Reason for Cancellation/decline of Payout

Last updated: June 12, 2026

When a payout shows a failed status, you can now view the reason for the failure via webhooks or directly in the API response.

Alternative Method: View Directly in Payout Details

You can also find the failure reason by clicking into the payout in your dashboard and checking the status on the right-hand tab.

This message provides the specific cause of the payout failure, allowing you to troubleshoot or take corrective action.

All Error Codes

Code

Message

Should I Retry?

payee_verification_failed

The payee verification failed.

❌

insufficient_funds

There are not enough funds to complete the payment.

✅

account_closed

The beneficiary account is closed.

❌

account_blocked

The beneficiary account is blocked. The end customer will need to contact their bank directly to resolve this.

❌

invalid_account_format

The beneficiary account format is invalid.

❌

invalid_instruction

The payment format is invalid.

❌

invalid_amount

The payment amount is invalid.

❌

invalid_time

The payment did not meet the cut-off time.

✅

duplicate_transaction

The payment has already been processed.

❌

system_error

There was a system error while processing the payment.

✅

provider_system_error

There was an upstream system error while processing the payment. This is an issue on our banking provider's side. Please reach out to support for assistance.

✅

rejected_by_correspondent_bank

The payment was rejected by the correspondent banking.

❌

blocked_by_review

There was a problem processing the payment. This means the payout was blocked by our compliance team.

❌

unknown

An unknown error occurred while processing the payment. For SEPA payouts, this typically indicates the receiving bank was unavailable due to maintenance.

✅

unknown - Retry the payout after some time, as this is typically a temporary issue with the beneficiary's bank infrastructure.

unknown - Contact the beneficiary's bank to confirm they are ready to accept incoming payouts, then retry the payout.

payee_verification_failed - Triggered when verification of Payee (VoP) fails, meaning the beneficiary details you provided don't match the actual account information. This can occur due to mismatches in the account holder name, IBAN, or other account details. Action: Verify and correct all destination account details including the account holder name, IBAN, and other beneficiary information. In rare cases, VoP can fail due to the creditor bank's setup; if all details are correct but it still fails, ask the user for an alternative bank account.