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My customer's credit card payment came back denied and I was charged $10 fee. How to I account for this and invoice them again?

 
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QuickBooks Team

Re: My customer's credit card payment came back denied and I was charged $10 fee. How to I accoun...

Greetings, compelprinting.

 

I'd be delighted to help you record this in QuickBooks Online.

 

You can account this by entering a bounced check by invoice. The steps below will guide you on how to do this:

 

Create the Service Items for the payment and fee

  1. Click the Gear icon, then choose Products and Services.

  2. Select New.

  3. In the Product/Service information panel, choose Service.

  4. In the Name field, enter Bounced Check.

  5. From the Income account drop-down list, select the bank account the check was returned to.

  6. Click Save and new to create the second item.

  7. In the Name field, enter Bounced Check Fee.

  8. From the Income account drop-down list, select or add an income account called Bounced Check Fees. Alternatively, select an existing expense account that you use to track your bank charges.

  9. Click Save and Close.

Create the new invoice with the fee

  1. Click the Plus (+) icon, then choose Invoice.

  2. Select the Customer name and enter the date the check bounced in the Invoice date field.

  3. In the Product/Service column, select the Bounced Check item you created.
  4. Enter the amount of the bounced check in the Amount field.

  5. On the second line of the Product/Service column, select the Bounced Check Fee item.
  6. Enter the Amount to charge the customer for the bounced check.

  7. Select Save and close.

Record the bank service charge

  1. Click the Plus (+) icon, then choose Expense.
  2. From the Bank/Credit account drop-down list, select your bank.

  3. In the Payment date field, enter the date the check bounced.

  4. In the Category details section, enter the following details:
    - Category: Choose the expense account that you use to track bank charges
    - Amount: Enter the amount your bank charged you for the bounced check.
  5. Select Save and Close.

From there, when you receive the payment from the customer, you just need to record it and apply it to the invoice. Lastly, for additional insight about this, I recommend following this article: How to record a bounced check entered using Accounts Receivable

 

That should get you going in the right direction. Please let me know if you have any questions, or if you need additional assistance with this. I've always got your back!