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Jp Morgan Wallet

Matched returns

Overview

A matched return is a process where returned funds from a PayOut (such as a payment that could not be completed to a beneficiary) are successfully matched back to the original transaction or Virtual Transaction Account (VTA) that initiated the payment.

This matching is crucial for accurate reconciliation and ensures that the returned funds are credited to the correct VTA, rather than being routed to a default or suspense account.

How matched returns work in Wallet

Wallet uses the following methods to match returned funds to the original VTA.

  • Return identification: When a PayOut is returned (for example, due to a closed or invalid beneficiary account), Wallet receives the return transaction and attempts to identify the original PayOut transaction using transaction attributes such as the original transaction ID, client reference, or other unique identifiers.
  • Auto-matching process: The Wallet reconciliation process uses these attributes to auto-match the returned funds to the original PayOut transaction. If a match is successful, the system updates both the transaction in the Default VTA (where returns are initially credited) and the original PayOut transaction to reflect the auto-match.
  • Crediting the correct VTA: Once matched, the returned funds are credited back to the originating VTA (the account that was debited for the original PayOut), ensuring accurate allocation and reporting.
  • Unmatched returns: If the system cannot match the return to an original transaction, the funds remain in the Default VTA. In such cases, you must manually move the funds to the correct VTA using a Virtual-to-Virtual (V2V) transfer request.

Why is this important?

This process is part of the end-of-day (EOD) reconciliation in Wallet, which ensures that all completed and funded transactions in the Wallet Demand Deposit Account (DDA) are aligned with those posted to the physical DDA.

The auto-matching of returns helps maintain accurate records, reduces manual intervention, and ensures that you can track and reconcile returned payments.

See matched and unmatched returns

The returns report lists PayOut returns received and matched to the original transaction and credited back to the original debited VTA. The report also lists unmatched returns that could not be credited back and thus were credited to the Default VTA.

You are subscribed to the returns report by default. Wallet sends out the report at the end of every business day.