diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index 943a8883ac1f..b5dcac9bb08b 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -7654,7 +7654,7 @@ function cancelPayment(expenseReport: OnyxEntry<OnyxTypes.Report>, chatReport: O
     }
 
     if (chatReport?.reportID) {
-        failureData.push({
+        optimisticData.push({
             onyxMethod: Onyx.METHOD.MERGE,
             key: `${ONYXKEYS.COLLECTION.REPORT}${chatReport.reportID}`,
             value: {
@@ -7662,6 +7662,14 @@ function cancelPayment(expenseReport: OnyxEntry<OnyxTypes.Report>, chatReport: O
                 iouReportID: expenseReport.reportID,
             },
         });
+        failureData.push({
+            onyxMethod: Onyx.METHOD.MERGE,
+            key: `${ONYXKEYS.COLLECTION.REPORT}${chatReport.reportID}`,
+            value: {
+                hasOutstandingChildRequest: chatReport.hasOutstandingChildRequest,
+                iouReportID: chatReport.iouReportID,
+            },
+        });
     }
     failureData.push({
         onyxMethod: Onyx.METHOD.MERGE,