diff --git a/src/CONST.js b/src/CONST.js
index cbf24bae5610..b1edc54f3372 100755
--- a/src/CONST.js
+++ b/src/CONST.js
@@ -661,6 +661,8 @@ const CONST = {
             PAY: 'pay',
             CREATE: 'create',
             SPLIT: 'split',
+            DECLINE: 'decline',
+            CANCEL: 'cancel',
         },
         AMOUNT_MAX_LENGTH: 10,
     },
diff --git a/src/components/KYCWall/kycWallPropTypes.js b/src/components/KYCWall/kycWallPropTypes.js
index 5886001c8c92..73e2b550b69f 100644
--- a/src/components/KYCWall/kycWallPropTypes.js
+++ b/src/components/KYCWall/kycWallPropTypes.js
@@ -24,7 +24,7 @@ const propTypes = {
     userWallet: userWalletPropTypes,
 
     /** When the button is opened via an IOU, ID for the chatReport that the IOU is linked to */
-    chatReportID: PropTypes.number,
+    chatReportID: PropTypes.string,
 };
 
 const defaultProps = {
@@ -32,7 +32,7 @@ const defaultProps = {
     popoverPlacement: 'top',
     shouldListenForResize: false,
     isDisabled: false,
-    chatReportID: 0,
+    chatReportID: '',
 };
 
 export {propTypes, defaultProps};
diff --git a/src/components/ReportTransaction.js b/src/components/ReportTransaction.js
index 8e2aaeb165ab..21158e9a94b1 100644
--- a/src/components/ReportTransaction.js
+++ b/src/components/ReportTransaction.js
@@ -1,14 +1,14 @@
 import React, {Component} from 'react';
 import PropTypes from 'prop-types';
-import lodashGet from 'lodash/get';
 import {View} from 'react-native';
-import {withOnyx} from 'react-native-onyx';
-import _ from 'underscore';
-import ONYXKEYS from '../ONYXKEYS';
 import styles from '../styles/styles';
+import CONST from '../CONST';
 import * as IOU from '../libs/actions/IOU';
+import * as ReportActions from '../libs/actions/ReportActions';
 import reportActionPropTypes from '../pages/home/report/reportActionPropTypes';
 import ReportActionItemSingle from '../pages/home/report/ReportActionItemSingle';
+import withLocalize, {withLocalizePropTypes} from './withLocalize';
+import OfflineWithFeedback from './OfflineWithFeedback';
 import Text from './Text';
 import Button from './Button';
 
@@ -27,17 +27,10 @@ const propTypes = {
     /** Can this transaction be rejected? */
     canBeRejected: PropTypes.bool,
 
-    /** Text label for the reject transaction button */
-    rejectButtonLabelText: PropTypes.string.isRequired,
+    /** Type of the reject transaction button */
+    rejectButtonType: PropTypes.oneOf([CONST.IOU.REPORT_ACTION_TYPE.DECLINE, CONST.IOU.REPORT_ACTION_TYPE.CANCEL]).isRequired,
 
-    /* Onyx Props */
-
-    /** List of transactionIDs in process of rejection */
-    /* eslint-disable-next-line react/no-unused-prop-types, react/require-default-props */
-    transactionsBeingRejected: PropTypes.shape({
-        /** IOUTransactionID that's being rejected */
-        transactionID: PropTypes.bool,
-    }),
+    ...withLocalizePropTypes,
 };
 
 const defaultProps = {
@@ -48,62 +41,57 @@ class ReportTransaction extends Component {
     constructor(props) {
         super(props);
 
-        this.rejectTransaction = this.rejectTransaction.bind(this);
-    }
-
-    rejectTransaction() {
-        IOU.rejectTransaction({
-            reportID: this.props.iouReportID,
-            chatReportID: this.props.chatReportID,
-            transactionID: this.props.action.originalMessage.IOUTransactionID,
-            comment: '',
-        });
+        this.cancelMoneyRequest = this.cancelMoneyRequest.bind(this);
     }
 
-    /**
-     * Checks if current IOUTransactionID is being rejected.
-     * @returns {boolean} Returns `true` if current IOUtransactionID is being rejected, else `false`.
-     */
-    isBeingRejected() {
-        const IOUTransactionID = lodashGet(this.props.action, 'originalMessage.IOUTransactionID', '');
-        const transactionsBeingRejected = lodashGet(this.props, 'transactionsBeingRejected', {});
-        if (_.isEmpty(transactionsBeingRejected)) {
-            return false;
-        }
-        return _.has(transactionsBeingRejected, IOUTransactionID);
+    cancelMoneyRequest() {
+        IOU.cancelMoneyRequest(
+            this.props.chatReportID,
+            this.props.iouReportID,
+            this.props.rejectButtonType,
+            this.props.action,
+        );
     }
 
     render() {
         return (
-            <View styles={[styles.mb5]}>
-                <ReportActionItemSingle
-                    action={this.props.action}
-                    wrapperStyles={[styles.reportTransactionWrapper]}
-                >
-                    <Text style={[styles.chatItemMessage]}>
-                        {this.props.action.message[0].text}
-                    </Text>
-                </ReportActionItemSingle>
-                {this.props.canBeRejected && (
-                    <View style={[styles.flexRow, styles.justifyContentStart]}>
-                        <Button
-                            small
-                            text={this.props.rejectButtonLabelText}
-                            style={[styles.mb3, styles.chatItemComposeSecondaryRowOffset]}
-                            onPress={this.rejectTransaction}
-                            isLoading={this.isBeingRejected()}
-                        />
-                    </View>
-                )}
-            </View>
+            <OfflineWithFeedback
+                onClose={() => {
+                    if (this.props.action.pendingAction === CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD) {
+                        ReportActions.deleteOptimisticReportAction(this.props.chatReportID, this.props.action.sequenceNumber);
+                    } else {
+                        ReportActions.clearReportActionErrors(this.props.chatReportID, this.props.action.sequenceNumber);
+                    }
+                }}
+                pendingAction={this.props.action.pendingAction}
+                errors={this.props.action.errors}
+                errorRowStyles={[styles.ml10, styles.mr2]}
+            >
+                <View styles={[styles.mb5]}>
+                    <ReportActionItemSingle
+                        action={this.props.action}
+                        wrapperStyles={[styles.reportTransactionWrapper]}
+                    >
+                        <Text style={[styles.chatItemMessage]}>
+                            {this.props.action.message[0].text}
+                        </Text>
+                    </ReportActionItemSingle>
+                    {this.props.canBeRejected && (
+                        <View style={[styles.flexRow, styles.justifyContentStart]}>
+                            <Button
+                                small
+                                text={this.props.translate(`common.${this.props.rejectButtonType}`)}
+                                style={[styles.mb3, styles.chatItemComposeSecondaryRowOffset]}
+                                onPress={this.cancelMoneyRequest}
+                            />
+                        </View>
+                    )}
+                </View>
+            </OfflineWithFeedback>
         );
     }
 }
 
 ReportTransaction.defaultProps = defaultProps;
 ReportTransaction.propTypes = propTypes;
-export default withOnyx({
-    transactionsBeingRejected: {
-        key: ONYXKEYS.TRANSACTIONS_BEING_REJECTED,
-    },
-})(ReportTransaction);
+export default withLocalize(ReportTransaction);
diff --git a/src/components/SettlementButton.js b/src/components/SettlementButton.js
index 316e356b51e3..8b819ba3c8d4 100644
--- a/src/components/SettlementButton.js
+++ b/src/components/SettlementButton.js
@@ -28,7 +28,7 @@ const propTypes = {
     network: networkPropTypes.isRequired,
 
     /** When the button is opened via an IOU, ID for the chatReport that the IOU is linked to */
-    chatReportID: PropTypes.number,
+    chatReportID: PropTypes.string,
 
     ...withLocalizePropTypes,
 };
@@ -36,7 +36,7 @@ const propTypes = {
 const defaultProps = {
     currency: CONST.CURRENCY.USD,
     shouldShowPaypal: false,
-    chatReportID: 0,
+    chatReportID: '',
 };
 
 class SettlementButton extends React.Component {
diff --git a/src/languages/en.js b/src/languages/en.js
index 86fb9adf4a3f..b67f87172a68 100755
--- a/src/languages/en.js
+++ b/src/languages/en.js
@@ -262,6 +262,7 @@ export default {
             invalidSplit: 'Split amounts do not equal total amount',
             other: 'Unexpected error, please try again later',
             genericCreateFailureMessage: 'Unexpected error requesting money, please try again later',
+            genericCancelFailureMessage: ({type}) => `Unexpected error ${type === 'decline' ? 'declining' : 'cancelling'} the money request, please try again later`,
         },
     },
     notificationPreferences: {
diff --git a/src/languages/es.js b/src/languages/es.js
index 12a5c48029df..30a3eb3cc02d 100644
--- a/src/languages/es.js
+++ b/src/languages/es.js
@@ -262,6 +262,8 @@ export default {
             invalidSplit: 'La suma de las partes no equivale al monto total',
             other: 'Error inesperado, por favor inténtalo más tarde',
             genericCreateFailureMessage: 'Error inesperado solicitando dinero, por favor inténtalo más tarde',
+            genericCancelFailureMessage: ({type}) => `Error inesperado al ${type === 'decline' ? 'rechazar' : 'cancelar'} la solicitud de dinero, por favor inténtalo más tarde`,
+
         },
     },
     notificationPreferences: {
diff --git a/src/libs/ReportUtils.js b/src/libs/ReportUtils.js
index 530f735aed34..4f2128063d76 100644
--- a/src/libs/ReportUtils.js
+++ b/src/libs/ReportUtils.js
@@ -702,18 +702,27 @@ function buildOptimisticIOUReport(ownerEmail, userEmail, total, chatReportID, cu
  */
 function getIOUReportActionMessage(type, total, participants, comment, currency) {
     const amount = NumberFormatUtils.format(preferredLocale, total / 100, {style: 'currency', currency});
-    const displayNames = _.map(participants, participant => getDisplayNameForParticipant(participant.login, true) || participant.login);
-    const from = displayNames.length < 3
+    const displayNames = _.map(participants, participant => getDisplayNameForParticipant(participant.login, true));
+    const who = displayNames.length < 3
         ? displayNames.join(' and ')
         : `${displayNames.slice(0, -1).join(', ')}, and ${_.last(displayNames)}`;
 
     let iouMessage;
     switch (type) {
         case CONST.IOU.REPORT_ACTION_TYPE.CREATE:
-            iouMessage = `Requested ${amount} from ${from}${comment && ` for ${comment}`}`;
+            iouMessage = `Requested ${amount} from ${who}${comment && ` for ${comment}`}`;
             break;
         case CONST.IOU.REPORT_ACTION_TYPE.SPLIT:
-            iouMessage = `Split ${amount} with ${from}${comment && ` for ${comment}`}`;
+            iouMessage = `Split ${amount} with ${who}${comment && ` for ${comment}`}`;
+            break;
+        case CONST.IOU.REPORT_ACTION_TYPE.CANCEL:
+            iouMessage = `Cancelled the ${amount} request${comment && ` for ${comment}`}`;
+            break;
+        case CONST.IOU.REPORT_ACTION_TYPE.DECLINE:
+            iouMessage = `Declined the ${amount} request${comment && ` for ${comment}`}`;
+            break;
+        case CONST.IOU.REPORT_ACTION_TYPE.PAY:
+            iouMessage = `Paid ${amount} to ${who}${comment && ` for ${comment}`}`;
             break;
         default:
             break;
@@ -733,7 +742,7 @@ function getIOUReportActionMessage(type, total, participants, comment, currency)
  * @param {Number} sequenceNumber - Caller is responsible for providing a best guess at what the next sequenceNumber will be.
  * @param {String} type - IOUReportAction type. Can be oneOf(create, decline, cancel, pay, split).
  * @param {Number} amount - IOU amount in cents.
- * @param {String} currency - IOU currency.
+ * @param {String} currency
  * @param {String} comment - User comment for the IOU.
  * @param {Array}  participants - An array with participants details.
  * @param {String} paymentType - Only required if the IOUReportAction type is 'pay'. Can be oneOf(elsewhere, payPal, Expensify).
diff --git a/src/libs/actions/IOU.js b/src/libs/actions/IOU.js
index 25de771e0fe6..d9ac2d1519a1 100644
--- a/src/libs/actions/IOU.js
+++ b/src/libs/actions/IOU.js
@@ -10,14 +10,19 @@ import Navigation from '../Navigation/Navigation';
 import Growl from '../Growl';
 import * as Localize from '../Localize';
 import asyncOpenURL from '../asyncOpenURL';
-import Log from '../Log';
 import * as API from '../API';
 import * as ReportUtils from '../ReportUtils';
 import * as IOUUtils from '../IOUUtils';
 import * as OptionsListUtils from '../OptionsListUtils';
-import * as NumberUtils from '../NumberUtils';
 import DateUtils from '../DateUtils';
 
+let chatReports;
+Onyx.connect({
+    key: ONYXKEYS.COLLECTION.REPORT,
+    waitForCollectionCallback: true,
+    callback: val => chatReports = val,
+});
+
 let iouReports;
 Onyx.connect({
     key: ONYXKEYS.COLLECTION.REPORT_IOUS,
@@ -210,7 +215,7 @@ function requestMoney(report, amount, currency, recipientEmail, participant, com
         comment,
         iouReportID: iouReport.reportID,
         chatReportID: chatReport.reportID,
-        transactionID: NumberUtils.rand64(),
+        transactionID: optimisticReportAction.originalMessage.IOUTransactionID,
         reportActionID: optimisticReportAction.reportActionID,
         clientID: optimisticReportAction.sequenceNumber,
     }, {optimisticData, successData, failureData});
@@ -535,41 +540,102 @@ function splitBillAndOpenReport(participants, currentUserLogin, amount, comment,
 }
 
 /**
- * Reject an iouReport transaction. Declining and cancelling transactions are done via the same Auth command.
+ * Cancels or declines a transaction in iouReport.
+ * Declining and cancelling transactions are done via the same Auth command.
  *
- * @param {Object} params
- * @param {Number} params.reportID
- * @param {Number} params.chatReportID
- * @param {String} params.transactionID
- * @param {String} params.comment
+ * @param {String} chatReportID
+ * @param {String} iouReportID
+ * @param {String} type - cancel|decline
+ * @param {Object} moneyRequestAction - the create IOU reportAction we are cancelling
  */
-function rejectTransaction({
-    reportID, chatReportID, transactionID, comment,
-}) {
-    Onyx.merge(ONYXKEYS.TRANSACTIONS_BEING_REJECTED, {
-        [transactionID]: true,
-    });
-    DeprecatedAPI.RejectTransaction({
-        reportID,
+function cancelMoneyRequest(chatReportID, iouReportID, type, moneyRequestAction) {
+    const chatReport = chatReports[`${ONYXKEYS.COLLECTION.REPORT}${chatReportID}`];
+    const iouReport = iouReports[`${ONYXKEYS.COLLECTION.REPORT_IOUS}${iouReportID}`];
+    const transactionID = moneyRequestAction.originalMessage.IOUTransactionID;
+
+    // Get the amount we are cancelling
+    const amount = moneyRequestAction.originalMessage.amount;
+    const newSequenceNumber = Report.getMaxSequenceNumber(chatReport.reportID) + 1;
+    const optimisticReportAction = ReportUtils.buildOptimisticIOUReportAction(
+        newSequenceNumber,
+        type,
+        amount,
+        moneyRequestAction.originalMessage.currency,
+        moneyRequestAction.originalMessage.comment,
+        [],
+        '',
         transactionID,
-        comment,
-    })
-        .then((response) => {
-            if (response.jsonCode !== 200) {
-                Log.hmmm('Error rejecting transaction', {error: response.error});
-                return;
-            }
+        iouReportID,
+    );
 
-            const chatReport = response.reports[chatReportID];
-            const iouReport = response.reports[reportID];
-            Report.syncChatAndIOUReports(chatReport, iouReport);
-        })
-        .finally(() => {
-            // Setting as null deletes the transactionID
-            Onyx.merge(ONYXKEYS.TRANSACTIONS_BEING_REJECTED, {
-                [transactionID]: null,
-            });
-        });
+    const currentUserEmail = optimisticReportAction.actorEmail;
+    const updatedIOUReport = IOUUtils.updateIOUOwnerAndTotal(iouReport, currentUserEmail, amount, type);
+
+    chatReport.maxSequenceNumber = newSequenceNumber;
+    chatReport.lastReadSequenceNumber = newSequenceNumber;
+    chatReport.lastMessageText = optimisticReportAction.message[0].text;
+    chatReport.lastMessageHtml = optimisticReportAction.message[0].html;
+    chatReport.hasOutstandingIOU = updatedIOUReport.total !== 0;
+
+    const optimisticData = [
+        {
+            onyxMethod: CONST.ONYX.METHOD.MERGE,
+            key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${chatReportID}`,
+            value: {
+                [optimisticReportAction.sequenceNumber]: {
+                    ...optimisticReportAction,
+                    pendingAction: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+                },
+            },
+        },
+        {
+            onyxMethod: CONST.ONYX.METHOD.MERGE,
+            key: `${ONYXKEYS.COLLECTION.REPORT}${chatReportID}`,
+            value: chatReport,
+        },
+        {
+            onyxMethod: CONST.ONYX.METHOD.MERGE,
+            key: `${ONYXKEYS.COLLECTION.REPORT_IOUS}${iouReportID}`,
+            value: updatedIOUReport,
+        },
+    ];
+    const successData = [
+        {
+            onyxMethod: CONST.ONYX.METHOD.MERGE,
+            key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${chatReportID}`,
+            value: {
+                [optimisticReportAction.sequenceNumber]: {
+                    pendingAction: null,
+                },
+            },
+        },
+    ];
+    const failureData = [
+        {
+            onyxMethod: CONST.ONYX.METHOD.MERGE,
+            key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${chatReportID}`,
+            value: {
+                [optimisticReportAction.sequenceNumber]: {
+                    pendingAction: null,
+                    errors: {
+                        [DateUtils.getMicroseconds()]: Localize.translateLocal('iou.error.genericCancelFailureMessage', {type}),
+                    },
+                },
+            },
+        },
+    ];
+
+    API.write('CancelMoneyRequest', {
+        transactionID,
+        iouReportID: updatedIOUReport.reportID,
+        comment: '',
+        clientID: optimisticReportAction.sequenceNumber,
+        cancelMoneyRequestReportActionID: optimisticReportAction.reportActionID,
+        chatReportID,
+        debtorEmail: chatReport.participants[0],
+    }, {optimisticData, successData, failureData});
+
+    Navigation.navigate(ROUTES.getReportRoute(chatReportID));
 }
 
 /**
@@ -655,9 +721,9 @@ function payIOUReport({
 }
 
 export {
+    cancelMoneyRequest,
     splitBill,
     splitBillAndOpenReport,
-    rejectTransaction,
     requestMoney,
     payIOUReport,
     setIOUSelectedCurrency,
diff --git a/src/libs/deprecatedAPI.js b/src/libs/deprecatedAPI.js
index d17d1945b99a..b5dd9d2b4cd0 100644
--- a/src/libs/deprecatedAPI.js
+++ b/src/libs/deprecatedAPI.js
@@ -186,18 +186,6 @@ function PersonalDetails_Update(parameters) {
     return Network.post(commandName, parameters);
 }
 
-/**
- * @param {Object} parameters
- * @param {Number} parameters.reportID
- * @param {String} parameters.transactionID
- * @returns {Promise}
- */
-function RejectTransaction(parameters) {
-    const commandName = 'RejectTransaction';
-    requireParameters(['reportID', 'transactionID'], parameters, commandName);
-    return Network.post(commandName, parameters);
-}
-
 /**
  * @param {Object} parameters
  * @param {String} parameters.email
@@ -367,7 +355,6 @@ export {
     PayWithWallet,
     PersonalDetails_GetForEmails,
     PersonalDetails_Update,
-    RejectTransaction,
     ResendValidateCode,
     SetNameValuePair,
     SetPassword,
diff --git a/src/pages/EnablePayments/walletTermsPropTypes.js b/src/pages/EnablePayments/walletTermsPropTypes.js
index db77ecb36883..c5f19cd3a9f2 100644
--- a/src/pages/EnablePayments/walletTermsPropTypes.js
+++ b/src/pages/EnablePayments/walletTermsPropTypes.js
@@ -6,5 +6,5 @@ export default PropTypes.shape({
     errors: PropTypes.objectOf(PropTypes.string),
 
     /** When the user accepts the Wallet's terms in order to pay an IOU, this is the ID of the chatReport the IOU is linked to */
-    chatReportID: PropTypes.number,
+    chatReportID: PropTypes.string,
 });
diff --git a/src/pages/iou/IOUTransactions.js b/src/pages/iou/IOUTransactions.js
index f57499ffb6ea..af5718303dd8 100644
--- a/src/pages/iou/IOUTransactions.js
+++ b/src/pages/iou/IOUTransactions.js
@@ -4,12 +4,11 @@ import {withOnyx} from 'react-native-onyx';
 import _ from 'underscore';
 import PropTypes from 'prop-types';
 import lodashGet from 'lodash/get';
-import compose from '../../libs/compose';
-import withLocalize, {withLocalizePropTypes} from '../../components/withLocalize';
 import styles from '../../styles/styles';
 import ONYXKEYS from '../../ONYXKEYS';
 import reportActionPropTypes from '../home/report/reportActionPropTypes';
 import ReportTransaction from '../../components/ReportTransaction';
+import CONST from '../../CONST';
 
 const propTypes = {
     /** Actions from the ChatReport */
@@ -26,8 +25,6 @@ const propTypes = {
 
     /** Is the associated IOU settled? */
     isIOUSettled: PropTypes.bool,
-
-    ...withLocalizePropTypes,
 };
 
 const defaultProps = {
@@ -92,9 +89,7 @@ class IOUTransactions extends Component {
                             action={reportAction}
                             key={reportAction.sequenceNumber}
                             canBeRejected={canBeRejected}
-                            rejectButtonLabelText={isCurrentUserTransactionCreator
-                                ? this.props.translate('common.cancel')
-                                : this.props.translate('common.decline')}
+                            rejectButtonType={isCurrentUserTransactionCreator ? CONST.IOU.REPORT_ACTION_TYPE.CANCEL : CONST.IOU.REPORT_ACTION_TYPE.DECLINE}
                         />
                     );
                 })}
@@ -105,12 +100,9 @@ class IOUTransactions extends Component {
 
 IOUTransactions.defaultProps = defaultProps;
 IOUTransactions.propTypes = propTypes;
-export default compose(
-    withLocalize,
-    withOnyx({
-        reportActions: {
-            key: ({chatReportID}) => `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${chatReportID}`,
-            canEvict: false,
-        },
-    }),
-)(IOUTransactions);
+export default withOnyx({
+    reportActions: {
+        key: ({chatReportID}) => `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${chatReportID}`,
+        canEvict: false,
+    },
+})(IOUTransactions);