International payment returned

Why banks send international transfers back

When you see an international payment returned, your money’s been sent back because the bank at the destination, or one somewhere in the process, couldn’t put it into the account you wanted. Don’t worry, the funds aren’t lost, they move back through a different set of steps, which can take a while.

Banks usually reject payments for reasons like mismatched or incorrect account numbers, IBANs, or BIC/SWIFT codes. Sometimes, the recipient’s account can’t take payments in that currency, or the name provided doesn’t match the bank’s records. If paperwork’s not clear, the compliance team may not sign off, or a rule unique to the bank means the transfer gets turned back. Each of these causes the payment to be returned without reaching its destination.

Why you might not get the full amount returned

When your payment comes back, the sum is often smaller than what you originally sent. Here’s why: each bank, especially those in the middle, can take off service fees. And when the funds head back to you, that route often passes through the same intermediaries, who may deduct their own charges again. Sometimes, the bank returning the money charges a special fee as well. You’ll see the exact amount refunded, along with the reason for the return, in the notice your bank sends you.

Say a company wires 1,000 units of currency. A fee gets deducted before it leaves the country, and then the return trip is charged again. That’s how you could end up with less than you started with, even though the recipient never saw the funds. The shortfall comes from charges linked to both legs of the transfer.

Steps to check and resend your international payment

Before resending, take a moment to verify every detail. You can check your information against the explanation in our bank details for international payments guide.

1. Ask your bank for their official reason for returning the funds, and note how much they credited back.
2. Double-check the beneficiary’s info from a safe source like a signed contract or by calling someone you know at the company, avoid relying on emails, as these could be tampered with.
3. Look into the currency, the account type, and whether it can actually receive payments in that currency.
4. Add the purpose and payment reference the destination bank expects. These are explained in our purpose of payment codes guide.
5. Wait until your refund clears before you send the payment again, so there’s no double payment.

Frequently asked questions