How do I fix a contractor payment that was made using the wrong banking information

Correcting a contractor payment made with incorrect banking information is clearly a top priority, clayr99. Let's work together to make sure the contractor's payment goes to the right bank account.

First, we must ensure that the contractor's direct deposit payment is voided or deleted. But, it's essential to consider certain factors beforehand. Since deleting or voiding a payment depends on the processing time and product that you have. Thus, if you haven't yet sent your contractor's payments to our system, you may be able to delete or void them. If the payment has already been offloaded or processed, you can no longer cancel or delete the transaction.

To delete or void unprocessed direct deposit, you can follow these steps:

1. Go to Expenses, then Vendors.
2. Select your contractor.
3. Look for the payment you want to delete or void, then select View/Edit.
4. Select Delete or Void.
5. Select Yes to confirm changes.

Otherwise, If you successfully transmitted a direct deposit payment to an incorrect bank account, you should normally receive an email from Intuit regarding an unsuccessful direct deposit with a return code. If that's the case, you can Create a Journal Entry to offset the contractor's payment. After that, you can change the contractor's banking information. 

Like this:

1. Go to Payroll, then Contractors.
2. Click on Bank account to edit.
3. Enter the correct bank details
4. Select Save.

Once done, you can resend the direct deposit payment or hand a paper check to your contractor. Apart from that, if the payment is successful and is deposited to a live account, you can consider processing a direct deposit reversal.
 

You can check out the details of the return code in this article: Understand the ACH (Automated Clearing House) return code reference chart.

Please let me know if you still have other concerns about contractor payments, I'll be here to assist. Have a great day!