> ## Documentation Index > Fetch the complete documentation index at: https://docs.withacclaim.com/llms.txt > Use this file to discover all available pages before exploring further. # Failures and reversals > Understand why payouts fail, how failure codes help you diagnose issues, and how Acclaim returns funds when a payout cannot be completed. Not all payouts complete successfully. When a payout fails, it reaches the **Failed** final state, Acclaim returns the funds to your treasury account, and you receive a specific `failure_code` and message explaining why. This guide covers what happens when a payout fails, the available failure codes, how returned funds are handled, and how to retry safely. For status transitions and lifecycle context, see [Payout lifecycle](/guides/disburse/payout-lifecycle). *** ## When a payout fails A payout fails after processing begins and Acclaim cannot complete delivery. At that point: * The payout moves to the final **Failed** state and will not be sent * Acclaim includes a `failure_code` and matching message on the payout * Funds are returned to the treasury account that funded the payout * You can review the failure in the **Console** or through webhooks and the API Fund return is part of every failed payout, not a separate outcome that applies only in some cases. *** ## Failure codes When a payout fails, Acclaim includes a `failure_code` and matching message. All API codes use the `payout.*` format. The groups below describe what each failure means in plain language, with the exact code shown for reference. ### Beneficiary account * **Account closed** — The beneficiary account is closed and cannot receive funds.\ Code: `payout.beneficiary_account_closed` * **Invalid account** — The beneficiary account details are invalid.\ Code: `payout.invalid_beneficiary_account` * **Account not found** — The beneficiary account could not be found.\ Code: `payout.beneficiary_account_not_found` * **Account inactive** — The beneficiary account is inactive and cannot receive funds.\ Code: `payout.beneficiary_account_inactive` * **Account restricted** — The beneficiary account is restricted and cannot receive funds.\ Code: `payout.beneficiary_account_restricted` ### Amount and currency * **Insufficient balance** — There are insufficient funds available to complete the payout.\ Code: `payout.insufficient_balance` * **Invalid amount** — The payout amount is invalid.\ Code: `payout.amount_invalid` * **Currency not supported** — The selected currency is not supported for this payout.\ Code: `payout.currency_not_supported` * **Account currency mismatch** — The beneficiary account does not support the selected payout currency.\ Code: `payout.account_currency_mismatch` ### Bank details * **Invalid bank information** — The bank account information provided is invalid or incomplete.\ Code: `payout.invalid_bank_information` * **Invalid routing number** — The routing number provided is invalid.\ Code: `payout.invalid_routing_number` * **Invalid IBAN** — The IBAN provided is invalid.\ Code: `payout.invalid_iban` * **Invalid beneficiary name** — The beneficiary name provided is invalid or does not match the account details.\ Code: `payout.invalid_beneficiary_name` ### Compliance * **Sanctions blocked** — The payout could not be completed due to sanctions restrictions.\ Code: `payout.sanctions_blocked` * **Compliance blocked** — The payout could not be completed due to compliance requirements.\ Code: `payout.compliance_blocked` * **Purpose of payment rejected** — The purpose of payment is not valid for this payout.\ Code: `payout.purpose_of_payment_rejected` ### Processing * **Cutoff missed** — The payout missed the processing cutoff time and could not be completed.\ Code: `payout.cutoff_missed` * **Duplicate payout** — A duplicate payout was detected and was not processed.\ Code: `payout.duplicate_payout` * **Bank returned payout** — The beneficiary's bank returned the payout.\ Code: `payout.beneficiary_bank_returned` * **Recall requested** — A recall was requested for this payout.\ Code: `payout.recall_requested` * **Processor unavailable** — The payout processor is temporarily unavailable. Please try again later.\ Code: `payout.processor_unavailable` * **Processor failure** — The payout could not be completed due to a processing error.\ Code: `payout.processor_failure` * **Unknown failure** — The payout could not be completed for an unknown reason.\ Code: `payout.unknown_failure` *** ## Returned funds When a payout fails, Acclaim returns the funds to the treasury account that funded the payout. The payout remains in **Failed**, and a treasury transaction records the return when applicable. Timing depends on the payout method and external network, but the return is automatic. You do not need to request it separately. ### Cross-border and FX payouts For cross-border payouts, currency conversion may occur before delivery. If the payout fails after FX has already run: * The returned amount is in the **payment currency** * Funds are **not automatically converted back** to the original funding currency * The original FX transaction has already been completed If the payment currency cannot be held in your treasury account balance, Acclaim automatically converts returned funds back to the funding currency when the payout fails. You can then: 1. **Retry using the returned funds** — create a new payout funded with the returned payment-currency balance 2. **Convert back to the original currency** — perform a new FX conversion if you need funds in the original funding currency *** ## Retrying failed payouts After funds are returned and the underlying issue is fixed, you can send the payout again. Best practice: 1. Review the `failure_code` and message 2. Correct the issue, such as payee details or payout method 3. Create a new payout once funds are available again Avoid retrying without changes. The same issue is likely to cause another failure. *** ## Monitoring and alerts To respond quickly to failed payouts: * Monitor payouts in the **Console** * Track status changes via **webhooks** * Set up internal alerts for **Failed** payouts For webhook and API handling details, see [Failed payouts](/developers/failed-payouts). *** ## Summary * **Failed** is a final state reached when a payout cannot be completed after processing begins * Every failed payout returns funds to the treasury account that funded it * Use `failure_code` and the matching message to diagnose the issue; see [Failure codes](#failure-codes) above * FX payouts may return funds in the payment currency; currencies that cannot be held in your treasury account are converted back to the funding currency automatically * Most failures can be resolved and retried after correcting the issue