Hello, VCSLLC. I can provide you with some details on how you can handle a dispute customer's payments in QuickBooks Online.

Bank transfer payments can fail because of incorrect bank info or insufficient funds. So you'll need to make you've checked all the information before proceeding to the final steps in managing customer payments.

I'll show you how to handle this situation to keep your books in order. Let's start by locating where the failed payment in QuickBooks.

Here's how:

1. Click on the + New button and then Bank Deposit.
2. Review the QuickBooks Payments section.
3. Look for the payment on the list. If you see it, it isn't deposited yet. If you don't, it is deposited.

After then, you'll want to create a service item to track the rejected bank transfer then name it "Rejected bank transfer" and enter "Bank transfer payment received rejected by the bank" for the description page. Then, select the bank account you deposited it or you can select the Undeposited funds if it's not deposited yet.

Once done creating a service item, you may create an invoice to record the rejected payment. Recording it this way keeps your income and A/R accounts accurate. See the steps below:

1. Click on the + New button and select Invoice.
2. Enter the customer who had the failed bank transfer payment.
3. Add the Rejected bank transfer item you created in step 2 to the invoice.
4. Enter the total amount of the rejected payment.
5. Make sure Tax is not selected.
6. Then click Save and close.
    

For the succeeding process, please refer to this article for more detailed steps: Handle a rejected or failed bank transfer payment.

Furthermore, if you want to just pay by check and to avoid the same thing happened if the future, you'll want to uncheck the online payments option in the invoice. You can refer to the screenshot below:

However, if the issue persists you'll need to reach out to our Technical Support team so they can check further about the issue and provide you with some workaround or the resolution process.

You can always count on me if you need more help you managing your customer payments or other banking concerns in QuickBooks. Stay safe!