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Not all payouts complete successfully. Failures and reversals occur when a payout is rejected during processing or cannot be completed after submission. Acclaim surfaces clear statuses, failure reasons, and next steps so issues can be resolved quickly.

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Failure states

A payout is considered failed when it reaches the Failed status. Failures occur after a payout has been submitted for processing and cannot be completed.

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Common failure causes

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Incorrect routing information

Details may be present but invalid for the selected payout method. Examples:
  • Incorrect account number or IBAN
  • Invalid routing or bank code
How to resolve:
  • Correct the payout method details
  • Re-validate before retrying

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Rejected by bank or payment network

A payout may be rejected after submission. Examples:
  • Account closed or invalid
  • Recipient name mismatch
  • Incorrect entity type (individual vs business)
  • Bank or network rejection
How to resolve:
  • Review the failure reason
  • Update payee or payout details
  • Retry the payout

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Compliance or processing issues

Payouts may fail due to regulatory or processing constraints. Examples:
  • Country or currency restrictions
  • Sanctions or compliance checks
  • Processing limitations
How to resolve:
  • Review the failure reason
  • Adjust payout configuration if possible
  • Contact support if needed

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Reversals

A reversal occurs when a payout cannot be completed and funds are returned to your balance. Reversals may happen when:
  • A payout fails after funds were already submitted
  • A bank or network returns the funds
  • Delivery cannot be completed after initial processing

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FX failures and returned funds

For cross-border payouts, currency conversion may occur before delivery. If a payout fails after FX has been executed:
  • The converted amount (payment currency) is returned to your treasury
  • Funds are not automatically converted back to the original funding currency
This means:
  • You now hold funds in the payment currency
  • The original FX transaction has already been completed

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How to proceed

You have two options:
  1. Retry using the converted funds Create a new payout funded with the returned destination currency amount
  2. Convert back to the original currency Perform a new FX conversion to return funds to the original funding currency

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How reversals work

  • Funds are returned once the reversal is completed
  • The payout remains in a final state (typically Failed)
  • Timing depends on the payout method and external network
Reversals are handled automatically when possible.

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Retrying payouts

Failed payouts can typically be retried after resolving the underlying issue. Best practice:
  1. Identify the failure reason
  2. Correct the issue (e.g. payee details, payout method)
  3. Create or retry the payout
Avoid retrying without changes, as the payout is likely to fail again.

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Monitoring and alerts

To stay ahead of issues:
  • Monitor payouts in the Console
  • Track status changes via webhooks
  • Set up internal alerts for Failed payouts
This allows you to respond quickly and minimize delays.

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Summary

  • Failed indicates a payout could not be completed after processing
  • Failures are typically caused by invalid details, bank rejection, or compliance issues
  • Reversals return funds when delivery cannot be completed
  • For FX payouts, the converted amount is returned and must be reused or converted again
  • Most failures can be resolved and retried after correcting the issue
Last modified on March 29, 2026