Hi there, margie286.
Thank you for posting here in QuickBooks Community.
To show it as returned on the customer side, let's enter a returned or bounced check using Write Check. Then change the payment entry to apply to the bounced check.
Here's how to enter the bounced check into the Check window
1. Click the Plus icon at the upper right corner.
2. Under Vendors, choose Check.
3. From the Payee drop-down list, select the name of the customer who issued the bounced check.
4. Select your bank from the Bank Account drop-down arrow.
5. In the Payment date field, enter the date the check bounced.
6. Clear the Print Later checkbox and enter a note, such as NSF check, in the Check number box.
7. From the Account details, choose Accounts Receivable from the drop-down list in the Account column.
8. In the Amount field, enter the amount of the bounced check.
9. Choose the Save and close button.
Once done, the next step is to change the payment entry to apply to the bounced check.
Follow the steps below:
1. Select Sales on the left panel. Then Invoice tab.
2. From the Customer tab, choose the name of the customer who issued the bounced check to open the Transaction List.
3. Locate and choose the payment record you created for the bounced check.
4. Select the checkbox of the bounced check (NSF check) entry.
5. Clear the checkbox of the invoice the payment was originally applied to.
6. Choose the Save and close button.
The payment entry is changed to apply to the bounced check entry.
To finish the process please check this article and follow the step three to seven: How to enter a returned or bounced check using Write Check.
To sort it out why the invoice shows paid even the customer did not pay, I suggest contacting Merchant Services Support Team. They have the tools to pull up and to help you further with the status of the invoice.
Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.
