How to Fix Error: “QuickBooks Is Unable To Verify Financial Institution”?

I am trying to download bank transactions into QuickBooks Desktop but it fails to verify the financial institution. What to do?

Asked on January 30, 2019 in Banking.
1 Answer(s)

Hi Wayne,

Financial transactions are the most important part of any business so this error becomes a very critical issue. It may hamper your business workflow. This usually happens when the link between bank and QuickBooks is broken. QuickBooks connect your financial institution in two ways:

Web connect: In web connect user download QBO format file from the bank and they import into QuickBooks, They match all transactions manually and add into check register. In this connection type if you will click on download new transaction it will take you to your bank website by any browser and will ask you to login every time you try to click download. This connection type is very easy to resolve if there is some issue while downloading bank transactions. Because you can simply disconnect the current version of connection and reconnect by importing QBO file again. In this situation, you will come to know very early that you have some issue in bank information or in software. As soon as you will import QBO file from the bank into QuickBooks, it will regenerate the online connection between your bank and QuickBooks.

Direct Connect: In direct connect, there is a process in QuickBooks to connect to your financial institution. In that process, QuickBooks will ask a certain amount to security questions to very your financial institution. This is a paid service by the bank. Every bank does not allow to connect QuickBooks directly. This is the easiest way to download financial transaction because you can just click on update bank transaction and after entering login password all transaction will be downloaded into your QuickBooks. But again it will not directly go to check register, you have to match each transaction from bank feed center and add them. If you face any issue while downloading transactions it because very hard to analysis that issue is from bank side or within the software. The most issue that user face in QuickBooks while downloading bank transactions is “QuickBooks is unable to verify the financial institution”.

Following are the possible reasons for such error messages:

    • You are using the absolute version of QuickBooks. It means QuickBooks launches a new version every year and after a certain period of time QuickBooks make their older version not compatible with most of the features. So make sure you are using compatible version because it will not import QBO files.


    • Your financial institution does not allow QuickBooks to download transaction. There are lots of financial institution that does not provide QBO format file to the user.


    • If you are using a corrupted QBO format file to import. While you are downloading QBO file from your bank due to any reason if internet fluctuates or any virus will infect your file. In this case, you will not be able to import financial transactions.


    • If you are using QuickBooks Canadian version and trying to import US financial institution transaction.


    • If the QBO file is not directly downloaded from the financial institution website instead created from CSV or excel file by any third party applications.


The quick fix of this issue is as follows:

    • Go to C drive and run a search command for “fidir.txt” and that file with notepad.


If you are using windows 7, 8 or 10 go to location C:\ProgramData\Intuit\QuickBooks20XX\Components\OLB\branding\filist

If you are using Windows XP

C:\Documents and Settings\All Users\Application Data\Intuit\QuickBooks   20XX\Components\OLB\branding\filist

    • Look for your financial institution name. Take note of all numbers in 4 sets like “xxxx xxxx xxxx xxxx”


    • Open .QBO file in notepad and search for <FID>, <BANKID> or <BID> and then change the number beside the characters with the number present in FIDIR.


    • Now save the Changes as .QBO



Go back to QuickBooks and try to import .QBO file and you will be able to import all transaction successfully. If you still have some issue please contact us.

Answered on February 22, 2019.

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