A supplier sent a refund to a business bank account you closed

Ask the supplier for the refund date, amount, currency, destination account suffix and payment reference. Distinguish a credit note or promised refund from a released payment. The supplier's accounting system may show a refund approved even when its payment provider has not sent the funds.

Retrieve the old account's closure confirmation and final statement. Contact the former bank through a verified channel and ask what happened to this particular incoming payment. It may have been rejected, returned or handled under another documented process. The account agreement and actual bank response matter; do not assume every bank routes a late refund in the same way.

Give the supplier the bank's response and ask its payment team to trace the original instruction where necessary. Record case numbers on both sides and identify which party is waiting for evidence. A supplier may need confirmation that the original payment returned before its controls permit a replacement.

Keep the refund receivable or other appropriate ledger balance open until supported settlement or another reviewed resolution. A bank rejection notice is evidence of an unsuccessful route, not evidence that the company received cash elsewhere. If a replacement is promised, record that promise separately from an actual bank receipt.

If the former account was closed by the bank rather than by the company, retrieve its notice and terms as well. OCC guidance notes that account-closure circumstances and policies vary. Ask the bank for the process applicable to the specific account instead of applying an unrelated consumer remedy or timeline.

Provide the supplier with current business banking details through the established vendor process. Expect the supplier to verify the change independently. Confirm the legal account holder and currency, and keep evidence of its acknowledgment. Avoid sending sensitive account information to a contact supplied only in an unexpected refund message.

Agree who will release the replacement and whether the original payment must first be confirmed returned. Record the original and replacement references together. If the former bank later forwards the first amount as well, the finance team must recognize the duplicate and resolve it with the supplier.

For a refund related to several invoices, retain the supplier's allocation. A single bank receipt should clear the correct credits or receivables, not be posted as unrelated income because the original expense occurred in an earlier period. Ask the accountant to review the treatment where the timing or underlying transaction is complex.

Match the received funds to the approved refund and investigate differences such as bank charges or currency conversion. Update the exception log with the confirmed outcome and preserve the trace evidence. Close the old-account item only when the company can explain the final disposition of the original payment.

Find why the supplier used the closed account. The obsolete details may remain in its vendor master, a refund portal, an old form or a payment-service profile. Correct that source and confirm the change; sending new details in a single email may not update the system used for future refunds.

The FDIC's bank-switching guidance emphasizes moving recurring activity and monitoring the transition. Add expected refunds and credits to the company's closure checklist so the next account move includes money due back to the business, not only customer receipts and scheduled payments.