A charter retry payment is a second attempt by your bank to collect a payment you authorized but that failed the first time

When you set up a payment — whether through bill pay, a recurring subscription, or a transfer — your bank sends an electronic request to the other bank or payment processor. Sometimes that request fails. The receiving bank might be temporarily offline, the account number might have a typo, or the receiving institution might reject it for a technical reason unrelated to your account balance or creditworthiness.

Instead of giving up after one failed attempt, most banks automatically retry the payment. A charter retry is that second attempt, usually sent within one to three business days of the first failure. The term comes from the banking rules (called the Automated Clearing House, or ACH, rules) that govern how electronic payments move between banks.

The key point: a charter retry is not a new charge or a penalty. It is your bank trying again to send a payment you already authorized. If it succeeds on the second attempt, the money moves as originally intended. If it fails again, your bank will usually notify you and may try once more before stopping.

Key Takeaways

  • A charter retry is an automatic second attempt to process a payment that failed on the first try, not a separate charge.
  • Your bank retries the payment because the first attempt was rejected by the receiving bank or payment processor, not because you lack funds.
  • Retries usually happen within one to three business days and stop after two or three attempts to avoid overdraft fees.
  • You do not need to do anything when a charter retry occurs — your bank handles it automatically if you authorized the original payment.
  • If a charter retry succeeds, the payment posts once; if it fails repeatedly, your bank will contact you to troubleshoot the problem.

Why your bank retries instead of stopping after one failure

A failed payment does not always mean something is wrong with your account. The receiving bank's systems go down for maintenance, payment processors experience temporary glitches, or routing information gets misread. Retrying gives the receiving institution a second chance to accept the payment without you having to resubmit it manually.

This protects you in two ways. First, you do not have to notice the failure and take action yourself — the retry happens in the background. Second, it reduces the number of times your bank sends the same request, which could otherwise trigger multiple failed-payment fees if you had to resubmit manually each time.

The banking system assumes that most failures are temporary technical problems, not permanent rejections. A charter retry reflects that assumption.

How many times your bank will retry and when it stops

Banks follow ACH rules that limit how many times they can retry a failed payment. Most banks retry once or twice — meaning a total of two or three attempts (the original plus one or two retries). After that, they stop and notify you that the payment could not go through.

The timing matters. The first retry usually happens within one to three business days of the initial failure. If that fails, a second retry might happen another one to three business days later. Your bank will not keep retrying indefinitely because repeated failed attempts can trigger overdraft fees on your account if you do not have enough funds to cover multiple debits.

Once your bank stops retrying, you will typically receive a notice by mail, email, or through your online banking portal explaining that the payment failed and asking you to contact the receiving institution or resubmit the payment yourself.

When a charter retry might fail and what happens next

A charter retry can fail for the same reason the original payment failed — the receiving bank is still offline, the account information is still incorrect, or the receiving institution continues to reject it. It can also fail for new reasons: the receiving bank might have closed the account, or the account holder might have requested that payments from your bank be blocked.

If the retry fails, your bank will stop attempting and contact you. At that point, you have a few options. You can call the receiving institution directly to confirm the account number and routing information are correct. You can ask the receiving institution whether they are blocking payments from your bank. Or you can ask your bank whether they can send the payment through a different method, such as a wire transfer or check.

Do not assume the payment is lost. Your bank has a record that it tried to send the money on your behalf. Once you and the receiving institution resolve the underlying problem, you can resubmit the payment or ask your bank to retry.

The difference between a charter retry and an overdraft fee

A charter retry itself does not cost you money. Your bank does not charge you for retrying a payment you authorized. However, if your account does not have enough funds and the retry attempt causes your balance to go negative, your bank may charge an overdraft fee.

For example: you authorize a $500 payment, your account has $400, the payment fails, and your bank retries. If the retry succeeds and your account goes to negative $100, your bank may charge an overdraft fee (usually $25 to $35, depending on your bank). The fee is not for the retry itself — it is for allowing your account to go below zero.

To avoid this, check your account balance before authorizing a payment. If you know a payment might fail and be retried, make sure you have enough to cover it twice, just in case.

Charter retry versus recurring payment failures

A charter retry applies to one-time payments or the first attempt of a recurring payment. If you have a subscription or automatic bill payment set to occur every month, and it fails, your bank will retry that specific month's payment. The retry does not affect future months.

If the retry fails and you do not fix the underlying problem, the next month's payment will also fail and be retried. Each month is treated as a separate payment with its own retry cycle. This is why it is important to contact the receiving institution or your bank as soon as you learn a payment failed — fixing the problem now prevents the same failure from happening next month.

What to do if you see a charter retry on your statement

If you see a charter retry listed on your bank statement, it means a payment you authorized failed the first time and your bank sent it again. Check whether the retry succeeded or failed by looking at your account balance and recent transactions. If the payment now shows as posted, the retry worked and you are done.

If the statement shows the retry also failed, contact your bank and ask why. Common reasons include an incorrect account number at the receiving institution, a closed account, or a block placed by the receiving bank. Your bank can tell you which reason applies and what to do next. You may need to contact the receiving institution directly to fix the account information or remove any block.

Do not ignore a failed charter retry if it involves an important payment like rent, a mortgage, or a utility bill. The longer you wait, the more likely you are to face late fees or service interruption.

Frequently Asked Questions

Does a charter retry cost me money?

The retry itself is free. Your bank does not charge you for retrying a payment you authorized. However, if the retry causes your account to go negative, your bank may charge an overdraft fee. To avoid this, make sure your account has enough funds to cover the payment amount.

Can I stop a charter retry once it has started?

If your bank has already sent the first attempt and it failed, you cannot stop the retry — it happens automatically. However, if you realize the payment should not have been sent at all, contact your bank when ready and ask them to cancel any pending retries. The sooner you call, the more likely they can stop it before the retry is sent.

How do I know if a charter retry succeeded or failed?

Check your bank statement and account balance. If the payment now shows as posted and your balance reflects the deduction, the retry succeeded. If you see a notation that the payment failed or if your balance has not changed, the retry failed. Your bank will also send you a notice if the retry fails.

What if the charter retry keeps failing?

After two or three attempts, your bank will stop retrying and contact you. At that point, call the receiving institution to confirm the account number and routing information are correct. Ask whether they are blocking payments from your bank or whether the account has been closed. Once you resolve the issue, you can resubmit the payment or ask your bank to retry.

Does a charter retry affect my credit score?

A failed payment attempt does not directly affect your credit score. However, if the payment is for a credit account (like a credit card or loan) and it remains unpaid after the retry fails, a late payment could be reported to credit bureaus. Pay the bill through another method as soon as possible to avoid credit damage.