diff --git a/eclair-core/src/main/scala/fr/acinq/eclair/payment/Relayer.scala b/eclair-core/src/main/scala/fr/acinq/eclair/payment/Relayer.scala
index dd31156e72..fb9c0fea56 100644
--- a/eclair-core/src/main/scala/fr/acinq/eclair/payment/Relayer.scala
+++ b/eclair-core/src/main/scala/fr/acinq/eclair/payment/Relayer.scala
@@ -119,11 +119,15 @@ class Relayer(nodeParams: NodeParams, register: ActorRef, paymentHandler: ActorR
               log.info(s"forwarding htlc #${add.id} paymentHash=${add.paymentHash} from channelId=${add.channelId} to shortChannelId=$selectedShortChannelId")
               register ! Register.ForwardShortId(selectedShortChannelId, cmdAdd)
           }
-        case Left(badOnion) =>
+        case Left(badOnion: BadOnion) =>
           log.warning(s"couldn't parse onion: reason=${badOnion.message}")
           val cmdFail = CMD_FAIL_MALFORMED_HTLC(add.id, badOnion.onionHash, FailureMessageCodecs.failureCode(badOnion), commit = true)
           log.info(s"rejecting htlc #${add.id} paymentHash=${add.paymentHash} from channelId=${add.channelId} reason=malformed onionHash=${cmdFail.onionHash} failureCode=${cmdFail.failureCode}")
           commandBuffer ! CommandBuffer.CommandSend(add.channelId, add.id, cmdFail)
+        case Left(failure) =>
+          log.warning(s"couldn't process onion: reason=${failure.message}")
+          val cmdFail = CMD_FAIL_HTLC(add.id, Right(failure), commit = true)
+          commandBuffer ! CommandBuffer.CommandSend(add.channelId, add.id, cmdFail)
       }
 
     case Status.Failure(Register.ForwardShortIdFailure(Register.ForwardShortId(shortChannelId, CMD_ADD_HTLC(_, _, _, _, Right(add), _, _)))) =>
@@ -229,12 +233,12 @@ object Relayer extends Logging {
    * @param privateKey this node's private key
    * @return the payload for the next hop or an error.
    */
-  def decryptPacket(add: UpdateAddHtlc, privateKey: PrivateKey, features: ByteVector): Either[BadOnion, NextPayload] =
+  def decryptPacket(add: UpdateAddHtlc, privateKey: PrivateKey, features: ByteVector): Either[FailureMessage, NextPayload] =
     Sphinx.PaymentPacket.peel(privateKey, add.paymentHash, add.onionRoutingPacket) match {
       case Right(p@Sphinx.DecryptedPacket(payload, nextPacket, _)) =>
         OnionCodecs.perHopPayloadCodec.decode(payload.bits) match {
           case Attempt.Successful(DecodeResult(OnionPerHopPayload(Left(_)), _)) if !Features.hasVariableLengthOnion(features) =>
-            Left(InvalidOnionPayload(Sphinx.PaymentPacket.hash(add.onionRoutingPacket)))
+            Left(InvalidRealm)
           case Attempt.Successful(DecodeResult(perHopPayload, remainder)) =>
             if (remainder.nonEmpty) {
               logger.warn(s"${remainder.length} bits remaining after per-hop payload decoding: there might be an issue with the onion codec")
diff --git a/eclair-core/src/main/scala/fr/acinq/eclair/wire/FailureMessage.scala b/eclair-core/src/main/scala/fr/acinq/eclair/wire/FailureMessage.scala
index 63a9dd6113..9b342d3582 100644
--- a/eclair-core/src/main/scala/fr/acinq/eclair/wire/FailureMessage.scala
+++ b/eclair-core/src/main/scala/fr/acinq/eclair/wire/FailureMessage.scala
@@ -43,7 +43,6 @@ case object RequiredNodeFeatureMissing extends Perm with Node { def message = "p
 case class InvalidOnionVersion(onionHash: ByteVector32) extends BadOnion with Perm { def message = "onion version was not understood by the processing node" }
 case class InvalidOnionHmac(onionHash: ByteVector32) extends BadOnion with Perm { def message = "onion HMAC was incorrect when it reached the processing node" }
 case class InvalidOnionKey(onionHash: ByteVector32) extends BadOnion with Perm { def message = "ephemeral key was unparsable by the processing node" }
-case class InvalidOnionPayload(onionHash: ByteVector32) extends BadOnion with Perm { def message = "onion per-hop payload could not be parsed" }
 case class TemporaryChannelFailure(update: ChannelUpdate) extends Update { def message = s"channel ${update.shortChannelId} is currently unavailable" }
 case object PermanentChannelFailure extends Perm { def message = "channel is permanently unavailable" }
 case object RequiredChannelFeatureMissing extends Perm { def message = "channel requires features not present in the onion" }
@@ -59,6 +58,7 @@ case object FinalExpiryTooSoon extends FailureMessage { def message = "payment e
 case class FinalIncorrectCltvExpiry(expiry: CltvExpiry) extends FailureMessage { def message = "payment expiry doesn't match the value in the onion" }
 case class FinalIncorrectHtlcAmount(amount: MilliSatoshi) extends FailureMessage { def message = "payment amount is incorrect in the final htlc" }
 case object ExpiryTooFar extends FailureMessage { def message = "payment expiry is too far in the future" }
+case class InvalidOnionPayload(onionHash: ByteVector32) extends Perm { def message = "onion per-hop payload is invalid" }
 // @formatter:on
 
 object FailureMessageCodecs {
@@ -78,7 +78,6 @@ object FailureMessageCodecs {
     .typecase(NODE | 2, provide(TemporaryNodeFailure))
     .typecase(PERM | 2, provide(PermanentNodeFailure))
     .typecase(PERM | NODE | 3, provide(RequiredNodeFeatureMissing))
-    .typecase(BADONION | PERM, sha256.as[InvalidOnionPayload])
     .typecase(BADONION | PERM | 4, sha256.as[InvalidOnionVersion])
     .typecase(BADONION | PERM | 5, sha256.as[InvalidOnionHmac])
     .typecase(BADONION | PERM | 6, sha256.as[InvalidOnionKey])
@@ -97,6 +96,7 @@ object FailureMessageCodecs {
     .typecase(18, ("expiry" | cltvExpiry).as[FinalIncorrectCltvExpiry])
     .typecase(19, ("amountMsat" | millisatoshi).as[FinalIncorrectHtlcAmount])
     .typecase(21, provide(ExpiryTooFar))
+    .typecase(PERM, sha256.as[InvalidOnionPayload])
 
   /**
    * Return the failure code for a given failure message. This method actually encodes the failure message, which is a
diff --git a/eclair-core/src/test/scala/fr/acinq/eclair/payment/RelayerSpec.scala b/eclair-core/src/test/scala/fr/acinq/eclair/payment/RelayerSpec.scala
index 8f7db6047d..dd04104112 100644
--- a/eclair-core/src/test/scala/fr/acinq/eclair/payment/RelayerSpec.scala
+++ b/eclair-core/src/test/scala/fr/acinq/eclair/payment/RelayerSpec.scala
@@ -308,11 +308,7 @@ class RelayerSpec extends TestkitBaseClass {
       val add_ab = UpdateAddHtlc(channelId_ab, 123456, amount_ab, paymentHash, expiry_ab, onion)
       sender.send(relayer, ForwardAdd(add_ab))
 
-      val fail = register.expectMsgType[Register.Forward[CMD_FAIL_MALFORMED_HTLC]].message
-      assert(fail.id === add_ab.id)
-      assert(fail.onionHash == Sphinx.PaymentPacket.hash(add_ab.onionRoutingPacket))
-      assert(fail.failureCode === (FailureMessageCodecs.BADONION | FailureMessageCodecs.PERM))
-
+      register.expectMsg(Register.Forward(channelId_ab, CMD_FAIL_HTLC(add_ab.id, Right(InvalidOnionPayload(Sphinx.PaymentPacket.hash(add_ab.onionRoutingPacket))), commit = true)))
       register.expectNoMsg(100 millis)
       paymentHandler.expectNoMsg(100 millis)
     }
@@ -333,11 +329,7 @@ class RelayerSpec extends TestkitBaseClass {
     val add_ab = UpdateAddHtlc(channelId_ab, 123456, amount_ab, paymentHash, expiry_ab, onion)
     sender.send(relayer, ForwardAdd(add_ab))
 
-    val fail = register.expectMsgType[Register.Forward[CMD_FAIL_MALFORMED_HTLC]].message
-    assert(fail.id === add_ab.id)
-    assert(fail.onionHash == Sphinx.PaymentPacket.hash(add_ab.onionRoutingPacket))
-    assert(fail.failureCode === (FailureMessageCodecs.BADONION | FailureMessageCodecs.PERM))
-
+    register.expectMsg(Register.Forward(channelId_ab, CMD_FAIL_HTLC(add_ab.id, Right(InvalidRealm), commit = true)))
     register.expectNoMsg(100 millis)
     paymentHandler.expectNoMsg(100 millis)
   }
@@ -460,11 +452,7 @@ class RelayerSpec extends TestkitBaseClass {
       val add_ab = UpdateAddHtlc(channelId_ab, 123456, amount_ab, paymentHash, expiry_ab, onion)
       sender.send(relayer, ForwardAdd(add_ab))
 
-      val fail = register.expectMsgType[Register.Forward[CMD_FAIL_MALFORMED_HTLC]].message
-      assert(fail.id === add_ab.id)
-      assert(fail.onionHash == Sphinx.PaymentPacket.hash(add_ab.onionRoutingPacket))
-      assert(fail.failureCode === (FailureMessageCodecs.BADONION | FailureMessageCodecs.PERM))
-
+      register.expectMsg(Register.Forward(channelId_ab, CMD_FAIL_HTLC(add_ab.id, Right(InvalidOnionPayload(Sphinx.PaymentPacket.hash(add_ab.onionRoutingPacket))), commit = true)))
       register.expectNoMsg(100 millis)
       paymentHandler.expectNoMsg(100 millis)
     }
diff --git a/eclair-core/src/test/scala/fr/acinq/eclair/wire/FailureMessageCodecsSpec.scala b/eclair-core/src/test/scala/fr/acinq/eclair/wire/FailureMessageCodecsSpec.scala
index 615a7f1adf..445e55ec32 100644
--- a/eclair-core/src/test/scala/fr/acinq/eclair/wire/FailureMessageCodecsSpec.scala
+++ b/eclair-core/src/test/scala/fr/acinq/eclair/wire/FailureMessageCodecsSpec.scala
@@ -44,10 +44,10 @@ class FailureMessageCodecsSpec extends FunSuite {
   test("encode/decode all channel messages") {
     val msgs: List[FailureMessage] =
       InvalidRealm :: TemporaryNodeFailure :: PermanentNodeFailure :: RequiredNodeFeatureMissing ::
-        InvalidOnionVersion(randomBytes32) :: InvalidOnionHmac(randomBytes32) :: InvalidOnionKey(randomBytes32) :: InvalidOnionPayload(randomBytes32) ::
+        InvalidOnionVersion(randomBytes32) :: InvalidOnionHmac(randomBytes32) :: InvalidOnionKey(randomBytes32) ::
         TemporaryChannelFailure(channelUpdate) :: PermanentChannelFailure :: RequiredChannelFeatureMissing :: UnknownNextPeer ::
         AmountBelowMinimum(123456 msat, channelUpdate) :: FeeInsufficient(546463 msat, channelUpdate) :: IncorrectCltvExpiry(CltvExpiry(1211), channelUpdate) :: ExpiryTooSoon(channelUpdate) ::
-        IncorrectOrUnknownPaymentDetails(123456 msat) :: IncorrectPaymentAmount :: FinalExpiryTooSoon :: FinalIncorrectCltvExpiry(CltvExpiry(1234)) :: ChannelDisabled(0, 1, channelUpdate) :: ExpiryTooFar :: Nil
+        IncorrectOrUnknownPaymentDetails(123456 msat) :: IncorrectPaymentAmount :: FinalExpiryTooSoon :: FinalIncorrectCltvExpiry(CltvExpiry(1234)) :: ChannelDisabled(0, 1, channelUpdate) :: ExpiryTooFar :: InvalidOnionPayload(randomBytes32) :: Nil
 
     msgs.foreach {
       msg => {
@@ -62,8 +62,7 @@ class FailureMessageCodecsSpec extends FunSuite {
     val msgs = Map(
       (BADONION | PERM | 4) -> InvalidOnionVersion(randomBytes32),
       (BADONION | PERM | 5) -> InvalidOnionHmac(randomBytes32),
-      (BADONION | PERM | 6) -> InvalidOnionKey(randomBytes32),
-      (BADONION | PERM) -> InvalidOnionPayload(randomBytes32)
+      (BADONION | PERM | 6) -> InvalidOnionKey(randomBytes32)
     )
 
     for ((code, message) <- msgs) {