Returned International Payment Playbook: 7 Steps to Recover Funds and Resend Correctly

Key Takeaways

• A returned international payment can take 5 to 15 business days to land back in your account via SWIFT, and banks may deduct handling fees along the way.

• The most common causes are incorrect IBANs or account numbers, beneficiary name mismatches, and compliance holds at the receiving bank.

• You can prevent most repeat failures by verifying every beneficiary detail before resending and building a structured review step into your payment workflow.

A returned international payment is one of the more disruptive things that can land in a finance team’s queue. The funds are gone, the supplier is waiting, and the path to resolution is rarely straightforward.

This playbook covers what to do from the moment you get the return notification, how to recover your funds, what to check before resending, and how to reduce the chance of it happening again.

Why International Payments Get Returned

Before working through the steps, it helps to know the most common reasons a cross-border payment comes back. The cause determines what needs to be fixed before you resend.

• Incorrect account number or IBAN. The funds could not be matched to an account at the receiving bank.

• Wrong or missing SWIFT/BIC code. The payment was routed to the wrong bank or could not be processed through the network.

• Beneficiary name mismatch. The name on the payment doesn’t match the name registered to the account. Even minor variations can trigger a return.

• Compliance or sanctions hold. The receiving bank flagged the transaction against AML or sanctions screening rules.⁴

• Account closed or dormant. The beneficiary’s account is no longer active. This is common when suppliers change banking providers.

• Insufficient information or missing fields. Some corridors require intermediary bank details, purpose of payment, or additional reference data that was missing.
  

The 7-Step Recovery Playbook

Step 1: Confirm the Return With Your Bank or Payment Provider

Don’t act on a bounce notification alone. Contact your bank or payment provider to get the official return confirmation and, crucially, the return reason code.

SWIFT returns use specific MT199 or MT299 message codes. SEPA returns use a structured reason code (e.g., AC01 for incorrect account number, AC04 for closed account).¹²

Step 2: Log the Return and Track the Timeline

Returned payments do not come back instantly. SWIFT returns typically take 5 to 15 business days depending on how many correspondent banks were involved.³

SEPA returns within the eurozone are generally faster at 3 to 5 business days, but timelines still vary by bank.²

Log the original send date, the return notification date, and the expected return date. Also note that fees can be deducted along the chain, so log the original amount sent and the amount returned so you can account for any difference.

Step 3: Notify the Supplier

Contact your supplier as soon as the return is confirmed. Share the reason, give them a timeline for resolution, and request corrected payment details if the issue was on their side.

This protects the relationship and creates the opening to request corrected bank details if that was the problem.

Step 4: Audit the Original Payment Details

Pull the original payment record and check every field before you resend. Use this as your pre-send checklist:

• Beneficiary name: Must match exactly as it appears on the bank account, not just the trade name

• Account number or IBAN: Validate digit-by-digit using the IBAN calculator if applicable

• SWIFT/BIC code: Confirm via SWIFT lookup that the code matches the correct bank and branch

• Intermediary bank details: Required for certain currencies and corridors, particularly in the US and parts of Asia

• Purpose of payment: Some countries (India, UAE, China) require a specific purpose code or reference for regulatory reporting

Step 5: Wait for Funds to Return Before Resending

Do not resend before the funds are back in your account. Resending early means you are using your own working capital for a second payment while the first is still in transit.

The exception is when your payment provider can fund the resend from their own balance and reconcile when the return arrives. Check with your provider if this is available.

Step 6: Resend With Corrected Details

Once the funds are back and the details are corrected, resend through your international payments platform. Use batch payments if you are managing multiple affected payments at once.

Note that when you resend, you get the exchange rate available at the time of the new transaction, not the original rate. If the currency has moved unfavorably in the meantime, you may end up paying more to send the same amount.

Step 7: Update Your Records and Reconcile

Once the resend is confirmed and the supplier has acknowledged receipt, close the loop in your accounting system. Document the following:

• The original payment amount and date

• The amount actually returned (after fees)

• The exchange rate difference between original send and resend

• The return reason and what was corrected

• Any updated beneficiary details saved for future payments

How to Prevent Returned Payments Going Forward

Most returned international payments are preventable. Building a few simple checks into your workflow can significantly reduce failure rates.

• Validate bank details at onboarding. Request a copy of the supplier’s bank statement header or a voided check when setting up a new beneficiary. Do not rely on details provided in an email alone.

• Run a pre-payment detail check. Before every first payment to a new supplier, re-verify the IBAN using the IBAN calculator and the SWIFT code using the SWIFT lookup tool.

• Use scheduled payments for recurring suppliers. Once a supplier’s details are verified and payments have gone through successfully, use scheduled payments to reduce manual entry and lower error risk.

• Keep beneficiary records up to date. Set a periodic review of your beneficiary database, especially for suppliers you pay infrequently. Banking details change more often than most teams expect.

Frequently Asked Questions

How long does it take for a returned international payment to arrive back?

SWIFT returns typically take 5 to 15 business days. SEPA returns within the eurozone are usually faster at 3 to 5 business days. Timelines depend on how many correspondent banks were in the chain and how quickly each one processes the return message.²³

Will I get the full amount back?

Not always. Correspondent banks and the receiving bank may deduct handling or return fees. Always compare the returned amount against what you originally sent and log any shortfall for your records and month-end reconciliation.³

What is the difference between a returned payment and a recalled payment?

A returned payment is rejected by the receiving bank and sent back automatically. A recalled payment is one you or your bank actively request to pull back after it has been sent. Recalls are more complex, not guaranteed to succeed, and can take longer, especially once funds have cleared into the beneficiary account.³

Does the exchange rate change when I resend?

Yes. When you resend, you get the rate available at the time of the new transaction. If the currency has moved unfavorably, you may pay more to send the same amount. This is one of the less visible costs of a returned payment and another reason to get details right the first time. Using a forward contract can help you lock in a rate in advance for future payments.

Conclusion

A returned international payment is disruptive, but it doesn’t have to derail your operations. With the right process, you can confirm the issue quickly, manage the timeline, and resend with confidence.

The real cost of a returned payment isn’t just the fees. It’s the time, the supplier relationship tension, and the FX exposure from resending at a different rate. Getting your beneficiary data right upfront is the most effective prevention.

How Xe Helps

• Send international payments with transparent fees and competitive exchange rates

• Manage multiple payments at once with batch payments

• Set up scheduled payments to reduce manual entry errors on recurring transfers

• Use forward contracts to lock in exchange rates and reduce FX exposure on resends

• Access dedicated support when you need help resolving a return or tracing a payment in transit

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The content within this blog post is for informational purposes only and is not intended to constitute financial, legal, or tax advice. All figures and data are based on publicly available sources at the time of writing and are subject to change. Actual conditions may vary depending on location, timing, and personal circumstances. We recommend consulting official government resources or a licensed professional for the most up-to-date and personalized guidance.

Citations

¹ SWIFT — Understanding SWIFT Messaging Standards (MT Messages) — (2024)
² European Payments Council — SEPA Credit Transfer Scheme (Returns And Reason Codes) — (2024)
³ Bank for International Settlements — Correspondent Banking And Cross-Border Payment Flows — (2023)
⁴ Financial Action Task Force (FATF) — International Standards On Combating Money Laundering And The Financing Of Terrorism And Proliferation — (2023)

Information from these sources was taken on February 20, 2026.