Hello there, LordNorth. I understand what you're going through in this refund and chargeback that is combined by your bank and reflected as one transaction. I'll guide you on how you can record this in QuickBooks Desktop.

Yes, I agree that tracking this as the deposit isn't feasible since we're unable input a negative deposit amount under the Bank Deposit feature in QBDT.

What we can do is manually record this transaction because QuickBooks Desktop doesn't track a refund and chargeback in a single transaction. Therefore, you'll need to create separate entries to track the chargeback and the refund.

We can generate a check affecting Accounts Receivable and then establish an expense fee for the chargeback in QBDT. This action will result in a positive balance on the customer profile.

Here's how:

1. Click Banking.
2. Choose Write Checks.
3. Select the Bank account where the check will be posted.
4. Enter the name of the customer in the Pay to the Order.
5. Type in the total amount of the refund or credit.
6. In the section for Memo, enter the Credit Memo numbers.
7. Go to the Expenses tab.
8. Choose Accounts Receivable in the Account column.
9. Enter the amount of the refund and the name of the customer.
10. Once done, click Save and Close. 

However, if this merged payment and chargeback appears on your downloaded transaction, we need to ignore it, since we'll have to record them separately as I've mentioned earlier.

To eliminate the transaction, navigate to the Transaction List and select the checkbox next to the bank transaction you wish to exclude. Below are the steps outlined for your reference.

1. Access your QuickBooks Desktop company.
2. Go to Banking, and then select Bank Feeds.
3. Select the Bank Feeds Center, and then choose the Bank account.
4. Click the Transaction List to see the transactions.
5. Tick the box beside the transaction that you want to get rid of.
6. In the Batch Actions button, select Ignore.

As always, it'll be best to refer to your bank statement to avoid discrepancies when reconciling your account.

You can also consider getting some advice from your accountant to keep books accurate and ask what expense accounts to use for this specific transaction. Do you want to have one? Visit this article: The ProAdvisor Program.

Let me know if you have other concerns about managing your account in QuickBooks Desktop, we are here to support you. Have a fantastic day.