diff --git a/src/tempo/client/ChannelOps.test.ts b/src/tempo/client/ChannelOps.test.ts
index e93a7d89..63539d8f 100644
--- a/src/tempo/client/ChannelOps.test.ts
+++ b/src/tempo/client/ChannelOps.test.ts
@@ -1,6 +1,7 @@
 import { Hex } from 'ox'
 import { type Address, createClient } from 'viem'
 import { privateKeyToAccount } from 'viem/accounts'
+import { waitForTransactionReceipt } from 'viem/actions'
 import { Addresses } from 'viem/tempo'
 import { beforeAll, describe, expect, test } from 'vitest'
 import { deployEscrow, openChannel } from '~test/tempo/session.js'
@@ -11,7 +12,8 @@ import {
   chainId as chainIdDefaults,
   escrowContract as escrowContractDefaults,
 } from '../internal/defaults.js'
-import { verifyVoucher } from '../session/Voucher.js'
+import { settleOnChain } from '../session/Chain.js'
+import { signVoucher, verifyVoucher } from '../session/Voucher.js'
 import {
   createClosePayload,
   createOpenPayload,
@@ -291,4 +293,35 @@ describe('tryRecoverChannel', () => {
     const result = await tryRecoverChannel(client, escrow, fakeChannelId, chain.id)
     expect(result).toBeUndefined()
   })
+
+  test('returns undefined when available balance is below the requested amount', async () => {
+    const salt = Hex.random(32) as `0x${string}`
+    const deposit = 10_000_000n
+    const settled = 9_500_000n
+    const { channelId } = await openChannel({
+      escrow,
+      payer,
+      payee,
+      token: currency,
+      deposit,
+      salt,
+    })
+
+    const signature = await signVoucher(
+      client,
+      payer,
+      { channelId, cumulativeAmount: settled },
+      escrow,
+      chain.id,
+    )
+    const txHash = await settleOnChain(client, escrow, {
+      channelId,
+      cumulativeAmount: settled,
+      signature,
+    })
+    await waitForTransactionReceipt(client, { hash: txHash })
+
+    const result = await tryRecoverChannel(client, escrow, channelId, chain.id, 1_000_000n)
+    expect(result).toBeUndefined()
+  })
 })
diff --git a/src/tempo/client/ChannelOps.ts b/src/tempo/client/ChannelOps.ts
index 4879b8f6..7b74ccb2 100644
--- a/src/tempo/client/ChannelOps.ts
+++ b/src/tempo/client/ChannelOps.ts
@@ -207,18 +207,22 @@ export async function createOpenPayload(
  * amount (the safe starting point for new vouchers).
  *
  * Returns `undefined` if the channel doesn't exist, has zero deposit,
- * or is already finalized.
+ * is already finalized, or lacks enough available balance.
  */
 export async function tryRecoverChannel(
   client: viem_Client,
   escrowContract: Address,
   channelId: Hex.Hex,
   chainId: number,
+  minAvailable?: bigint,
 ): Promise<ChannelEntry | undefined> {
   try {
     const onChain = await getOnChainChannel(client, escrowContract, channelId)
 
     if (onChain.deposit > 0n && !onChain.finalized) {
+      if (minAvailable !== undefined && onChain.deposit - onChain.settled < minAvailable)
+        return undefined
+
       return {
         channelId,
         salt: '0x' as Hex.Hex,
diff --git a/src/tempo/client/Session.test.ts b/src/tempo/client/Session.test.ts
index d59e0dcb..ae4b2e86 100644
--- a/src/tempo/client/Session.test.ts
+++ b/src/tempo/client/Session.test.ts
@@ -1,5 +1,6 @@
 import { type Address, createClient, type Hex, http } from 'viem'
 import { privateKeyToAccount } from 'viem/accounts'
+import { waitForTransactionReceipt } from 'viem/actions'
 import { Addresses } from 'viem/tempo'
 import { beforeAll, describe, expect, test } from 'vitest'
 import { deployEscrow, openChannel } from '~test/tempo/session.js'
@@ -7,7 +8,9 @@ import { accounts, asset, chain, client, fundAccount } from '~test/tempo/viem.js
 import * as Challenge from '../../Challenge.js'
 import * as Credential from '../../Credential.js'
 import { chainId, escrowContract as escrowContractDefaults } from '../internal/defaults.js'
+import { settleOnChain } from '../session/Chain.js'
 import type { SessionCredentialPayload } from '../session/Types.js'
+import { signVoucher } from '../session/Voucher.js'
 import { session } from './Session.js'
 
 function deserializePayload(result: string) {
@@ -411,6 +414,53 @@ describe('session (on-chain)', () => {
         }),
       ).rejects.toThrow('cannot be reused')
     })
+
+    test('opens a new channel when suggestedChannelId lacks available balance', async () => {
+      const salt = nextSalt()
+      const deposit = 1_500_000n
+      const settled = 1_000_000n
+      const { channelId } = await openChannel({
+        escrow: escrowContract,
+        payer,
+        payee,
+        token: asset,
+        deposit,
+        salt,
+      })
+      const signature = await signVoucher(
+        client,
+        payer,
+        { channelId, cumulativeAmount: settled },
+        escrowContract,
+        chain.id,
+      )
+      const txHash = await settleOnChain(client, escrowContract, {
+        channelId,
+        cumulativeAmount: settled,
+        signature,
+      })
+      await waitForTransactionReceipt(client, { hash: txHash })
+
+      const method = session({
+        getClient: () => client,
+        account: payer,
+        deposit: '10',
+        escrowContract,
+      })
+      const challenge = makeLiveChallenge({
+        methodDetails: {
+          chainId: chain.id,
+          escrowContract,
+          channelId,
+        },
+      })
+
+      const result = await method.createCredential({ challenge, context: {} })
+
+      const cred = deserializePayload(result)
+      expect(cred.payload.action).toBe('open')
+      expect(cred.payload.channelId).not.toBe(channelId)
+    })
   })
 
   describe('cumulative tracking in auto mode', () => {
diff --git a/src/tempo/client/Session.ts b/src/tempo/client/Session.ts
index aaee3e1f..b58fda20 100644
--- a/src/tempo/client/Session.ts
+++ b/src/tempo/client/Session.ts
@@ -153,6 +153,7 @@ export function session(parameters: session.Parameters = {}) {
           escrowContract,
           suggestedChannelId,
           chainId,
+          amount,
         )
         if (recovered) {
           const contextCumulative = context?.cumulativeAmountRaw
@@ -168,7 +169,7 @@ export function session(parameters: session.Parameters = {}) {
           notifyUpdate(entry)
         } else if (context?.channelId) {
           throw new Error(
-            `Channel ${context.channelId} cannot be reused (closed or not found on-chain).`,
+            `Channel ${context.channelId} cannot be reused (closed, not found, or lacking available balance on-chain).`,
           )
         }
       }
diff --git a/src/tempo/client/SessionManager.ts b/src/tempo/client/SessionManager.ts
index c0e33427..a7f8bf27 100644
--- a/src/tempo/client/SessionManager.ts
+++ b/src/tempo/client/SessionManager.ts
@@ -50,8 +50,9 @@ export type PaymentResponse = Response & {
  *
  * When the server includes a `channelId` in the 402 challenge `methodDetails`,
  * the client will attempt to recover the channel by reading its on-chain state
- * via `getOnChainChannel()`. If the channel has a positive deposit and is not
- * finalized, it resumes from the on-chain settled amount.
+ * via `getOnChainChannel()`. If the channel has enough available balance and is
+ * not finalized, it resumes from the on-chain settled amount. Otherwise, it
+ * opens a new channel for the next payment.
  */
 export function sessionManager(parameters: sessionManager.Parameters): SessionManager {
   const fetchFn = parameters.fetch ?? globalThis.fetch