Why was my transfer returned by the receiving bank?

Last updated: May 14, 2025

Context

When making ACH or wire transfers, sometimes payments may be returned by the receiving bank. Understanding why a payment was returned can help ensure successful transfers in the future.

Answer

There are several common reasons why a bank may return a payment:

No Account / Unable to Locate Account

The most common reason for returned payments is that the receiving bank cannot locate the account using the provided information. This can happen if:

  • The account number is incorrect

  • The routing number is incorrect

  • The account has been closed

  • There is a mismatch between the account holder name and account number

Other Common Return Reasons

  • Non-Transaction Account - The receiving account does not accept this type of transaction

  • Credit Entry Refused by Receiver - The recipient's bank has refused the payment

  • Third Party Payment Rejected - The bank does not accept payments that appear to be for a third party

Important: Banks often provide limited details about why a payment was returned. If you receive a returned payment, double-check all account information before attempting another transfer. If you're certain the banking details are correct, contact the receiving bank directly to understand any specific requirements or restrictions on the account.

Next Steps

If your payment is returned:

  1. Verify all account information is correct (routing number, account number, account holder name)

  2. Confirm with the recipient that the account is active and can receive the type of payment you're sending

  3. Reach out to Bridge Help Desk for support