A bank transfer from my customer was reversed, what should I do?

A transaction fee will apply when a customer pays an invoice using QuickBooks Payments, regardless of whether the payment is successful, ekta1.

I recommend contacting our QuickBooks Payments Support Team for assistance in resolving the fees in your account. 

In the meantime, we need to record the bounced payment and create an additional entry for the fee. Here are the steps we need to follow:

1. Create a bank fee service item
2. Remove the bounced payment from the invoice.
3. Record the bounced as an expense.
4. Link the expense and the unapplied payment.
5. Send the updated invoice to the customer.

Here are the detailed steps of each process:

Create a bank fee service item

1. Click the Settings (gear icon) from the Dashboard page in the upper-right corner.
2. Select Products and Services, then click the New button
3. Choose Service and enter the Name for the bank fee.
4. Set the Income account field and click Save and close.

Remove the bounced payment from the invoice

1. Open the affected invoice and click the Payment on [date] hyperlink in the Deposit section at the bottom of the invoice.
2. On the Receive Payment page (opens a new tab), remove the check mark on the invoice.
3. Click Record and close.
4. When the You didn't select any invoices prompt appears, choose Save as a credit.
5. Select Yes to confirm.

Record the bounced as an expense

1. Press the Create button from the Dashboard page in the upper-left, then select Expense.
2. In the Category details section, fill in the following fields:
   • CATEGORY - Select Accounts Receivable.
   • AMOUNT - Enter the amount of the bounced payment.
   • CUSTOMER/PROJECT - Choose the affected customer.
3. Click Save and close to record the expense.

Link the expense and the unapplied payment

1. Press the Create button from the Dashboard page in the upper-left, then select Receive payment.
2. Select the affected Customer and fill in the necessary details.
3. In the Outstanding Transactions section, mark the Expense you created for the bounced payment.
4. In the Credits section, mark the Unapplied payment.
5. Click Record and close to save the changes.

Send the updated invoice to the customer

1. Open the existing invoice.
2. In the Product or service section, and add the bank fee service item.
3. Enter the amount, then Review and send.
4. Click Send invoice to finalize the invoice and send it to the customer.

You can notify your customer about the additional fee so they can provide the exact payment amount, helping to prevent any potential bank-related issues when making an online payment.
 

While the process is lengthy, rest assured that it will help keep your QuickBooks Online data accurate and up-to-date. Please don’t hesitate to reach out to us if you need assistance with the steps or have any other concerns.