What happened
Your payout required a Travel Rule message to the receiving institution, but the institution rejected it before the on-chain broadcast. No funds were moved. The payout is in a terminal failed state withfailureCode: travel_rule_rejected.
Common causes
- Unrecognized beneficiary — the receiving institution could not match the destination address or account to a known entity
- Policy mismatch — the originating or beneficiary information did not meet the receiving institution’s compliance requirements
- Unsupported corridor — the receiving institution does not accept Travel Rule messages for the requested corridor
Recovery
1. Ask for the rejection detailfailureMessage is Conduit’s fixed text for travel_rule_rejected. It does not carry the institution’s reason. Contact your account manager for the rejection detail.
2. Investigate the destination
Verify the destination address is associated with a regulated custodian that participates in Travel Rule messaging. Unhosted wallets or unsupported custodians cannot be matched during the Travel Rule exchange.
3. Submit a new payout to a different destination
Once the issue is resolved, submit a new payout with a corrected or alternative destination:
Prevention
- Verify destination eligibility — confirm the destination address belongs to a custodian that supports Travel Rule before submitting high-value transfers
- Handle
transaction.failedwith this code — usefailureCode === 'travel_rule_rejected'to branch on this specific terminal state
Related webhooks
Thetransaction.failed event fires when the payout terminates:
failureMessage is always the catalog text for travel_rule_rejected, never the institution’s own reason.
Related endpoints
- GET /v2/payouts/:id — read payout state and failure details
- POST /v2/payouts — submit a new payout
- POST /v2/sandbox/payouts/:id/simulate/counterparty-webhook — simulate a counterparty rejection in sandbox