SEPA Transfer Returned

A SEPA transfer being returned is often the sign of a fixable problem. In this guide we explain why the transfer may have been returned, what to watch out for in the return process, and what to do before sending again.

Reasons for a return

• Wrong / non-existent IBAN: If the IBAN is incorrect, the transfer cannot reach its destination and is returned.
• Closed or blocked account: If the recipient's account is closed, the amount comes back.
• Name–IBAN mismatch: A payee verification (VoP) mismatch can lead to a return.
• Bank reject code: The recipient bank can reject the transaction for various technical/rule reasons.
• Compliance: An AML/compliance check can stop the transaction and cause a return.
• Limit exceeded: If the amount is above the relevant limits, a return is possible.

Watch out in the return process: double currency conversion

On a transaction involving a non-euro currency, the money can be converted once on sending (local currency → euro) and once more during the return (euro → local currency). These two conversions mean two separate exchange-rate margins; as a result, the returned amount can be less than what you sent. In addition, some banks may charge a separate fee for the return. That is why a return should be assessed not with the expectation "the money comes back in full" but with the possibility of a loss.

Before sending again

1. Learn the return reason. Ask the sending bank for the return/reject code.
2. Correct the details. Validate the IBAN and recipient name; use the IBAN validation tool.
3. Confirm the recipient's account. Make sure the account is open and correct.
4. If there is a compliance reason, consult the bank. Additional information may be needed for compliance-related returns.

If a reversal is needed due to a misdirected transfer, see how to reverse a wrong SEPA transfer; for a name mismatch, see the payee name–IBAN mismatch page.

Summary

A SEPA transfer is usually returned due to a wrong IBAN, a closed account, a name mismatch, a reject code, compliance or a limit. The principal amount usually comes back; but on a non-euro transaction, the returned amount can decrease due to double currency conversion and a possible return fee. Before sending again, learn the return reason and correct the details.