Can a bank keep a payment instead of returning it?

The wider picture

The key points from the guide this answer comes from:

1. Payments come back when a detail doesn't match: the payee's name, an IBAN or account number that's wrong or closed, or information the receiving bank needs.
2. A return costs fees, time and sometimes an exchange rate loss, so checking before you send is cheaper than fixing a return.
3. The payee's bank must return a SEPA credit transfer within three banking business days, and ACH payments to business accounts have a two-day return window.
4. Payee checks such as Verification of Payee and Confirmation of Payee catch name mismatches. Treat a no-match result as a reason to call the supplier.

More questions on this

• How long does a returned payment take to come back?
• Will I get the full amount back?
• What does a 'no match' payee check result mean?

The full guide

Payments get sent back when a detail doesn't match: the payee's name, an IBAN or account number that's wrong or closed, or information the receiving bank needs. Check names and numbers before you send, because a return costs fees and time.

Read Why international business payments get rejected or returned, with its sources.

General information, not legal, tax or financial advice. Rules and providers' terms change; check the sources in the guide and take advice on your own situation.