Unsuccessful payments

Reasons why payments might fail

A number of events can cause the payment to be unsuccessful (aside from technical timeouts). For example:

• The Source SAP, Destination SAP or Destination PSP applies sanctions screening and decides it does not want to process the payment, due to issues with either the Sender or the Recipient

• The Source PSP may have insufficient funds in their IPS settlement account to make the payment

• The Destination SAP checks that balance of the FXP’s account and finds it is insufficient to cover this payment

• The Destination SAP’s own settlement account at the IPS has insufficient funds to make the payment to the Destination PSP

• The Destination PSP finds that the Recipient’s account is closed, dormant or frozen

Process for unsuccessful payments

In the scenarios above, the participant that triggers the failure will send a pacs.002 with a status code of RJCT (reject). This will flow back through the system and lead to the payment being reversed.

In a real-time gross system:

• If reservations/locks were made against funds held by either the Source PSP or the Destination SAP, these reservations will be released/unlocked.

• If funds have already been transferred between (a) the Source PSP and Source SAP OR (b) the Destination SAP and the Destination PSP, these transfers must be reversed.

In a Deferred Net Settlement system:

• The record of obligation between (a) the Source PSP and Source SAP OR (b) the Destination SAP and the Destination PSP, must be cancelled or reversed.