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: In the left menu, click on + New button. Select Refund Receipt. Choose the customer's name from the Customer drop-down, and click the Refund Receipt date. Select the Payment method and Refund from account. Enter the Product/Service and Amount. Click Save and close. To record a business expense, here's how: In the left menu, click on + New button. Select Expense. From the Payee drop-down, select the customer's name. Choose the Payment account, Payment date, and Payment method. Select the account that you charge for the transaction from the Account column. Enter the Amount. 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.

Question

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

Forum|Forum|4 years ago
May 12, 2022
1 reply
20 views

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QuickBooks Online

M

MirriamM

QuickBooks Team

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:

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

To record a business expense, here's how:

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

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

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.

S

SarahCO

New Member

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.

F

FateCandylaneT

QuickBooks Team

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.

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