---
term: "Defective execution"
category: "Liability and disputes"
url: https://agenticopenfinance.com/glossary/defective-execution
source: AgenticOpenFinance glossary
---

# 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.

Related terms: [Credit transfer](https://agenticopenfinance.com/glossary/credit-transfer.md), [Payment initiation service](https://agenticopenfinance.com/glossary/payment-initiation-service.md), [Unauthorised payment transaction](https://agenticopenfinance.com/glossary/unauthorised-payment-transaction.md), [Confabulation](https://agenticopenfinance.com/glossary/confabulation.md)