When making a payment through ZendBusiness, you might encounter two statuses that indicate an issue: Action Failed and Returned.
While both suggest the payment was unsuccessful, they happen at different stages in the transaction process and for different reasons.
Understanding these statuses will help you resolve issues quickly and get your payments back on track.
What Does “Action Failed” Mean?
A payment gets an Action Failed status when it could not be processed due to missing information, incorrect details, or compliance requirements that were not met in time.
The key thing to note is that in this case, the transaction never actually went through it was stopped before reaching the recipient’s bank.
This can happen for several reasons. If a payment was previously flagged as needing corrections such as missing recipient details or compliance documents but no updates were made, it will eventually fail.
Incorrect beneficiary details, like errors in account numbers or SWIFT codes, can also prevent a payment from being processed.
In some cases, payments fail due to bank restrictions, unverified compliance documents, or because the transaction exceeded allowable limits.
When a payment is marked as Action Failed, it means the funds never left your account, and the transaction is closed. To proceed, you’ll need to fix the issue and initiate a new payment.
What Happens Next When Action Failed Occurs?
When a payment status changes to Action Failed, it means the transaction could not be processed, and no further attempts will be made to complete it. Here’s what happens next:
1. The Transaction Is Canceled
Since the required corrections were not provided in time or the payment could not be processed due to compliance or banking restrictions, the transaction is automatically canceled in our system. This means:
The payment request is closed.
The transaction will not be resubmitted unless you manually create a new one.
No funds will be sent to the intended recipient.
2. Funds Are Returned to Your ZendBusiness Account
Once the payment fails, the money is returned to your ZendBusiness balance or original funding source. Here’s how the refund process works:
Processing Time – Refunds usually take 2 to 5 business days, depending on your bank and the payment method used.
Where the Money Goes – If the payment was funded from your ZendBusiness wallet, the funds will be credited back there. If you used a linked bank account or card, the refund will be returned to that source.
Currency Considerations – If the payment involved currency conversion, you may receive the refund in the original currency you used, subject to exchange rate fluctuations.
3. A Notification Is Sent to You
You will receive a dashboard notification and possibly an email alert explaining why the payment failed. This notification will include:
The reason for failure (e.g., missing details, compliance issues, or bank rejection).
Confirmation on whether the funds have been refunded and the estimated time for completion.
Any recommended actions to prevent similar failures in the future.
How Does Action Failed Connect to Returned Payments?
An Action Failed payment could sometimes have been avoided.
If, for example, you sent a payment with incorrect details but it wasn’t flagged immediately, the transaction might go through only for the receiving bank to reject it later.
That’s when it turns into a Returned payment.
What Does “Returned” Mean?
A Returned payment means the transaction was initially processed and sent, but the recipient’s bank or an intermediary bank could not complete it, so the money was sent back to your account.
Unlike Action Failed, where the payment never left, a Returned payment reaches the banking system but is rejected along the way.
This often happens when the recipient’s account is closed or invalid, causing the bank to send the money back. In some cases, an intermediary bank one that helps process international transactions may block the payment due to missing or incorrect information.
Compliance regulations can also cause payments to be returned, especially if there are restrictions on the recipient’s country or bank.
Once a payment is marked as Returned, the money is automatically refunded to your ZendBusiness account or original payment method. Refunds typically take 2 to 5 business days, and you’ll receive a notification explaining why the payment was returned.
How to Avoid Payment Failures and Returns
To reduce the chances of encountering either Action Failed or Returned payments:
Double-check recipient details before submitting a payment.
✅ If ZendBusiness flags your payment with an Action Required status, respond quickly to correct any issues.
✅ Ensure your compliance documents are up to date to prevent rejections.
✅ Verify that the recipient’s bank can accept the payment to avoid unnecessary returns.
By taking the right precautions, you can reduce the chances of encountering Action Failed or Returned payments.
Ensuring that recipient details are accurate, responding promptly to any requests for additional information, and keeping compliance documents updated will help prevent payment failures.
Additionally, confirming that the recipient’s bank can process the transaction reduces the risk of funds being sent back.
A little extra attention before making a payment can save you time, avoid unnecessary delays, and ensure your transactions go through without issues.
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