In a Payments life cycle, the Initiating Party can send a CustomerPaymentCancellationRequest (camt.055) message in customer to bank space or a FIToFIPaymentCancellationRequest (camt.056) message in interbank space to initiate the cancellation of payment. Request for cancellation of payment is a type of Recall.  
If the Debtor has initiated CustomerPaymentCancellationRequest, it will go through the same path as the original CustomerCreditTransferInitiation message. When the CustomerPaymentCancellationRequest is forwarded by Forwarding Agent to Debtor Agent, the NotificationOfCaseAssignment will be sent to Debtor. 

The case assignee who will cancel the payment will send a NotificationOfCaseAssignment (MINE) to all the parties until it reaches the case creator. The case assignee which acts on payment cancellation (Creditor Agent in case of credit transfer) sends DebitAuthorisationRequest (camt.037) to the creditor requesting authorization to debit its account. The creditor responds to this authorization request by returning DebitAuthorisationResponse (camt.036). On receiving DebitAuthorisationResponse, the case assignee debits the creditor’s account and returns ResolutionOfInvestigation with status canceled (CNCL). 
This message is also routed to all parties until it reaches the case creator. When Debtor Agent gets the ResolutionOfInvestigation (CNCL), it credits the Debtor account. 

Illustration 1 - Debtor initiated the cancellation of payment after settlement.
Illustration 2 - Creditor’s name and account details are incorrect or the creditor account is closed.

References

https://www.iso20022.org/documents/general/MDR_PaymentsInitiation_Maintenance_2015_2016.zip

How Can We Help?

 

We at Nth Exception collaborate with Banks and Financial Institutions to analyze, solutionize, and optimize cross border payment processes. Our service offers are best equipped to help you define a comprehensive roadmap for SWIFT gpi and ISO20022 implementation that will ultimately reduce the overall effort. 

We work with the End Users to define ‘To Be’ Workflows and develop a Target Operating Model focusing on optimization and innovation.