This topic explains the steps that are applicable for the return transaction processing of a settled inbound transaction are covered in this topic.

It refers to the set of processes and workflows involved in handling returned payments that were originally sent out that is, outbound payments but need to be reversed or refunded. Return processing creates a Return transaction with a system generated Return Reference, and the Return transaction status tracks the return processing.

This topic contains the following sub-topics:

• 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.
• 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.