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pain.007 & pacs.007 — Payment Reversal & Recall

Overview​

Payment reversals allow the sending side (debtor bank or originating customer) to request that a previously submitted payment be reversed — cancelling the credit and returning funds. Two messages handle this:

MessageNameDirectionScope
pain.007CustomerPaymentReversalCustomer → Debtor BankReversal of a pain.001
pacs.007FIToFIPaymentReversalDebtor Bank → Creditor BankInterbank reversal instruction

Key concept: A reversal is requested by the sender. A return (pacs.004) is initiated by the receiver when they can't apply the payment.

When to Use Each Message​

SCENARIO 1 — Customer discovers an error (wrong amount, wrong account):
  Customer ──[pain.007]──► Debtor Bank
  Debtor Bank ──[pacs.007]──► Creditor Bank   (if already sent)
  Creditor Bank ──[pacs.004]──► Debtor Bank   (if creditor agrees)

SCENARIO 2 — Bank discovers a processing error after submission:
  Debtor Bank ──[pacs.007]──► Creditor Bank   (directly, no pain.007)
  Creditor Bank ──[pacs.004]──► Debtor Bank   (return of funds)

SCENARIO 3 — Payment not yet settled (still in queue):
  Internal cancellation — no ISO message needed
  Just dequeue and release the hold

pain.007 — CustomerPaymentReversal​

Overview​

pain.007 is sent by the originating customer to their bank to request the reversal of a previously submitted pain.001.

  • Full name: CustomerPaymentReversalV11
  • Direction: Customer → Debtor Bank
  • Triggers: pacs.007 from the bank to the counterparty

Message Structure​

pain.007
├── GrpHdr
│   ├── MsgId
│   ├── CreDtTm
│   └── InitgPty                        Customer making the reversal request
│
└── OrgnlPmtInfAndRvsl                  ← 1..n
    ├── RvslPmtInfId                    New ID for this reversal instruction
    ├── OrgnlPmtInfId                   PmtInfId from original pain.001
    ├── RvslRsnInf                      Reason for reversal
    │   └── Rsn → Cd                   e.g., DUPL, FRAD, UPAY
    │
    └── TxInf                           ← 1..n (per transaction to reverse)
        ├── RvslId                      Unique reversal transaction ID
        ├── OrgnlInstrId                InstrId from original pain.001
        ├── OrgnlEndToEndId             EndToEndId from original pain.001
        └── OrgnlInstdAmt              Amount to reverse

Reversal Reason Codes (pain.007 / pacs.007)​

CodeReason
DUPLDuplicate payment — same payment sent twice
FRADFraudulent origin — payment originated by fraud
UPAYUndue Payment — payment was not due/authorised
TECHTechnical problem at sender side
CUSTRequested by customer
AGNTIncorrect agent details
AM09Wrong amount
NARRFree text narrative

pacs.007 — FIToFIPaymentReversal​

Overview​

pacs.007 is the interbank reversal message sent from the Debtor Bank to the Creditor Bank, requesting the reversal of a pacs.008.

  • Full name: FIToFIPaymentReversalV12
  • Direction: Debtor Bank → Creditor Bank
  • Triggered by: pain.007 from customer, or bank-initiated error correction

Message Structure​

pacs.007
├── GrpHdr
│   ├── MsgId
│   ├── CreDtTm
│   ├── NbOfTxs
│   ├── TtlRvsdIntrBkSttlmAmt
│   └── SttlmInf
│
└── TxInf                               ← 1..n
    ├── RvslId                          New reversal transaction ID
    ├── OrgnlGrpInf
    │   ├── OrgnlMsgId                  Original pacs.008 MsgId
    │   └── OrgnlMsgNmId               "pacs.008.001.10"
    ├── OrgnlInstrId                    Original InstrId
    ├── OrgnlEndToEndId                 Original EndToEndId
    ├── OrgnlTxId                       Original TxId
    ├── OrgnlUETR                       Original UETR (SWIFT)
    ├── RvsdIntrBkSttlmAmt             Amount to reverse
    ├── RvslRsnInf
    │   └── Rsn → Cd                   Reason code
    └── OrgnlTxRef                     Echo of original pacs.008 parties

Reversal vs Return: The Critical Difference​

REVERSAL (pacs.007)                  RETURN (pacs.004)
────────────────────────────         ────────────────────────────
Initiator:  DEBTOR BANK              Initiator: CREDITOR BANK
Reason:     Sender's error/fraud     Reason: Cannot apply credit
Consent:    Creditor bank must agree Consent: Not required
Funds:      Were correctly sent      Funds:  Cannot be credited
Response:   Creditor sends pacs.004  Response: No separate request needed
              back if agreeing
Timeline:   Time-sensitive — harder  Timeline: Governed by scheme rules
              to reverse after credit              (up to 14 days NPP)

Reversal Flow (Full Chain)​

Customer          Debtor Bank           Creditor Bank         Customer B

    ──[pain.007]─►│
                  │─Validate reversal
                  │─Check: already sent?
                  │    YES (pacs.008 already submitted):
                  │      ──[pacs.007]──────────────────►│
                  │                                     │─Check: already credited?
                  │                                     │   NO: Cancel + Agree
                  │                                     │   YES: Need consent
                  │                                     │       from Customer B
                  │◄─[pacs.004 FOCR]───────────────────│
                  │  (return, reason: FOCR)             │
                  │─Credit debtor account               │─Debit/cancel credit
                  │─Send camt.054 (CRDT)                │─Send camt.054 to B
                  ◄──[pain.002 RVRSD]─────────────────── (if applicable)

FOCR — Following Cancellation Request​

When a creditor bank agrees to a reversal request (pacs.007), they respond with a pacs.004 using reason code FOCR (Following Cancellation Request), confirming funds are being returned.

Cancellation Requests: camt.056​

For a more formal approach to recalling a payment, banks use camt.056 — see the camt.055 & camt.056 page. The relationship:

pacs.007  ─── Operational reversal instruction (bilateral)
camt.056  ─── Formal cancellation request (standardised, tracked)

On SWIFT gpi, camt.056 is the preferred mechanism for recalls, as it integrates with gpi tracking.

When a Reversal Is Refused​

The creditor bank may refuse to return funds if:

  • Funds have already been withdrawn by the beneficiary
  • Beneficiary does not consent (for legitimate credits)
  • Return window has elapsed
  • Legal order in place (e.g., court freeze)

In this case, the debtor bank receives no pacs.004, and must pursue recovery through other means (legal action, bilateral negotiation, fraud teams).

Java Spring Notes​

// pain.007 processing — customer reversal request
@Service
public class Pain007ProcessingService {

    @Transactional
    public ReversalResult process(CustomerPaymentReversalV11 pain007) {
        for (var rvsl : pain007.getOrgnlPmtInfAndRvsl()) {
            for (var txInfo : rvsl.getTxInf()) {
                String origE2EId = txInfo.getOrgnlEndToEndId();
                
                PaymentOrder order = paymentRepository
                    .findByEndToEndId(origE2EId)
                    .orElseThrow();

                // Can we still reverse?
                if (!reversalPolicy.canReverse(order)) {
                    throw new ReversalNotPermittedException(
                        "Payment already settled and credited: " + origE2EId);
                }

                String reasonCode = rvsl.getRvslRsnInf().get(0)
                    .getRsn().getCd().value();

                // Build and send pacs.007 to creditor bank
                Pacs007 pacs007 = pacs007Builder.build(order, reasonCode);
                networkGateway.send(pacs007);

                order.setStatus(PaymentStatus.REVERSAL_REQUESTED);
                order.setReversalReason(reasonCode);
                paymentRepository.save(order);
            }
        }
        return ReversalResult.pending();
    }
}