Are DNS payments typically irrevocable?

DNS payments, or Deferred Net Settlement payments, generally have the characteristic of being revocable, meaning that transactions can be reversed or canceled under certain conditions. However, it is also true that some DNS payments can be structured in a manner that guarantees their irrevocability. For instance, when dealing with high-value transactions or in certain financial systems where the settlement process is designed to protect the parties involved, irrevocable payments might be an option.

The option stating that DNS payments are generally revocable but some are guaranteed irrevocable captures this nuance perfectly. It acknowledges that while many DNS transactions allow for reversibility, there are specific circumstances where irrevocability is a feature designed to enhance security or assurance for the parties involved.

This understanding is crucial in financial contexts, as it affects how parties manage risks associated with payment failures or disputes. Recognizing that some DNS payments can be irrevocable informs practitioners about the differing guarantees of transaction finalization typically encountered in payment systems.