Bank Services / Bank Transactions / Reverse Transactions.  Reverse the payment and then re-enter to correct vendor. 

That works if we have issued a cheque. It doesn't work for credit card postings.

That is odd.  That is not my experience.  When you say credit card postings - do you mean that the payment code is assigned to a credit card payment type?  Or is there some other way you are identifying credit card payments? 

Yes it directly hits the bank entries - because we first pay using our credit card and later just reconcile the invoices that are posted to the credit card payments made.

Yes it directly hits the bank entries - because we first pay using our credit card and later just reconcile the invoices that are posted to the credit card payments made.