6.2 Outbound Return/Reject Processing
This topic describes the processing of outbound return or reject transactions, in which a payment transaction sent to a receiving institution is subsequently returned or rejected and routed back to the originating financial institution.
For settled payments, return processing generates a Return message, and the transaction status is updated to reflect the progress of the return process.
For unsettled payments, return processing may generate a Return message, a Reject message, or both. The transaction status is updated accordingly to track the progress of the return or reject process.
The following processing steps are applicable for the outbound return or reject processing of a settled outbound transaction:
- Instructed Agent Resolution
Instructed Agent Resolution refers to a process within the payments system where an instructed agent usually an intermediary or correspondent bank, that needs to resolve issues or provide clarifications related to a payment instruction. - Instructed Agent (Cover) Resolution
Instructed Agent (Cover) Resolution is a process used in payment processing where an instructed agent is involved in handling cover payments for cross-border transactions - Return Chain Population
Return Chain Population is a process related to the handling of returned payments or payment reversals. - Return Settlement Date Derivation
Return Settlement Date Derivation is the process of determining the settlement date for a returned payment, particularly in the context of cross-border payments or payment reversals. - Return Days Validation
Return Days Validation refers to the process of validating the allowable number of days within which a payment can be returned after it has been processed and settled. - Sanctions Check
Sanctions Check refers to the process of verifying payment transactions against sanctions lists to ensure that the transaction complies with global regulatory requirements. - Exchange Rate/FX Processing
Exchange Rate or FX Processing refers to the system's ability to manage and apply foreign exchange (FX) rates to payment transactions that involve different currencies. - External Credit Approval
External Credit Approval refers to the process of obtaining credit approval from an external or third-party source before processing certain payment transactions. - Return Accounting
Return Accounting is the process of accounting for payments that are returned, rejected, or failed during the payment settlement process. - Transaction Status Update
Transaction Status refers to the process of updating the status or state of a payment transaction as it moves through various stages of processing. - Return Message Generation
Return Message Generation refers to the process where the system generates a message in response to a payment transaction or instruction that has failed or encountered an issue during processing. - Reject Message Generation
Reject Message Generation refers to the process of creating and sending a message that informs the payment initiator that the payment has been rejected by the bank or an external payment network. - Transaction Cancellation Processing
Transaction Cancellation Processing is a process by which a bank or financial institution can cancel a payment transaction after it has been initiated, before it has been fully settled or processed. - Return Suppression
Return Suppression is process of preventing the generation or sending of return messages for specific transactions, even if those transactions fail or encounter an issue during processing. - TARGET2 Multi Addressee Support
TARGET2 multi addressee refers to the capability to manage and process payments to multiple recipients or addressees within the TARGET2 payment system.