diff --git a/lib/swap/PaymentHandler.ts b/lib/swap/PaymentHandler.ts
index 00b3194e..a56919af 100644
--- a/lib/swap/PaymentHandler.ts
+++ b/lib/swap/PaymentHandler.ts
@@ -249,9 +249,8 @@ class PaymentHandler {
           });
         } else if (payment.status === Payment.PaymentStatus.IN_FLIGHT) {
           this.logger.info(`Invoice of Swap ${swap.id} is still pending`);
+          return undefined;
         }
-
-        return undefined;
       } catch (e) {
         /* empty */
       }
@@ -269,6 +268,8 @@ class PaymentHandler {
     }
 
     if (
+      errorMessage === PaymentHandler.errCltvTooSmall ||
+      LightningNursery.errIsInvoicePaid(error) ||
       LightningNursery.errIsPaymentInTransition(error) ||
       LightningNursery.errIsCltvLimitExceeded(error)
     ) {
diff --git a/test/unit/swap/PaymentHandler.spec.ts b/test/unit/swap/PaymentHandler.spec.ts
index f4723116..adfc6b5f 100644
--- a/test/unit/swap/PaymentHandler.spec.ts
+++ b/test/unit/swap/PaymentHandler.spec.ts
@@ -80,7 +80,8 @@ describe('PaymentHandler', () => {
     preimageHash:
       '8bc944ac6563a0dc50c2666ffc1f6cc6295d5f093859f869c8d065fcb965443a',
     status: SwapUpdateEvent.InvoicePending,
-  } as Swap;
+    update: jest.fn().mockImplementation(async () => swap),
+  } as any as Swap;
 
   const handler = new PaymentHandler(
     Logger.disabledLogger,
@@ -118,7 +119,6 @@ describe('PaymentHandler', () => {
     ${PaymentHandler['errCltvTooSmall']}
     ${{ details: 'invoice is already paid' }}
     ${{ details: 'cltv limit 123 should be greater than 232' }}
-    ${{ details: 'invoice expired' }}
   `('should check payment for pay error "$error"', async ({ error }) => {
     cltvLimit = 100;
     sendPaymentError = error;
@@ -138,6 +138,27 @@ describe('PaymentHandler', () => {
     );
   });
 
+  test('should abandon swap when invoice expired', async () => {
+    cltvLimit = 100;
+    sendPaymentError = { details: 'invoice expired' };
+    trackPaymentResponse = {
+      status: Payment.PaymentStatus.FAILED,
+    };
+
+    expect(mockedEmit).toHaveBeenCalledTimes(0);
+    expect(btcCurrency.lndClient!.resetMissionControl).toHaveBeenCalledTimes(0);
+    expect(btcCurrency.lndClient!.trackPayment).toHaveBeenCalledTimes(0);
+
+    await expect(handler.payInvoice(swap, null, undefined)).resolves.toEqual(
+      undefined,
+    );
+    expect(swap.update).toHaveBeenCalledTimes(1);
+    expect(swap.update).toHaveBeenCalledWith({
+      failureReason: 'invoice could not be paid',
+      status: SwapUpdateEvent.InvoiceFailedToPay,
+    });
+  });
+
   test('should reset LND mission control only on interval', async () => {
     cltvLimit = 100;
     sendPaymentError = 'their node is offline';