I have an invoice that is saying that it’s disputed it has already been deposited. What does that mean?

I'm here to help you with handling disputed payments in QuickBooks Online (QBO), @ReneebGreat.

In QBO, when a cardholder disputes an invoice payment, it's called chargeback. Usually, disputed payments/chargebacks can happen for a variety of reasons. They may be the result of a mistake or fraud.

To handle this kind of situation, either you process a refund or record the transaction as a business expense.

To process a refund:

1. In the left menu, click on + New button.
2. Select Refund Receipt.
3. Choose the customer's name from the Customer drop-down, and click the Refund Receipt date.
4. Select the Payment method and Refund from account.
5. Enter the Product/Service and Amount.
6. Click Save and close.

To record a business expense, here's how:

1. In the left menu, click on + New button.
2. Select Expense.
3. From the Payee drop-down, select the customer's name.
4. Choose the Payment account, Payment date, and Payment method.
5. Select the account that you charge for the transaction from the Account column.
6. Enter the Amount.
7. Click Save and close.

For more information on the process I've provided above, see these articles:

• Void or refund customer payments in QuickBooks Online
• Enter and manage expenses in QuickBooks Online

To learn more about chargebacks and what you'll need to do if you encounter one, here's a resource you can visit: Handle chargebacks and retrieval requests for QuickBooks Payments.

You can always get back here if you have other QuickBooks-related concerns. I'll be here to help you. Stay safe.

I have an additional question related to this issue that I'm hoping you can help with. I received a notice from QB that my customer's ACH payment was canceled. When I log in to my bank account, the payment has been deposited into my account. When I log in to my merchant account, it has two payments from the customer: the first payment was declined, and the second payment says disputed. This is from a couple of days ago, and so far, I see no debit to our account for the amount of the payment. Should I expect the payment to be taken back? How long would that take? It was a valid charge to us, so is there anything I can do to verify the payment? Thanks for your help.

Yes, disputed payments from customers will be withdrawn from your account, and you'll be charged for the cost of the refund, SarahCO.

Generally, chargebacks occur when a transaction you processed gets disputed, resulting in the payer receiving their money back. To handle this, a chargeback notice or retrieval request will be sent to your email including specific information to help settle the payment, and may also require you to submit evidence.

You can learn more about the necessary requirements in this article: Respond to a chargeback.

Once we receive the submitted documents, we'll verify that they meet your financial institution's requirements. This process takes up to 2-5 business days, in accordance to the terms and conditions outlined in the agreement you signed when activating your account.

After your financial institution reviews and validates your chargeback requirements, payment charges will be reflected on your bank statements. You can then verify these payments from there.

Additionally, here's a reference to help you manage returned checks in QuickBooks Online: Record a bounced check using an expense.

I’ll be available anytime on this thread for any additional queries.

Thanks for your help. I got some more information, and the chargeback did come through on my account this morning. The return reason is "R03 - NO A/C UNABLE TO LOCATE 99980" which sounds like they possibly entered their account number incorrectly. I've reached out to the customer, but in the meantime, I wanted to check with you. It seems to me that if they entered their account number incorrectly, there's no point in me filing a rebuttal, because that doesn't miraculously give me the correct account number. Does that sound right to you?

Also, the "respond to a chargeback" article that you linked to mentioned that for some transactions the system only checks the first 6 digits of the card before approving it. My guess is this is what happened here because of the return reason. It doesn't make sense for me that I would be charged a fee for a chargeback when the system shouldn't have approved the payment using the incorrect account number. Is there anything I can do about that?

Thanks again for your help!

Thank you for providing additional details, SarahCO. We understand your perspective regarding the system-generated error and agree that filing a rebuttal may not be the most effective approach.

To address your concerns effectively, we recommend reaching out to our live support team again. They have the tools to confirm the exact status of the chargeback, as we cannot check it here for security reasons. They will also verify whether the dispute request was initiated on our end, allowing us to provide the most accurate information and assist you further.

Here's how you can reach them:
 

1. Go to the Help icon on the top menu.
2. Select the Search tab and enter your concern.
3. Click the Contact Us button and choose between Chat or Callback to connect with us.

You can refer to our support hours to ensure prompt assistance.

I'd also like to share these articles to gather some insights about Payments Dispute Protection:

• Payments Dispute Protection Overview
• Use Payments Dispute Protection

Feel free to click the Reply button if you have further questions or concerns.