Can banks decline a refund?

I paid for a deposit of a holiday £600 and I cancelled and the hotel team issued a refund, sent confirmation and then on my Monzo it says +600 declined.

I spoke to them and they said there’s nothing they can do because they thought it’s fraudent bur it’s a legit hotel and as far as the hotels concerned they have refunded me.

I’m just worried because that’s quite a lot of money to loose and the bank is being totally unhelpful.

And also point out nicely to the hotel that the money has NOT been refunded, though the fault us not theirs . Your money is still sitting in their bank account, which they will be able to see very good easily.

Presumably you paid with Monzo, so Monzo should have been aware that it was a simple £600 out and £600 back.

Yes I’ve told the hotel that, but before it’s Monzo that rejected the refund would the money have still left the hotels account? I’m just worried the hotel won’t believe me and think I’m trying to get extra but surely if Monzo declined then the money would still be with the hotel?

It might take a day or two, I suppose. What's the timeline?

A day or two to go back to the hotels account? They refunded this morning but it got rejected by my bank

Yes, but it might take time to get back to the hotel's account.

Thank you, apparently the hotel said that their payment provider confirmed it wasn’t received by me but it hasn’t reached their end yet. They said that they suspect Monzo will ‘ hold’ the payment but Monzo I can only get hold of a chat bot so I’m just hoping that if the refund didn’t go back to me, it will go back to the hotel and they can refund via another way!

And also point out nicely to the hotel that the money has NOT been refunded, though the fault us not theirs . Your money is still sitting in their bank account, which they will be able to see very good easily.

Presumably you paid with Monzo, so Monzo should have been aware that it was a simple £600 out and £600 back.