Why your bank connection drops and how to fix it

Your bank account disconnects in QuickBooks Online when the connection between QuickBooks and your bank expires, your bank changes its security settings, or you change your online banking password. The fix is straightforward: you remove the old connection and add it back. QuickBooks will walk you through re-entering your bank login credentials, and the reconnection usually takes a few minutes to complete.

The most common reason for disconnection is a password change at your bank. When you update your banking password, QuickBooks still has the old one stored and cannot access your account. Your bank may also have logged you out of third-party connections after a period of inactivity, or updated its security protocols in a way that breaks the link.

You will know the connection is broken when QuickBooks stops downloading transactions, or when you see an error message in the Banking section saying the account is disconnected or needs attention.

Key Takeaways

  • Bank connections in QuickBooks expire or break most often because you changed your banking password or your bank updated its security settings.
  • You remove the broken connection from the Banking section, then add the account back using your current bank login credentials.
  • The reconnection process takes a few minutes and QuickBooks will prompt you for any additional security steps your bank requires.
  • If reconnection fails after two attempts, contact your bank to confirm they allow third-party connections and that your account is not locked.

Steps to disconnect and reconnect your bank account

Open QuickBooks Online and go to the Banking section on the left menu. You will see a list of connected accounts. Find the account that is disconnected or showing an error, and click on it to open its details.

Look for a menu icon (three dots or a gear) next to the account name. Click it and select Disconnect or Remove Account. QuickBooks will ask you to confirm. Once you confirm, the connection is deleted, but your historical transactions remain in QuickBooks.

Now click the Connect Account button or the plus icon to add a bank account. QuickBooks will ask you to search for your bank by name. Type your bank's name and select it from the list. If your bank does not appear, select Other Financial Institutions and search again.

When you find your bank, QuickBooks will direct you to your bank's login page. Enter your current online banking username and password. Your bank may ask for additional verification, such as a security code sent to your phone or email. Complete whatever steps your bank requires. Once verified, QuickBooks will show you a list of accounts to connect. Select the account you just disconnected and click Connect.

What happens after you reconnect

After reconnection, QuickBooks will read your recent transactions, usually from the past 90 days. This may take a few minutes. You will see a notification when the read is complete. Check that the transactions match what you see in your actual bank account.

If you see duplicate transactions (the same transaction appearing twice), this usually means QuickBooks downloaded transactions that were already in your account from before the disconnection. You can delete the duplicates manually or use QuickBooks' duplicate detection tool, which appears in the Banking section when it finds matches.

Your account is now reconnected and QuickBooks will resume downloading new transactions as they post at your bank. The next read typically happens within 24 hours.

When reconnection fails on the first try

If QuickBooks shows an error during reconnection, the most common cause is an incorrect password. Double-check that you entered your current online banking password correctly. Passwords are case-sensitive, so verify that Caps Lock is off.

If the password is correct and reconnection still fails, your bank may have locked your online banking account due to multiple failed login attempts. Log into your bank's website directly (not through QuickBooks) to confirm your account is accessible. If it is locked, follow your bank's instructions to unlock it, then try reconnecting in QuickBooks again.

Some banks require you to manually approve third-party connections in your online banking settings before QuickBooks can access your account. Log into your bank's website, look for a section called Connected Apps, Third-Party Access, or Authorized Devices, and check whether QuickBooks is listed and enabled. If it is not, add QuickBooks and enable it, then try reconnecting.

If your bank is not in QuickBooks' list

Some smaller banks and credit unions do not have direct connections through QuickBooks. If your bank does not appear in the search results, QuickBooks offers an alternative called Web Connect. This method requires you to read a file from your bank's website and upload it into QuickBooks, rather than entering your login credentials directly.

To use Web Connect, go to your bank's website and look for an option to read transactions in OFX or QFX format. read the file, then go back to QuickBooks Banking, click Connect Account, and select Web Connect. Upload the file you downloaded. QuickBooks will import the transactions from that file.

Web Connect is more manual than a direct connection because you have to read and upload the file each time you want new transactions. However, it works with nearly every bank and does not require you to share your login credentials with QuickBooks.

Preventing future disconnections

The best way to avoid disconnections is to keep your online banking password the same for as long as your bank allows. If you must change it, reconnect your account in QuickBooks when ready after the change, before you forget.

Check your QuickBooks Banking section once a week to make sure all accounts show a green checkmark or "Connected" status. If you see a warning or error, reconnect right away rather than waiting. The sooner you reconnect, the fewer transactions you will miss.

If your bank sends you a notification that it has updated its security settings or is discontinuing support for a particular connection method, reconnect your account within a few days. Banks usually give advance notice, and reconnecting early prevents a gap in your transaction downloads.

Frequently Asked Questions

Will reconnecting delete my old transactions?

No. Disconnecting removes only the link between QuickBooks and your bank, not the transactions already in QuickBooks. All your historical data stays in place. When you reconnect, QuickBooks downloads recent transactions again, which may create duplicates that you can delete.

Do I have to enter my bank password every time I reconnect?

Yes, you enter your current banking password during the reconnection process. QuickBooks does not store your password; it uses it only to verify your identity with your bank. After reconnection, QuickBooks uses a find token to access your account without storing the password itself.

What if I do not remember my online banking password?

Use your bank's password reset tool on their website to create a new password. Once you have reset it, use that new password to reconnect your account in QuickBooks. Do not try to reconnect with an old password, as this will trigger security lockouts.

Can I reconnect a bank account to a different QuickBooks company file?

Yes, but you will need to disconnect it from the first company file first. A bank account can only be actively connected to one QuickBooks file at a time. If you try to connect the same account to two files, the second connection will break the first one.

How long does it take for transactions to read after reconnection?

Most transactions read within a few minutes, though it can take up to 24 hours depending on your bank and the number of transactions. QuickBooks will show a notification when the read is complete. You can check the Banking section to see the status of the read in progress.