Payment Returned or Failed

Occasionally a payment leaves Lano correctly but is returned by the receiving bank. Here's what that means, why it happens, and exactly what we need to re-issue it - usually within one business day of your confirmation.

The receiving bank sends the funds back with a return reason. The money is not lost - returned funds are automatically credited back to the originating account balance, and we hold them there until the corrected details are confirmed. We'll contact you with the return reason as soon as we see it.

• Account closed or not found - the account was closed or the number is no longer valid.

• Details mismatch - the account number, IBAN, or routing information doesn't match an existing account, often after a bank switch or a typo.

• Name mismatch - the account-holder name we hold doesn't match the name at the receiving bank. Many banks now verify the payee name and reject on mismatch. The account must belong to the registered employee or contractor - payments to a third party's account can't proceed without explicit verification, for everyone's protection.

• Authority payment timing (tax and social-security payments) - some authorities only accept payment inside a set window and return funds that arrive too early or with the wrong reference. Where an authority returns a payment, they are also the definitive source for the correct account and reference, so we may ask you to confirm those details with them directly - for example, HMRC in the UK.

1. Account holder name, exactly as registered at the bank

2. IBAN or account number (re-typed from a bank statement or the banking app - not from memory)

3. Bank name

4. For international payments: BIC/SWIFT and any country-specific routing code

5. If the return involved a reference number (authority payments): the correct reference, confirmed with the authority
   
   

Once you confirm, we re-issue within one business day and send you the new payment reference. If you'd like proof of the original attempt, we can provide the payment confirmation (proof of payment) for your records.

• Update bank details in the platform before the payroll cut-off rather than by email mid-cycle.

• After changing banks, double-check the account holder name matches your registered name.

• Contractors: make sure the bank account on your profile is your own and matches your account name - invoices paid to mismatched accounts are the single most common contractor payment failure.