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Y
ypoulos
January 23, 2024
Question

Charge backs and returned payments

  • January 23, 2024
  • 1 reply
  • 0 views

I have an invoice with status marked "Returned" with the red exclamation point icon. QB debited my account the same amount of the invoice. The following is the source of my confusion:

 

1. The dispute date precedes the deposit date so when I check the status it says disputed 3/17 then deposited 3/20. Shouldn't it be the other way around? I've ignored so many of these thinking the customer decided to pay me after disputing the charge because the deposit date comes after the dispute date and according to QB the invoices are paid. Makes no sense!

 

2. I contacted the customer and they have assured me there was no dispute and it turned out to be insufficient funds. So why does QB tag it as customer charge back when it wasn't? I didn't believe my customer, thought they're trying to take advantage. Wasted so much time on resolving it.

 

3. I checked bank account and sure enough the funds were debited three days after the deposit, but the invoice status still says "paid." How is that possible? My customer wants to pay me but I can't charged them because the invoice is already "paid." I tried to uncheck the payment and it gave my client a credit in the same amount. I had to create another invoice to get paid and my customer now has credit with me out of thin air. What am I missing?

 

Thank you in advance for your help!

 

 

 

 

1 reply

C
CharleneMaeF
January 23, 2024

I know this hasn't been an easy process for you, ypoulos.

 

Let me make it up to you by making sure you get a detailed explanation about this.

 

 I'd recommend contacting our QuickBooks Support Team. They're equipped with tools to check the cause. It'll also allow them to submit a ticket to our engineering team to alert them about the issue if necessary. Here's how to contact our support:

 

  1. Go to the Help (?) icon at the top.
  2. On the Assistant tab, click Talk to a human.
  3. Enter your concern in the Type something field, then click the send icon.
  4. Click on the I still need a human button.
  5. Select Get help from a human.
  6. You can either select the Chat with us or Have us call you option.

 

I appreciate your understanding on this matter. Please know that I'm determined to get this resolved.

A
Annamazing5280
May 17, 2024

You suggested I contact QB support. I need a step by step explanation for quality control of my books. Can you please give me an explanation of how to resolve this exact issue by myself?  

J
JanbonN
May 17, 2024

The chargeback process involves four key elements, @Annamazing5280. The customer, the bank, Intuit, and you. Let me provide a detailed explanation of the process. 

 

A chargeback is when a transaction you processed gets disputed and the money goes back to the payer. Below is the flow of it.

 

  1. The customer calls the bank.
  2. Bank calls Intuit.
  3. Intuit informs you of the chargeback.
  4. You respond to this by giving details about the payment in question.
  5. Intuit presents your evidence to the bank.
  6. The bank will validate the chargeback and give a decision.

 

Regarding the first concern, there's a chance that the dispute date represents the customer's bank initially declining the charge due to insufficient funds. The deposit date could indicate when the funds became available, and the bank re-authorized the payment. To verify this, I recommend reaching out to your bank.

 

For the second concern, if the customer assured you that there was no dispute and it was just due to insufficient funds, a chargeback should not have occurred. A chargeback is supposed to be initiated by the customer. You can contact our Payments support to understand why it was tagged as Returned.

 

Lastly, rather than creating a second invoice, unlinking the payment is the correct approach to make the invoice unpaid again so that you can re-send it to your customer.

 

Once you unapplied the payment, it will become a credit for that customer. To offset this, we need to recategorize and add the returned payment transaction to your bank feeds, ensuring that it's posted to Accounts Receivable (AR). Then, link the unapplied payments or credit via the Receive Payment transaction.

 

To recategorize the bounced payment and reopen the original invoice:

 

  1. Go to Transactions and select Bank transactions.
  2. Find the bounced check or returned payment in the bank feed. Select it to expand the transaction details.
  3. In the Vendor/Customer ▼ dropdown, choose the customer whose payment bounced.
  4. In the Account ▼ dropdown, select Accounts Receivable.
  5. Once done, select Add.

 

On the other hand, if your bank isn't connected to QBO, we'll need to manually create a Check posted to AR. Then, link it to the unapplied payment or credits via the Receive Payment function.

 

You can refer to this article for further information and follow step 2. If applicable, proceed with steps 3 and 4: Record a returned payment or bounced check in QuickBooks Online.

 

Additionally, you can refer to these articles to safeguard your business:

 

 

Return to this thread if you have further concerns with the chargeback process in QuickBooks. We'll be here to help.

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