Common mistakes

1 min read · Chapter 9 of 10

What usually goes wrong

Symptom	Likely cause	Reversal path	Who absorbs it
Payout arrives short	SHA or BEN deductions; the receiving bank's FX	Send OUR, or local currency on a local rail	The worker, unless the customer grosses up
Payout arrives late	Cut-offs, holidays, the receiving bank's queue, batch rails	Prefund local currency; check both calendars	The worker; the customer's goodwill
Payout returned	Bad or closed account, unstructured address, purpose code	Pre-validate; capture structured data	The customer: fees and reconversion loss
Paid to the wrong valid account	A typo, or a fraudster's change of details	Ask the recipient; name checks where they exist	The customer; the provider only if it skipped VoP
Payout frozen	Sanctions false positive; approved SPEI delay; Pix block	Clean data; documents ready	The worker (time); the provider (operations)
FX loss on a quote	Long quote windows; late funding	Short expiries; forwards for payroll	The provider while the quote is valid
Prefunded money stuck	A local partner fails or is designated	Several partners per corridor; daily sweeps	The provider; customers if not safeguarded
Corridor disappears	A correspondent exits; FedGlobal ACH ends	Multi-rail routing	Customers who need a new route
Client funds payroll late	Cash or a dispute	The EOR fronts it; late fees, deposits	The EOR, or the worker
Statutory payment missed	Aguinaldo (Dec 20), Brazil's 13th (Nov 30, Dec 20), 13th month (Dec 24)	Pay with fines	The EOR, recharged if the client funded late
Contractor reclassified	Control and integration like an employee's	Settle; move to an EOR	The client; a contractor of record up to its cap
1099 and backup withholding notices	W-8BEN missing or expired	Collect it; corrected forms	The payer

Payout arrives short

Likely cause: SHA or BEN deductions; the receiving bank's FX
Reversal path: Send OUR, or local currency on a local rail
Who absorbs it: The worker, unless the customer grosses up

Payout arrives late

Likely cause: Cut-offs, holidays, the receiving bank's queue, batch rails
Reversal path: Prefund local currency; check both calendars
Who absorbs it: The worker; the customer's goodwill

Payout returned

Likely cause: Bad or closed account, unstructured address, purpose code
Reversal path: Pre-validate; capture structured data
Who absorbs it: The customer: fees and reconversion loss

Paid to the wrong valid account

Likely cause: A typo, or a fraudster's change of details
Reversal path: Ask the recipient; name checks where they exist
Who absorbs it: The customer; the provider only if it skipped VoP

Payout frozen

Likely cause: Sanctions false positive; approved SPEI delay; Pix block
Reversal path: Clean data; documents ready
Who absorbs it: The worker (time); the provider (operations)

FX loss on a quote

Likely cause: Long quote windows; late funding
Reversal path: Short expiries; forwards for payroll
Who absorbs it: The provider while the quote is valid

Prefunded money stuck

Likely cause: A local partner fails or is designated
Reversal path: Several partners per corridor; daily sweeps
Who absorbs it: The provider; customers if not safeguarded

Corridor disappears

Likely cause: A correspondent exits; FedGlobal ACH ends
Reversal path: Multi-rail routing
Who absorbs it: Customers who need a new route

Client funds payroll late

Likely cause: Cash or a dispute
Reversal path: The EOR fronts it; late fees, deposits
Who absorbs it: The EOR, or the worker

Statutory payment missed

Likely cause: Aguinaldo (Dec 20), Brazil's 13th (Nov 30, Dec 20), 13th month (Dec 24)
Reversal path: Pay with fines
Who absorbs it: The EOR, recharged if the client funded late

Contractor reclassified

Likely cause: Control and integration like an employee's
Reversal path: Settle; move to an EOR
Who absorbs it: The client; a contractor of record up to its cap

1099 and backup withholding notices

Likely cause: W-8BEN missing or expired
Reversal path: Collect it; corrected forms
Who absorbs it: The payer

Ranking these by volume or cost needs an operator's data; I found none public.