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The bank that sent you a payment can ask for it back: an incoming camt.056 cancellation request arrives for a payment you received. The platform matches it to your inbound payment automatically - you work with the payment’s transaction ID and simply decide: return the funds or keep them.

How it works

1

Request arrives

The camt.056 is matched to your inbound payment automatically. A cancellation request is created and you are notified by webhook (CANCELLATION_IN_PROGRESS) with the reason and the transaction ID.
2

You decide

Review and respond via API or the PGW UI: accept (return the funds) or reject (keep them).
3

Accept: funds returned

The cancellation moves to RETURNING and stays there while the return travels. The original inbound payment stays Completed; a separate Payment return transaction (pacs.004) is created back to the originator and tracked via the SWIFT Frontend Tracker. When the return transaction reaches Completed (delivery confirmed), the cancellation gets its final status - webhook PAYMENT_RETURNED. The return itself answers the request.
4

Reject: refusal sent

The cancellation moves to REFUSING while the camt.029 resolution with your rejection reason travels back to the originating bank - webhook CANCELLATION_REFUSED on delivery (final). The funds stay with the beneficiary.

Webhooks

Two webhook types are involved: the cancellation request emits Payment Cancellation Status Change events, while the Payment return transaction (created when you accept) emits Payment Status Change events.
Status values are shown exactly as they arrive on the wire: the Payment Status Change webhook uses title case (Cancelled, Sent to clear), the Cancellation Status Change webhook uses upper snake case (CANCELLATION_IN_PROGRESS, PAYMENT_RETURNED).

API Reference

Accept Cancellation

Accept an incoming request and return funds

Reject Cancellation

Reject an incoming request and keep funds

Next Steps

Payment statuses

Inbound statuses and hold reasons explained

Statements

Reconcile returned funds
Last modified on August 5, 2026