PEXA Framework for managing Mistaken Payments
When completing a financial settlement in PEXA, there is a risk that a payment error, or Mistaken Payment, may occur where a payment is processed by a bank, resulting in either:
MISAPPLIED FUNDS - where funds have been received in an unrelated or unintended account instead of the account of the intended beneficiary,
or
UNAPPLIED FUNDS - where funds are unable to be credited to the nominated account.
In the PEXA System, financial settlement is coordinated through payment instructions, sent from PEXA to Financial Institutions, as specified by members in the Workspace. Accordingly, PEXA has limited control over processes for the recovery and return of funds in response to a Mistaken Payment event.
Resolving Mistaken Payment events requires cooperation between all parties.