diff --git a/packages/orchestration/src/examples/staking-combinations.flows.js b/packages/orchestration/src/examples/staking-combinations.flows.js
index 2961ee96dac..c7ab71afc32 100644
--- a/packages/orchestration/src/examples/staking-combinations.flows.js
+++ b/packages/orchestration/src/examples/staking-combinations.flows.js
@@ -76,9 +76,8 @@ export const depositAndDelegate = async (
   try {
     await contractState.localAccount.transfer(give.Stake, address);
   } catch (cause) {
-    // TODO, put funds back on user seat and exit
-    // https://github.com/Agoric/agoric-sdk/issues/9925
-    throw makeError('ibc transfer failed', undefined, { cause });
+    await zoeTools.withdrawToSeat(contractState.localAccount, seat, give);
+    throw seat.fail(makeError('ibc transfer failed', undefined, { cause }));
   }
   seat.exit();
   await account.delegate(validator, give.Stake);
diff --git a/packages/orchestration/test/examples/snapshots/staking-combinations.test.ts.md b/packages/orchestration/test/examples/snapshots/staking-combinations.test.ts.md
index 8fa76401b61..5b0b7e27271 100644
--- a/packages/orchestration/test/examples/snapshots/staking-combinations.test.ts.md
+++ b/packages/orchestration/test/examples/snapshots/staking-combinations.test.ts.md
@@ -51,6 +51,8 @@ Generated by [AVA](https://avajs.dev).
                 zoeTools: {
                   localTransfer_kindHandle: 'Alleged: kind',
                   localTransfer_singleton: 'Alleged: localTransfer',
+                  withdrawToSeat_kindHandle: 'Alleged: kind',
+                  withdrawToSeat_singleton: 'Alleged: withdrawToSeat',
                 },
               },
             },
@@ -76,6 +78,8 @@ Generated by [AVA](https://avajs.dev).
                 zoeTools: {
                   localTransfer_kindHandle: 'Alleged: kind',
                   localTransfer_singleton: 'Alleged: localTransfer',
+                  withdrawToSeat_kindHandle: 'Alleged: kind',
+                  withdrawToSeat_singleton: 'Alleged: withdrawToSeat',
                 },
               },
             },
@@ -101,6 +105,8 @@ Generated by [AVA](https://avajs.dev).
                 zoeTools: {
                   localTransfer_kindHandle: 'Alleged: kind',
                   localTransfer_singleton: 'Alleged: localTransfer',
+                  withdrawToSeat_kindHandle: 'Alleged: kind',
+                  withdrawToSeat_singleton: 'Alleged: withdrawToSeat',
                 },
               },
             },
diff --git a/packages/orchestration/test/examples/snapshots/staking-combinations.test.ts.snap b/packages/orchestration/test/examples/snapshots/staking-combinations.test.ts.snap
index 0419690848f..baa5d7049ab 100644
Binary files a/packages/orchestration/test/examples/snapshots/staking-combinations.test.ts.snap and b/packages/orchestration/test/examples/snapshots/staking-combinations.test.ts.snap differ
diff --git a/packages/orchestration/test/examples/staking-combinations.test.ts b/packages/orchestration/test/examples/staking-combinations.test.ts
index a7540dd8a0c..7a9c61ac010 100644
--- a/packages/orchestration/test/examples/staking-combinations.test.ts
+++ b/packages/orchestration/test/examples/staking-combinations.test.ts
@@ -12,6 +12,7 @@ import {
   MsgTransferResponse,
 } from '@agoric/cosmic-proto/ibc/applications/transfer/v1/tx.js';
 import { IBCMethod } from '@agoric/vats';
+import { SIMULATED_ERRORS } from '@agoric/vats/tools/fake-bridge.js';
 import { protoMsgMocks, UNBOND_PERIOD_SECONDS } from '../ibc-mocks.js';
 import { commonSetup } from '../supports.js';
 import {
@@ -205,4 +206,37 @@ test('start', async t => {
   // snapshot the resulting contract baggage
   const tree = inspectMapStore(contractBaggage);
   t.snapshot(tree, 'contract baggage after start');
+
+  {
+    t.log('payments from failed transfers are returned');
+    const bldAmt = bld.make(SIMULATED_ERRORS.TIMEOUT);
+
+    const seat = await E(zoe).offer(
+      await E(result.invitationMakers).DepositAndDelegate(),
+      {
+        give: { Stake: bldAmt },
+        exit: { waived: null },
+      },
+      {
+        Stake: await pourPayment(bldAmt),
+      },
+      {
+        validator: {
+          chainId: 'cosmoshub',
+          value: 'cosmosvaloper1test',
+          encoding: 'bech32',
+        },
+      },
+    );
+    await t.throwsAsync(vt.when(E(seat).getOfferResult()), {
+      message: 'ibc transfer failed',
+    });
+    await vt.when(E(seat).hasExited());
+    const payouts = await E(seat).getPayouts();
+    t.deepEqual(
+      await bld.issuer.getAmountOf(payouts.Stake),
+      bldAmt,
+      'Stake is returned',
+    );
+  }
 });