> ## Documentation Index
> Fetch the complete documentation index at: https://v2.docs.conduit.financial/llms.txt
> Use this file to discover all available pages before exploring further.

# RAIL_POLICY_REJECTED error

> The payment rail rejected the transaction per its own policy; no funds moved

## What happened

The payment rail rejected the transaction based on its own rules -- for example, an amount limit, a frequency cap, or a restriction on the recipient. No funds were moved. The transaction is in a terminal failed state with `failureCode: rail_policy_rejected`.

```json theme={null}
{
  "type": "RAIL_POLICY_REJECTED",
  "title": "Payment rail rejected the transaction",
  "status": 422,
  "detail": "The payment rail's policy rejected the transaction.",
  "resolution": "Adjust the amount, recipient, or wait period and submit a new transaction.",
  "docs": "/errors#rail-policy-rejected",
  "instance": "/v2/transactions/txn_abc123",
  "correlationId": "corr_xyz789",
  "timestamp": "2026-01-15T09:30:00.000Z"
}
```

## Common causes

* **Amount limit** -- the transaction amount exceeds the per-transaction or daily limit on the rail
* **Frequency cap** -- the recipient or sender has exceeded the number of transfers allowed in a given period
* **Recipient restriction** -- the recipient's institution does not accept transfers from this corridor or rail
* **Invalid account details** -- the routing number, IBAN, or account number does not pass the rail's validation rules

## Recovery

<Warning>
  This is a terminal state. No funds were moved. Investigate the rejection reason
  before resubmitting.
</Warning>

**1. Confirm the terminal state**

```bash theme={null}
curl -X GET https://api.conduit.financial/v2/transactions/txn_abc123 \
  -H "x-api-key: YOUR_API_KEY"
```

**2. Review the recipient details**

Verify that the routing number, account number, and recipient name are correct. For SEPA transfers, confirm the IBAN format and BIC.

**3. Check the amount**

Confirm the transaction amount falls within the rail's per-transaction limits. If the amount is near a known limit, split the transfer or ask the customer to try a smaller amount.

**4. Submit a new transaction after resolving the issue**

```bash theme={null}
curl -X POST https://api.conduit.financial/v2/payouts \
  -H "x-api-key: YOUR_API_KEY" \
  -H "Idempotency-Key: idem_NEW_KEY" \
  -H "Content-Type: application/json" \
  -d '{
    "customerId": "cus_abc123",
    "virtualAccountId": "vac_abc123",
    "assetAmount": {"code": "USD", "amount": "500.00"},
    "destination": {
      "recipient": {
        "rail": "us",
        "type": "individual",
        "firstName": "Jane",
        "lastName": "Doe",
        "accountNumber": "1234567890",
        "routingNumber": "021000021",
        "accountType": "checking"
      }
    }
  }'
```

## Prevention

* **Validate recipient details at collection time** -- use the requirements endpoint to confirm required fields and formats before accepting recipient information
* **Respect per-transfer limits** -- check your account's configured rail limits and enforce them in your UI before submitting
* **Handle `transaction.failed` with this code** -- branch on `failureCode === 'rail_policy_rejected'` to surface a "the recipient's bank rejected this transfer" message with a retry option after the user corrects details

## Related webhooks

The `transaction.failed` event fires when the rail rejects the transaction:

```json theme={null}
{
  "type": "transaction.failed",
  "data": {
    "transactionId": "txn_abc123",
    "failureCode": "rail_policy_rejected"
  }
}
```

## Related endpoints

* [GET /v2/transactions/:id](/api-reference/transactions/get-a-transaction-by-id) -- read transaction state
* [POST /v2/payouts](/api-reference/payouts/create-a-payout) -- submit a new payout
* [GET /v2/payouts/requirements](/api-reference/payouts/discover-payout-requirements) -- check recipient field requirements per rail