Rejects

If a participant (IPS, SAP or PSP) is not able to accept the payment for any of the reasons given below, it must respond to the payment instruction with a rejection:

• If the rejection takes place during in the Source leg of the transaction, the transaction will be rejected before the message reaches the Nexus Gateway. This rejection can be handled by the Source IPS; the Source IPS does not need to inform Nexus of this rejected transaction.

• If the rejection takes place after Nexus has received the transaction, the Destination IPS must report this rejected transaction to the Nexus Gateway using a pacs.002 message with the status code RJCT and an appropriate reason code. See MESSAGE pacs.002 Payment Status Report for more details, including the ISO 20022 error codes supported by Nexus.

Causes of Rejection

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

• The Source SAP, Destination SAP or Destination PSP applies sanctions screening (if required by local legislation) and decides it does not want to process the payment, due to concerns about either the Sender or the Recipient

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

• The Destination SAP checks the 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

A full list of reject reasons is included in MESSAGE pacs.002 Payment Status Report. The Message Guidelines (Excel) further stipulates which error codes can be used by which party.