Fix QuickBooks is Unable to Verify the Financial Institution

Things can get really complicated if QuickBooks is unable to verify the financial institution. This error prevents you from connecting your bank account and integrating it with your accounting software.

In this article, you’ll learn about the solution for ‘Quickbooks is unable to verify the financial institution.’

Screenshot QuickBooks Is Unable To Verify the Financial Institution

How to fix web connect error when QuickBooks unable to verify financial institution?

In order to verify the financial institution in QuickBooks, you need to fix the QuickBooks web connector error step by step.

However, before you start, you should create a backup file by following the steps provided below:

  1. Go to the File menu.
  2. Click on Backup company.
  3. Click on Create Local Backup.
  4. Click on Browse and select the location to which you want to save the backup file.
  5. Enter the number of backups you want to save.
  6. Click on Ok.
  7. Click on Save it Now.
  8. Hit Next.

QuickBooks will create a backup file and give confirmation for the same.

Also, web connect isn’t supported in all versions of QuickBooks. After three years of use, such services are generally discontinued by Intuit.

Important: Download latest QuickBooks Web Connector The QuickBooks Web Connector 2.1.0.30 and older versions can be used with any QuickBooks desktop product supported by the QuickBooks SDK or the QBPOS SDK

You must also update the Internet Explorer. As it has been discontinued, you can rely on Edge to do multiple tasks. But QuickBooks still requires an internet explorer for certain functions.

Not the issue may be at your end or at your bank’s end. Let’s see the steps to resolve the issue ‘QuickBooks is unable to verify the financial institution.’

Download the web connect file

You can download the webconnect file from your bank’s website and then import it into QuickBooks.

To do so, follow the steps provided below:

  1. Go to your bank’s website and sign in.
  2. Download the web-connect file (.qbo format).
  3. Follow these steps to import the downloaded file into QuickBooks:
    • Go to the Banking menu, and select Bank Feeds.
    • Click on Import Web Connect Files.
    • Open the QBO file downloaded from the bank’s website.
    • When prompted, select the appropriate option:
      • Create a new QuickBooks account: if the bank account isn’t already connected to QuickBooks
      • Use an existing QuickBooks account: if the bank account is already connected to QuickBooks.
    • Click on Continue, then Ok.
    • You can review your transactions from the Bank Feeds Center.

Upon downloading or importing the QBO file, if you get an error, then there must be an issue with your bank. You should connect with their representatives to get your problem solved.

If the file was imported without errors, then you can follow the methods provided below.

Read More: How to Connect Bank Accounts or Credit Card Accounts in QuickBooks?

Check bank notifications

You should check the notification sent by your bank to your registered account. Banks usually inform their users about any upcoming maintenance work because of which the website or certain functionalities won’t function properly.

You should also ask your bank if they support Web connect. If they don’t, then you won’t be able to connect QuickBooks with your bank account.

Read More: How to Change Bank Account Information in QuickBooks?

Change banking mode

You can switch the banking more by following the steps provided below:

  1. Go to the Banking menu.
  2. Select Bank Feeds.
  3. Click on Change Bank Feeds Mode.
  4. Click on the Classic Mode (Register mode). The option is present under the Bank Feeds section.
  5. Now import the QBO file into QuickBooks.

If the error still doesn’t stop, then you need to follow the method provided below.

Use a test file

A test file can be used to check if QuickBooks can properly import a QBO file. You can create a sample QBO file and work from there.

Let’s look at the steps to accomplish the same:

  1. Go to the File menu.
  2. Click on New Company.
  3. Click on Express Start or Start Setup.
  4. Fill in the required fields.
  5. Enter a name for the company and add _test at the end of it to differentiate from the other company files on your system.
  6. Click on Start working.
  7. Now import the QBO file into this test company file.

If the file is properly imported, then you have a problem with settings in your company file.

To fix these errors, go back to the company file and follow the steps provided below:

Disconnect the bank account

To disconnect your account, follow the steps provided below:

  1. Launch QuickBooks and sign into an administrator account.
  2. Click on Lists menu, and go to chart of accounts.
  3. Select the account and right click on it. Select Deactivate.
  4. Click on Edit Account.
  5. Click on Bank Settings tab.
  6. Select Deactivate all online services.
  7. Click on Ok when the confirmation message appears.
  8. Click on Save and Close.

If you own QuickBooks for MAC, then follow the steps provided below:

  1. Go to the Lists menu.
  2. Select Chart of Accounts.
  3. Click on the Pencil icon.
  4. Click on Online Settings.
  5. Click on Download Transactions.
  6. From the dropdown menu, select Not enabled.
  7. Click on Ok to confirm and again Ok to close the window.

Once the account is disconnected, QuickBooks won’t download the new transactions from your bank account.

Read More: How to Import Credit Card Transactions into QuickBooks?

Reconnect the Bank Account

To reconnect your bank account with QuickBooks, follow the steps provided below:

  1. Click on the Banking menu.
  2. Click on Bank Feeds.
  3. Click on Set up Bank Feeds for an account.
  4. Enter the name of the bank in the provided field.
  5. Select your bank.

If you’re connecting your bank account to QuickBooks for the first time, then you need to go to the Enrollment site link and fill in the application to get your information verified and approve direct connect.

Read More: How to Solve QuickBooks Connectivity Issue with Bank Account and Transaction Downloading Issue?

Conclusion

Once you’ve reconnected your bank account, you can try to import QBO files. If QuickBooks is unable to verify the financial institution, then you should check with your bank. You can get in touch with our experts for better assistance.

FAQs

Q. Does direct connect require me to manually import transactions?

A. No. With direct connect; you can download your bank transactions directly into the software. You can also avail other services by connecting your bank account.

Q. What is the enrollment link?

A. The enrollment link helps you to get your information verified from your bank. This is a requirement if you’re connecting your bank account with QuickBooks for the first time.

Q. What to do when QuickBooks seems stuck and asks you to select a new or existing account when you try to download.

A. You need to check your messages by logging into your bank’s website. Look for any requests for access and approve them according to their guidelines. Contact your bank for assistance in locating the correct file. Web Connect-enabled banks and financial institutions are well-versed in dealing with such difficulties.

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