Debtor FI Outgoing Request for Return of Funds (TCH)

The main Debtor FI Outgoing Request for Return of Funds flow.

Use case summary

The Request for Return of Funds is initiated by a (debtor) client who requires a payment return from a creditor. The request is delivered by the debtor financial institution (FI) to the clearing and settlement mechanism (CSM). The CSM delivers the request to the creditor FI, who can pass the request to their (creditor) client.

Having delivered the Request for Return of Funds request to the CSM, the debtor FI times out if it does not receive a status confirmation from the CSM within the defined period. At this time, it re-sends the request with a possible duplicate flag, continues waiting for the status confirmation, and, possibly, re-sends again after further time outs. An option is provided for operations to manually cancel the request. This would normally only be used in the case of a prolonged outage of communication to the CSM, when it can also be confirmed that the request was never delivered to, and processed by, the CSM.

The debtor FI outgoing Request for Return of Funds case consists of the following processing steps:
  • FTM for Immediate Payments receives a request from the channels interface on behalf of a (debtor) client to initiate a Request for Return of Funds. Alternatively a Return on Funds request can be initiated from the OAC by an operator, using an 'Initiate Recall' action for an existing completed outgoing credit transfer.
  • The request is validated, which can include duplicate checking and correlation to an original credit transfer.
  • If the previous validation step is successful, the set of services that are configured for the pre-check set are invoked.
  • If the pre-checks are successful, a Request for Return of Funds request is sent to the CSM.
  • FTM for Immediate Payments then waits for the confirmation status message from the CSM.
  • If the status message is not received within a defined timeout limit, the debtor FI times out and re-sends the request with a possible duplicate flag to the CSM, restarts the timer, and continues waiting. This step can repeat until either a status confirmation is received from the CSM or the operator cancel is issued.
  • Next, FTM for Immediate Payments sends an acknowledgment to the channels interface, which, in turn, may provide a notification to the (debtor) client.
  • The transaction will then wait for a Request for Return Response (reject) or a Payment Return to be received and will finish up in a 'Rejected' or 'Accepted' state depending on which message is received in response. It is worth noting that this response may originate via either the creditor or via the creditor FI through an operator action.

TCH 2.9 support

For TCH 2.9, the Request for Return of Funds (camt.056) message has been extended to allow additional cancellation reason codes, while the TCH validation rules for message content have been updated. The FTM for Immediate Payments Return of Funds process has been updated so that when the configured TCH version is 2.9, it will recognise and accept the new reason codes, as well as validate the content of the message with respect to the new rules. If the configured TCH version is not 2.9, the FTM for Immediate Payments Return of Funds process will not apply the new message content validation rules, and will reject the new 2.9 specific codes.

When initiating a Request for Return of Funds from the OAC, a new command ‘Initiate Recall’ can be selected which supports the following parameters:
Table 1. 'Initiate Recall' command parameters for TCH 2.9
  Command
Initiate Recall

Parameters		 CancellationReasonCode Y
CancellationReasonInformation Y
CancellationOriginatorAgent Optional, max of one to be provided
CancellationOriginatorName

Use case high-level sequence diagram

The high-level sequence diagram for the debtor FI outgoing Request for Return of Funds case is shown in the following figure:
Figure 1. Debtor FI Outgoing Request for Return of Funds - high-level sequence diagram
fxrfnctdebtortchoutgoingrequestforreturnoffundshighlevel.png

Use case detailed sequence diagram

FTM for Immediate Payments, which is represented by one lifeline in the preceding high-level sequence diagrams, has been divided into multiple lower level lifelines in the following series of sequence diagrams. The lower level lifelines are grouped together by yellow boxes.

Figure 2. Debtor FI Outgoing Request For Return of Funds - Good
fxrfnctdebtortchoutgoingrequestforreturnoffundsdsd1.png
Table 2. Links to the diagrams for the referenced interactions
Referenced interaction Reference link
Log and Map Single Txn Log and map single transaction diagram
Inline Send Txn (Expect Ack) Send transaction expect acknowledgment diagram
Inline Send Txn (Fire and Forget) Send transaction fire and forget diagram

Use case simple object lifecycle diagram

Figure 3. Debtor FI Outgoing Request For Return of Funds
fxrfnctdebtortchoutgoingrequestforreturnoffundsold1.png