diff --git a/CHANGELOG b/CHANGELOG
index 79cef2fc3bd..aee70445e52 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -100,6 +100,7 @@
 * Nuvei: Fix send savePM in false by default [javierpedrozaing] #5353
 * Decidir and DecicirPlus: Add the wallet_id field [yunnydang] #5354
 * Worldpay: Update where to pass shopperIPAddress [almalee24] #5348
+* Braintree: Account for BraintreeError [almalee24] #5346
 
 == Version 1.137.0 (August 2, 2024)
 * Unlock dependency on `rexml` to allow fixing a CVE (#5181).
diff --git a/lib/active_merchant/billing/gateways/braintree_blue.rb b/lib/active_merchant/billing/gateways/braintree_blue.rb
index dcd5906a4b4..0d74be854f1 100644
--- a/lib/active_merchant/billing/gateways/braintree_blue.rb
+++ b/lib/active_merchant/billing/gateways/braintree_blue.rb
@@ -1061,26 +1061,33 @@ def add_bank_account_to_customer(payment_method, options)
           }
         )
 
-        verified = result.success? && result.payment_method&.verified
-        message = message_from_result(result)
-        message = not_verified_reason(result.payment_method) unless verified
-
+        success = bank_account_verified?(result)
+        resp_body = if result.respond_to?(:payment_method)
+                      {
+                        customer_vault_id: options[:customer],
+                        bank_account_token: result.payment_method&.token,
+                        verified: success
+                      }
+                    end
         Response.new(
-          verified,
-          message,
-          {
-            customer_vault_id: options[:customer],
-            bank_account_token: result.payment_method&.token,
-            verified:
-          },
-          authorization: result.payment_method&.token
+          success,
+          message_from_bank_account_result(success, result),
+          resp_body || {},
+          authorization: (result.payment_method&.token if result.respond_to?(:payment_method))
         )
       end
 
-      def not_verified_reason(bank_account)
-        return unless bank_account.verifications.present?
+      def bank_account_verified?(result)
+        return false unless result.respond_to?(:payment_method)
+
+        result.success? && result.payment_method&.verified
+      end
+
+      def message_from_bank_account_result(success, response)
+        return message_from_result(response) if !response.respond_to?(:payment_method) || success
+        return unless response.payment_method.verifications.present?
 
-        verification = bank_account.verifications.first
+        verification = response.payment_method.verifications.first
         "verification_status: [#{verification.status}], processor_response: [#{verification.processor_response_code}-#{verification.processor_response_text}]"
       end
 
diff --git a/test/unit/gateways/braintree_blue_test.rb b/test/unit/gateways/braintree_blue_test.rb
index 26a13670bee..1d74fad7431 100644
--- a/test/unit/gateways/braintree_blue_test.rb
+++ b/test/unit/gateways/braintree_blue_test.rb
@@ -1173,6 +1173,38 @@ def test_unsuccessful_transaction_returns_id_when_available
     assert response.authorization.present?
   end
 
+  def test_unsuccessful_adding_bank_account_to_customer
+    bank_account = check({ account_number: '1000000002', routing_number: '011000015' })
+    options = {
+      billing_address: {
+        address1: '1670',
+        address2: '1670 NW 82ND AVE',
+        city: 'Miami',
+        state: 'FL',
+        zip: '32191'
+      },
+      ach_mandate: 'ACH Mandate',
+      merchant_account_id: 'merchant_account_id'
+    }
+    customer = stub(
+      credit_cards: [stub_everything],
+      email: 'email',
+      phone: '321-654-0987',
+      first_name: 'John',
+      last_name: 'Smith'
+    )
+    customer.stubs(:id).returns('123')
+
+    Braintree::CustomerGateway.any_instance.expects(:create).returns(Braintree::SuccessfulResult.new(customer:))
+    Braintree::ClientTokenGateway.any_instance.expects(:generate).returns('IntcImNsaWVudF90b2tlblwiOlwiMTIzNFwifSI=')
+    ActiveMerchant::Billing::TokenNonce.any_instance.expects(:ssl_request).returns(JSON.generate(token_bank_response))
+    Braintree::PaymentMethodGateway.any_instance.expects(:create).returns(braintree_error_result(message: 'US bank account is not accepted by merchant account.'))
+
+    assert response = @gateway.store(bank_account, options)
+    refute response.success?
+    assert_equal response.message, 'US bank account is not accepted by merchant account.'
+  end
+
   def test_unsuccessful_transaction_returns_message_when_available
     Braintree::TransactionGateway.any_instance.
       expects(:sale).
@@ -1658,6 +1690,24 @@ def standard_purchase_params
     }
   end
 
+  def token_bank_response
+    {
+      'data' => {
+        'tokenizeUsBankAccount' => {
+          'paymentMethod' => {
+            'id' => 'tokenusbankacct_bc_zrg45z_7wz95v_nscrks_q4zpjs_5m7',
+            'details' => {
+              'last4' => '0125'
+            }
+          }
+        }
+      },
+      'extensions' => {
+        'requestId' => '769b26d5-27e4-4602-b51d-face8b6ffdd5'
+      }
+    }
+  end
+
   def success_create_token_nonce
     <<-RESPONSE
       [Braintree] <payment-method>