Defective execution
A payment that is not executed, or executed late or incorrectly; the rules set which provider is liable.
Under the UK Payment Services Regulations and PSD2, providers are liable for non-execution or defective or late execution of payment transactions, with the rules allocating responsibility between the payer's and the payee's provider. A separate rule covers incorrect unique identifiers: if the payer supplied the wrong account identifier, the provider is not liable for the misdirected payment but must make reasonable efforts to recover the funds. An agent that supplies a wrong identifier is therefore a direct source of loss that the customer may bear.
Agent Minute explains this term on 2 February 2027.
Related terms
Credit transferA payment pushed from the payer's account to the payee's account on the payer's instruction.Payment initiation serviceA service that initiates a payment order at the user's request from an account held at another provider.Unauthorised payment transactionA payment the payer did not consent to; in the EU and UK the payer's provider must generally refund it promptly.ConfabulationConfidently stated but false or erroneous output from a generative AI system, often called hallucination.