If a payment was sent to the wrong vendor in QuickBooks, you generally need to reverse/void the payment if it hasn’t cleared yet, or reclass it and settle with the vendors if it has already cleared. The exact steps differ depending on whether this was just a QuickBooks posting mistake, or real money already moved via ACH/check/card.

Step 1: Identify what actually happened

• Did money actually leave your bank?

  • If no (data-entry only): You usually just edit, un-apply, or delete the payment and reapply it to the correct vendor.​

  • If yes (ACH, check, or card already processed): You must both fix the accounting in QuickBooks and resolve the real-world payment (reverse/void, refund, or ask the wrong vendor to return funds).​

• Which QuickBooks product and payment type?

• QuickBooks Online vs Desktop.

• ACH via QuickBooks Payments/Bill Pay, paper check, or card.

Step 2: If this is only a posting error in QuickBooks

If you recorded the payment to the wrong vendor in QuickBooks, but the bank transaction itself is fine:

• In many cases you can simply edit the transaction and change the vendor, as long as the period is not locked and you are not breaking a closed reconciliation.​

• If the payment is tied to a specific bill or invoice:

  • Open the payment, un-apply it from the wrong vendor bill, and then delete or edit the payment so it no longer belongs to the wrong vendor.​

  • Re-create the bill payment for the correct vendor and apply it to the correct bill.​

For older periods or where you cannot edit directly, accountants often use a clearing account and journal/check entries so that Accounts Payable remains correct without disturbing prior reconciliations.​

Step 3: If money really went to the wrong vendor

If you sent an ACH or other electronic payment through QuickBooks:

• Check if the payment can still be voided or reversed:

  • QuickBooks Payments and merchant accounts often allow a Reverse / Void / Credit option for recent transactions (credit card or ACH).​

  • Log into your QuickBooks Payments / Merchant Center and look for Reverse a Transaction or Void on that payment.​

• If the ACH has already settled and cannot be reversed:

• Contact the wrong vendor and request a refund or return of funds; when refunded, you record a bank deposit using the same account and then re-issue payment to the correct vendor.​

• In QuickBooks, you may record:

  • A deposit for the returned amount (back to the same expense/AP account).​

  • A new bill payment or check to the correct vendor.

• If a check was sent and cashed by the wrong supplier, the resolution is largely outside QuickBooks: you must negotiate a return or credit with that supplier and then mirror what happens (refund, credit memo, etc.) inside QuickBooks with deposits/credits.​

Step 4: When a vendor payment is declined or rejected

If the problem is not “wrong vendor” but vendor payment declined by QuickBooks:

• Common reasons:

  • Insufficient funds, incorrect bank details, invalid routing/account numbers, frozen or closed account, or internal risk rules.​

• Actions to take:

• Verify vendor bank/card information (routing, account number, name exactly as on the bank account).​

• Ask the vendor to check with their bank for holds, limits, or fraud flags.​

• If all details look correct and the payment keeps failing, contact QuickBooks Payments/Support to review decline codes and logs.​

No money should be considered paid until the declined transaction is successfully re-processed, so you usually leave the bill open and try again or pay by a different method.

Step 5: Practical safety tips going forward

• Turn on strong review controls:

  • Require a second person to review vendor name and bank details before releasing high-value payments.

• Reconcile vendor accounts and run Transaction List by Vendor or AP reports regularly to catch misapplied bill payments early.​

• For ACH/Bill Pay, always double-check that vendor bank information is domestic and formatted correctly to avoid rejections.​

If you share whether this is QuickBooks Online or Desktop, and whether it was ACH, check, or card, a more exact step-by-step (screen-by-screen) set of actions can be outlined.