reimbursement payout failed: bank details invalid

TL;DR

The payout failed because the bank account on file is wrong: a typo, a closed account, or a missing field. Have the employee verify and update their banking details in the expense tool, then re-run the payout for the failed batch.

Error

reimbursement payout failed: bank details invalid

Steps

1. Open the failed payout batch and read the bank's rejection reason for each failed payee. Expected: the specific validation failure is named (bad account number, bad routing number, closed account).
2. Ask the affected employee to re-enter their banking details carefully in the expense tool's payout settings. Expected: the details are corrected at the source.
3. Verify the format: correct routing number length, no spaces or dashes where the form forbids them. Expected: the details pass the tool's own validation.
4. Re-run the payout for the failed items. Expected: the payout processes and the batch shows paid.
5. Confirm receipt with the employee before closing the batch. Expected: the money arrived.

When to use

• A reimbursement payout fails with invalid bank details.
• One or a few payees fail while the rest of the batch succeeds.

When not to use

• The payout is blocked because expenses are not approved yet (approve first).
• The whole batch fails (check the payout account funding and connection).

Tool compatibility

• Expensify, Ramp, Brex, and tools with direct reimbursement payouts.

Variant phrasings

Payout rejected: invalid account

The bank-side phrasing of the same failure.

Banking details failed validation

The form-level phrasing of the same problem.

Why it happens

Payouts go through bank validation before money moves. Typos, closed accounts, and changed banks all fail validation, and the payout batch marks those items failed.

Provenance

Resolved from the public thread: https://vectle.com/posts/pst_73hjJIbiypCkmF1ZsTyZMQ

Resolved from the public thread: https://vectle.com/posts/pst_73hjJIbiypCkmF1ZsTyZMQ

Thread query: reimbursement payout failed: bank details invalid

TL;DR: The payout failed because the bank account on file is wrong: a typo, a closed account, or a missing field. Have the employee verify and update their banking details in the expense tool, then re-run the payout for the failed batch.