, I've landed here.  It's all so insane!  I received two emails about an invoice I sent with ACH and Credit Card payment options.  It was an invoice that is on my books as paid and deposited, $80.73.  It took a couple days to show up on my bank statement so I thought it was a glitch, but sure enough, there it is, $80.73 taken back out of my account, along with a $10 fee.  My bank account is not connected to my quickbooks, so I can't do what some "support" has recommended in other threads, via bank transactions, etc.  

Here's what really sucks: First off, the email states "

• Return reason: R04 - INVALID ACCOUNT NUMBER [removed]

Why, I might ask, would you allow a person to input the incorrect bank information and then charge me a fee for it?????  The email has a link to see "how to handle a canceled bank transfer".... doesn't work.  When searching, the only articles I find assume you have your bank account linked, but I do not.  

THE QUESTION, PLEASE ANSWER:::::::::: I have an invoice showing PAID that has not been paid, and of course your handy little $10 fee.  How do I get my books to balance?  I can't delete that transaction as it's already been "deposited" %$!@#%

Hello, @tyler11.

We recognize how frustrating it is to deal with the problems surrounding your invoice and the deductions from your account. It's not just about the financial impact, but also how it has affected your overall experience and productivity.

Let me make it up to you by sharing some helpful information and steps that can assist you in moving forward from this situation.

QuickBooks Payments uses the ACH (Automated Clearing House) network for bank transfers. The ACH network has security measures in place to prevent fraudulent transactions. When incorrect bank information is entered, it fails these security checks, resulting in a return code. A verification process occurs after the information is submitted, including checking the account and routing numbers against the bank's records. If there's a mismatch, the transaction is rejected.

The reject code R04 indicates that the account number doesn't match the individual on the payment, or the account isn't valid. Since the payment has been returned and your bank isn't connected to QuickBooks, you can resolve this by creating an expense to record your customer's bounced check or payment. I can guide you through the process.

Unapply the payment from the invoice

1. Navigate to Sales, then All sales.
2. Locate the payment for the bounced check and select Edit.
3. Uncheck the box for the invoice that the payment had been applied to.
4. Enter the payment amount in the Amount received field.
5. Click Save and close, Save as a credit, then Yes.

Make an expense

1. Go to the +New button and select Expense.
2. Choose your customer as the Payee.
3. In the Category details section, choose Accounts Receivable as the CATEGORY.
4. Enter the AMOUNT of the invoice.
5. Select your customer from the CUSTOMER/PROJECT dropdown.
6. Add the fee ($10) in the next line and use the appropriate category for tracking bank charges.
7. Finally, click Save and close.

Link the expense to the unapplied payment

1. Go to the +New button and choose Receive payment.
2. Select your client from the Customer dropdown.
3. Under Outstanding transactions, tick the checkbox for the expense.
4. Scroll down to the Credits section and check the unapplied payment.
5. Click Save and close.

Now, open the original invoice and add the fee item if you want to charge your customer. Then, resend it.

For more detailed information, visit this article: Record a returned payment or bounced check in QuickBooks Online.

I'm still ready to back you up if you have any other concerns besides returned payment or check. Feel free to add a comment to this thread. Stay safe!