diff --git a/apps/hellgate/src/hg_invoice_payment.erl b/apps/hellgate/src/hg_invoice_payment.erl
index a15f442..73c53f5 100644
--- a/apps/hellgate/src/hg_invoice_payment.erl
+++ b/apps/hellgate/src/hg_invoice_payment.erl
@@ -2214,10 +2214,12 @@ process_failure({payment, Step} = Activity, Events, Action, Failure, St, _Refund
             _ = maybe_notify_fault_detector(Activity, TargetType, OperationStatus, St),
             process_fatal_payment_failure(Target, Events, Action, Failure, St)
     end;
-
-process_failure({refund_new, ID}, [], Action, Failure, _St, _RefundSt) ->
-    {next, {[?refund_ev(ID, ?refund_rollback_started(Failure))], hg_machine_action:set_timeout(0, Action)}};
-process_failure({refund_session, ID}, Events, Action, Failure, St, _RefundSt) ->
+process_failure({refund_new, ID}, Events, Action, Failure, St, RefundSt) ->
+    _Clocks = rollback_refund_cashflow(RefundSt, St),
+    {done, {Events ++ [?refund_ev(ID, ?refund_status_changed(?refund_failed(Failure)))], Action}};
+% process_failure({refund_new, ID}, [], Action, Failure, _St, _RefundSt) ->
+%     {next, {[?refund_ev(ID, ?refund_rollback_started(Failure))], hg_machine_action:set_timeout(0, Action)}};
+process_failure({refund_session, ID}, Events, Action, Failure, St, RefundSt) ->
     Target = ?refunded(),
     case check_retry_possibility(Target, Failure, St) of
         {retry, Timeout} ->
@@ -2226,10 +2228,16 @@ process_failure({refund_session, ID}, Events, Action, Failure, St, _RefundSt) ->
             Events1 = [?refund_ev(ID, E) || E <- SessionEvents],
             {next, {Events ++ Events1, SessionAction}};
         fatal ->
+            _Clocks = rollback_refund_cashflow(RefundSt, St),
             Events1 = [
-                ?refund_ev(ID, ?refund_rollback_started(Failure))
+                ?refund_ev(ID, ?refund_status_changed(?refund_failed(Failure)))
             ],
-            {next, {Events ++ Events1, hg_machine_action:set_timeout(0, Action)}}
+            {done, {Events ++ Events1, Action}}
+        % fatal ->
+        %     Events1 = [
+        %         ?refund_ev(ID, ?refund_rollback_started(Failure))
+        %     ],
+        %     {next, {Events ++ Events1, hg_machine_action:set_timeout(0, Action)}}
     end.
 
 choose_fd_operation_status_for_failure({failure, Failure}) ->
@@ -2292,9 +2300,15 @@ process_fatal_payment_failure(?cancelled(), _Events, _Action, Failure, _St) ->
     error({invalid_cancel_failure, Failure});
 process_fatal_payment_failure(?captured(), _Events, _Action, Failure, _St) ->
     error({invalid_capture_failure, Failure});
-process_fatal_payment_failure(?processed(), Events, Action, Failure, _St) ->
-    RollbackStarted = [?payment_rollback_started(Failure)],
-    {next, {Events ++ RollbackStarted, hg_machine_action:set_timeout(0, Action)}}.
+% process_fatal_payment_failure(?processed(), [], Action, Failure, _St) ->
+%     {next, {[?payment_rollback_started(Failure)], hg_machine_action:set_timeout(0, Action)}};
+% process_fatal_payment_failure(?processed(), Events, Action, Failure, _St) ->
+%     RollbackStarted = [?payment_rollback_started(Failure)],
+%     {next, {Events ++ RollbackStarted, hg_machine_action:set_timeout(0, Action)}};
+process_fatal_payment_failure(_Target, Events, Action, Failure, St) ->
+    _Clocks = rollback_payment_cashflow(St),
+    PaymentFailed = [?payment_status_changed(?failed(Failure))],
+    {done, {Events ++ PaymentFailed, Action}}.
 
 retry_session(Action, Target, Timeout) ->
     NewEvents = start_session(Target),
@@ -2831,7 +2845,12 @@ merge_change(?payment_status_changed(Status), #st{activity = {adjustment_pending
         }
     };
 merge_change(Change = ?payment_rollback_started(Failure), St, Opts) ->
-    _ = validate_transition([{payment, processing_session}], Change, St, Opts),
+    _ = validate_transition([{payment, S} || S <- [
+        risk_scoring,
+        routing,
+        processing_session,
+        processing_failure
+    ]], Change, St, Opts),
     St#st{
         failure    = Failure,
         activity   = {payment, processing_failure},
@@ -2841,6 +2860,7 @@ merge_change(Change = ?payment_status_changed({failed, _} = Status), #st{payment
     _ = validate_transition([{payment, S} || S <- [
         risk_scoring,
         routing,
+        processing_session,
         processing_failure
     ]], Change, St, Opts),
     St#st{
@@ -2943,7 +2963,7 @@ merge_change(Change = ?refund_ev(ID, Event), St, Opts) ->
             _ = validate_transition([{refund_session, ID}, {refund_new, ID}], Change, St, Opts),
             St#st{activity = {refund_failure, ID}};
         ?refund_status_changed(?refund_failed(_)) ->
-            _ = validate_transition([{refund_failure, ID}], Change, St, Opts),
+            _ = validate_transition([{refund_session, ID}, {refund_new, ID}, {refund_failure, ID}], Change, St, Opts),
             St;
         _ ->
             _ = validate_transition([{refund_session, ID}], Change, St, Opts),
diff --git a/apps/hellgate/test/hg_invoice_tests_SUITE.erl b/apps/hellgate/test/hg_invoice_tests_SUITE.erl
index b60c6c7..a14e6a7 100644
--- a/apps/hellgate/test/hg_invoice_tests_SUITE.erl
+++ b/apps/hellgate/test/hg_invoice_tests_SUITE.erl
@@ -947,7 +947,6 @@ processing_deadline_reached_test(C) ->
     PaymentParams = PaymentParams0#payproc_InvoicePaymentParams{processing_deadline = Deadline},
     PaymentID = start_payment(InvoiceID, PaymentParams, Client),
     PaymentID = await_sessions_restarts(PaymentID, ?processed(), InvoiceID, Client, 0),
-    [?payment_ev(PaymentID, ?payment_rollback_started({failure, Failure}))] = next_event(InvoiceID, Client),
     [?payment_ev(PaymentID, ?payment_status_changed(?failed({failure, Failure})))] = next_event(InvoiceID, Client),
     ok = payproc_errors:match(
         'PaymentFailure',
@@ -1252,11 +1251,8 @@ payment_suspend_timeout_failure(C) ->
     ] = next_event(InvoiceID, Client),
     PaymentID = await_payment_session_started(InvoiceID, PaymentID, Client, ?processed()),
     [
-        ?payment_ev(PaymentID, ?session_ev(?processed(), ?session_finished(?session_failed({failure, Failure})))),
-        ?payment_ev(PaymentID, ?payment_rollback_started({failure, Failure}))
-    ] = next_event(InvoiceID, Client),
-    [
-        ?payment_ev(PaymentID, ?payment_status_changed(?failed({failure, Failure})))
+        ?payment_ev(PaymentID, ?session_ev(?processed(), ?session_finished(?session_failed({failure, _Failure})))),
+        ?payment_ev(PaymentID, ?payment_status_changed(?failed({failure, _Failure})))
     ] = next_event(InvoiceID, Client).
 
 -spec payment_w_wallet_success(config()) -> _ | no_return().
@@ -3448,9 +3444,6 @@ payment_refund_success(C) ->
     Refund0 = #domain_InvoicePaymentRefund{id = RefundID0} =
         hg_client_invoicing:refund_payment(InvoiceID, PaymentID, RefundParams, Client),
     PaymentID = refund_payment(InvoiceID, PaymentID, RefundID0, Refund0, Client),
-    [
-        ?payment_ev(PaymentID, ?refund_ev(RefundID0, ?refund_rollback_started(Failure)))
-    ] = next_event(InvoiceID, Client),
     [
         ?payment_ev(PaymentID, ?refund_ev(RefundID0, ?refund_status_changed(?refund_failed(Failure))))
     ] = next_event(InvoiceID, Client),
@@ -3500,9 +3493,6 @@ payment_refund_failure(C) ->
     Refund0 = #domain_InvoicePaymentRefund{id = RefundID0} =
         hg_client_invoicing:refund_payment(InvoiceID, PaymentID, RefundParams, Client),
     PaymentID = refund_payment(InvoiceID, PaymentID, RefundID0, Refund0, Client),
-    [
-        ?payment_ev(PaymentID, ?refund_ev(RefundID0, ?refund_rollback_started(NoFunds)))
-    ] = next_event(InvoiceID, Client),
     [
         ?payment_ev(PaymentID, ?refund_ev(RefundID0, ?refund_status_changed(?refund_failed(NoFunds))))
     ] = next_event(InvoiceID, Client),
@@ -3519,9 +3509,6 @@ payment_refund_failure(C) ->
     PaymentID = await_refund_session_started(InvoiceID, PaymentID, RefundID, Client),
     [
         ?payment_ev(PaymentID, ?refund_ev(ID, ?session_ev(?refunded(), ?session_finished(?session_failed(Failure))))),
-        ?payment_ev(PaymentID, ?refund_ev(ID, ?refund_rollback_started(Failure)))
-    ] = next_event(InvoiceID, Client),
-    [
         ?payment_ev(PaymentID, ?refund_ev(ID, ?refund_status_changed(?refund_failed(Failure))))
     ] = next_event(InvoiceID, Client),
     #domain_InvoicePaymentRefund{status = ?refund_failed(Failure)} =
@@ -3544,17 +3531,14 @@ deadline_doesnt_affect_payment_refund(C) ->
     PaymentID = await_payment_capture(InvoiceID, PaymentID, Client),
     timer:sleep(ProcessingDeadline),
     % not enough funds on the merchant account
-    NoFunds = {failure, payproc_errors:construct('RefundFailure',
+    Failure = {failure, payproc_errors:construct('RefundFailure',
         {terms_violated, {insufficient_merchant_funds, #payprocerr_GeneralFailure{}}}
     )},
     Refund0 = #domain_InvoicePaymentRefund{id = RefundID0} =
         hg_client_invoicing:refund_payment(InvoiceID, PaymentID, RefundParams, Client),
     PaymentID = refund_payment(InvoiceID, PaymentID, RefundID0, Refund0, Client),
     [
-        ?payment_ev(PaymentID, ?refund_ev(RefundID0, ?refund_rollback_started(NoFunds)))
-    ] = next_event(InvoiceID, Client),
-    [
-        ?payment_ev(PaymentID, ?refund_ev(RefundID0, ?refund_status_changed(?refund_failed(NoFunds))))
+        ?payment_ev(PaymentID, ?refund_ev(RefundID0, ?refund_status_changed(?refund_failed(Failure))))
     ] = next_event(InvoiceID, Client),
     % top up merchant account
     InvoiceID2 = start_invoice(ShopID, <<"rubberduck">>, make_due_date(10), 42000, C),
@@ -3594,7 +3578,7 @@ payment_manual_refund(C) ->
     },
     PaymentID = await_payment_capture(InvoiceID, PaymentID, Client),
     % not enough funds on the merchant account
-    NoFunds = {failure, payproc_errors:construct('RefundFailure',
+    Failure = {failure, payproc_errors:construct('RefundFailure',
         {terms_violated, {insufficient_merchant_funds, #payprocerr_GeneralFailure{}}}
     )},
     Refund0 = #domain_InvoicePaymentRefund{id = RefundID0} =
@@ -3603,10 +3587,7 @@ payment_manual_refund(C) ->
         ?payment_ev(PaymentID, ?refund_ev(RefundID0, ?refund_created(Refund0, _, TrxInfo)))
     ] = next_event(InvoiceID, Client),
     [
-        ?payment_ev(PaymentID, ?refund_ev(RefundID0, ?refund_rollback_started(NoFunds)))
-    ] = next_event(InvoiceID, Client),
-    [
-        ?payment_ev(PaymentID, ?refund_ev(RefundID0, ?refund_status_changed(?refund_failed(NoFunds))))
+        ?payment_ev(PaymentID, ?refund_ev(RefundID0, ?refund_status_changed(?refund_failed(Failure))))
     ] = next_event(InvoiceID, Client),
     % top up merchant account
     InvoiceID2 = start_invoice(ShopID, <<"rubberduck">>, make_due_date(10), 42000, C),
@@ -4490,9 +4471,6 @@ payment_with_offsite_preauth_failed(C) ->
             PaymentID,
             ?session_ev(?processed(), ?session_finished(?session_failed({failure, Failure})))
         ),
-        ?payment_ev(PaymentID, ?payment_rollback_started({failure, Failure}))
-    ] = next_event(InvoiceID, 8000, Client),
-    [
         ?payment_ev(PaymentID, ?payment_status_changed(?failed({failure, Failure})))
     ] = next_event(InvoiceID, 8000, Client),
     ok = payproc_errors:match('PaymentFailure', Failure, fun({authorization_failed, _}) -> ok end),
@@ -4527,6 +4505,7 @@ repair_fail_pre_processing_succeeded(C) ->
 
     timeout = next_event(InvoiceID, 2000, Client),
     ok = repair_invoice_with_scenario(InvoiceID, fail_pre_processing, Client),
+
     [
         ?payment_ev(PaymentID, ?payment_status_changed(?failed({failure, _Failure})))
     ] = next_event(InvoiceID, Client).
@@ -4579,9 +4558,6 @@ repair_fail_session_succeeded(C) ->
 
     [
         ?payment_ev(PaymentID, ?session_ev(?processed(), ?session_finished(?session_failed({failure, Failure})))),
-        ?payment_ev(PaymentID, ?payment_rollback_started({failure, Failure}))
-    ] = next_event(InvoiceID, Client),
-    [
         ?payment_ev(PaymentID, ?payment_status_changed(?failed({failure, Failure})))
     ] = next_event(InvoiceID, Client).
 
@@ -4605,6 +4581,7 @@ repair_fail_session_on_pre_processing(C) ->
         repair_invoice_with_scenario(InvoiceID, fail_session, Client)
     ),
     ok = repair_invoice_with_scenario(InvoiceID, fail_pre_processing, Client),
+
     [
         ?payment_ev(PaymentID, ?payment_status_changed(?failed({failure, _Failure})))
     ] = next_event(InvoiceID, Client).
@@ -4657,9 +4634,6 @@ repair_complex_succeeded_second(C) ->
 
     [
         ?payment_ev(PaymentID, ?session_ev(?processed(), ?session_finished(?session_failed({failure, Failure})))),
-        ?payment_ev(PaymentID, ?payment_rollback_started({failure, Failure}))
-    ] = next_event(InvoiceID, Client),
-    [
         ?payment_ev(PaymentID, ?payment_status_changed(?failed({failure, Failure})))
     ] = next_event(InvoiceID, Client).
 
@@ -5193,9 +5167,6 @@ await_payment_process_failure(InvoiceID, PaymentID, Client, Restarts, Target) ->
             PaymentID,
             ?session_ev(Target, ?session_finished(?session_failed(Failure)))
         ),
-        ?payment_ev(PaymentID, ?payment_rollback_started(Failure))
-    ] = next_event(InvoiceID, Client),
-    [
         ?payment_ev(PaymentID, ?payment_status_changed(?failed(Failure)))
     ] = next_event(InvoiceID, Client),
     {failed, PaymentID, Failure}.