How to Implement
Guidance
Define the moment of irrevocability.
Scheme rules clearly specify when irrevocability occurs. For example, a transfer is considered irrevocable after the payer confirms to the sending DFSP that the transfer should be initiated.
Communicate moment of irrevocability to end users.
Scheme rules require DFSPs to include a notice to the payer that the payment cannot be recalled or cancelled after the moment of irrevocability.
Highlight methods for return of funds.
DFSPs should make it clear to end users that once a transfer is considered irrevocable, the payer may request the payee to initiate a new transfer to return the funds received, for example, if the funds were sent in error. Robust complaint and resolution mechanisms further support end users in seeking a return of funds (a new transfer) that were sent as a result of fraud. In both cases, the initial transfer and the new transfer that returns funds to the end user (if initiated) are considered two separate irrevocable transactions.
Why It Matters
This provides the certainty on the ownership of the funds, specifically, that the funds are available to the payee at moment of irrevocability, allowing them to use the funds immediately.
Seeing More Clearly
Select a lens to learn the “why” this practice.
Women’s Inclusion
Women’s lower purchasing power and higher time poverty make it essential that funds received can be used immediately for all needs. For a woman sender, fear of making an error or being defrauded may raise concerns about irrevocability – strong complaint and resolution mechanisms, clearly visible to end users will allay these fears by supporting request for funds returns, when sent in error or due to fraud.
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