Can I cancel a disputed payment (invoice) and reissue invoice?

Hi there, tc45.

Thank you for visiting the QuickBooks Community. Let me share some details about the disputed payment or chargeback in QuickBooks. Then, ensure you can reissue the invoice after performing the details below.

A chargeback is when an entry you processed gets disputed and the money goes back to the payer. In other words, the sale is "charged back" to you. Chargebacks can happen for a variety of reasons. They may be the outcome of a mistake, fraud, or an unhappy customer. If you don't handle them properly, they can cost you time and money. 

There are steps that you need to complete when a chargeback happens for a payment you processed with QuickBooks Payments. To start with, Intuit will email you about chargeback notices or retrieval requests. Yes, you can cancel a disputed payment by following the steps provided in the email.

You may open this article to view additional details on how to manage chargebacks and what to do if you get one: Handle chargebacks and retrieval requests for QuickBooks Payments.

Then, once everything is fixed, you can now reissue an invoice to your customer.

Lastly, you may also refer to this article to see how QuickBooks Payments deposits work in QuickBooks Online: Common questions about payments deposits in QuickBooks Online.

Please post a reply below if you have additional questions about your chargeback. I'll be more than happy to assist you again. Have a great day and take care always.

This does not answer the question: Can I cancel a disputed payment (invoice) and reissue invoice? I have the same issue and it turns out it was an error made by the customer when they entered their account number when paying (ACH error). Now the invoice is listed as 'paid' and I can't issue a new payment link. 

Hi @G-ARCH, thanks for chiming in.

I'd gladly help you fix the disputed payment in QuickBooks Online (QBO).

Generally, a chargeback will occur when a transaction you processed gets disputed and the money goes back to the payer. To handle this, you need to create first a service item to track the rejected bank transfer. I'll guide you on how.

1. Go to the Sales menu.
2. Select the Products and Services tab.
3. Click New, then choose Service.
4. Enter "Rejected bank transfer" for the name.
5. Enter "Bank transfer payment received rejected by the bank" for the description.
6. If the bank deposit is already deposited, select the bank account you deposited into for the Income account. If you haven't made the bank deposit yet, select Undeposited Funds for the Income account.
7. Hit Save and close.

Then, you'll have to create an invoice to record the rejected payment and keep your income and A/R accounts accurate:

1. Select + New.
2. Select Invoice.
3. Enter the customer who had the failed bank transfer payment.
4. Add the Rejected bank transfer item you created in Step 2 to the invoice.
5. Enter the total amount of the rejected payment.
6. Make sure Tax is not selected.
7. Select Save and Close.

Lastly, remove the payment that didn't go through from the original invoice and then move it to the invoice you just created. Here's how:
 

1. Open the invoice that has the rejected bank transfer payment.
2. Select the Payment link to open the rejected payment.
3. Uncheck the original invoice, then select the newly created one.
4. Click Save and Close.

Once completed, you can now manually receive the payment of the original invoice. For additional information, visit this link: Handle a rejected or failed bank transfer payment.

I'm also adding this article to learn how to manage returned checks in QuickBooks Online: Record a bounced check using an expense.

If there's anything else you need or questions you have in mind, don't hesitate to click the reply button. I'll be around to help you out. Take care.