Transaction declined or disputed

A counterparty may decline or dispute a transaction for compliance or data-quality reasons. This page outlines the typical operational response and the records you should keep.

Use it to define your dispute handling and escalation process.

• Why counterparties might decline or dispute transactions
• What records and evidence should exist
• How to coordinate follow-up actions across teams

• Missing or inconsistent Travel Rule data
• High-risk beneficiary or originator flags
• Counterparty policy requiring additional verification

Declined transactions are typically handled outside of real-time settlement:

1. Pause and notify - Alert compliance and customer support teams that the counterparty declined the transfer.
2. Collect additional information - Request missing data or clarification from the customer.
3. Document the decision - Record the decline reason and any remediation steps taken.
4. Decide the next action - Cancel, re-submit with updated data, or proceed under a documented exception policy.

• The decline reason and timestamps
• Any customer communication or remediation steps
• Final disposition (cancelled, re-submitted, or approved under exception)

• Missing or incomplete Travel Rule data
• End-to-end Travel Rule lifecycle