Business · Companies · 12 hrs ago
Failed payments cost banks millions and drive customers away
A survey of 150 financial institutions worldwide found that failed or delayed payments create significant costs for banks.
Three-quarters of those surveyed said these problems cost them up to $5 million a year in lost customer revenue.
About one in 10 cross-border payments fails on its first attempt, often because payment or account details are wrong.
In one example, a bank processing 10,000 cross-border payments a day would spend about $2.2 million a year manually handling cases that automation did not complete.
The impact reaches customers too: around one-third of the institutions said payment problems led them to lose 2% to 5% of their customers.
Europe reported the lowest rates of failed or delayed payments, while results were worse in regions including Africa and Latin America; the survey gave no separate figures for Switzerland.
Banks can check recipient and account details before payments are sent, and some institutions using validation tools said their automation improved.
The study also points to the ISO 20022 messaging standard as a way to send payment information in a more structured form.
Failed or delayed payments cost banks money, strain customer relationships and can lead customers to switch providers.
A study by LexisNexis Risk Solutions found that three-quarters of surveyed financial institutions lose up to $5 million in customer revenue each year because of failed payments.
About one in 10 cross-border payments fails on the first attempt, with incorrect payment details among the main causes.
Around one-third of surveyed institutions said payment failures cost them 2% to 5% of their customers.
Europe reported the lowest rates of failed or delayed payments among the regions compared in the study.
- Who
- Financial institutions surveyed by LexisNexis Risk Solutions. Banks and other institutions face costs and customer losses from failed payments.
- What
- Failed or delayed payments cause added costs and can drive customers away.
- When
- The study was published on Wednesday, October 14, 2026.
- Where
- The study covered financial institutions in several world regions.
- Why
- Incorrect payment details are a leading cause of failed payments. Different clearing systems, regulations, data standards and banking infrastructure also contribute.
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- Survey size
- 150 payments executives at financial institutions
- Annual revenue losses
- Three-quarters of institutions lose up to $5 million
- Failed on first attempt
- Around one in 10 cross-border payments
- Cost per failure
- 37% of institutions face costs above $20
- Europe
- 92% of institutions report fewer than 5% of payments fail or are delayed
What people are saying
Failed payments lead to financial losses, friction in customer relationships and operational rework
Many of these cases stem from clearly identifiable deficiencies in payment data