diff --git a/contrib/gana b/contrib/gana
index f603a7959..df1d19891 160000
--- a/contrib/gana
+++ b/contrib/gana
@@ -1 +1 @@
-Subproject commit f603a795963748040e41693daceae343b3a972ed
+Subproject commit df1d198918cbdd03c18723d818979c8d09f8f231
diff --git a/src/auditor/taler-helper-auditor-purses.c b/src/auditor/taler-helper-auditor-purses.c
index 0136a9ec3..13327ccba 100644
--- a/src/auditor/taler-helper-auditor-purses.c
+++ b/src/auditor/taler-helper-auditor-purses.c
@@ -308,6 +308,14 @@ struct PurseSummary
    */
   bool had_pi;
 
+  /**
+   * Was the purse deleted?  FIXME: Not yet handled (do we need to? purse
+   * might just appear as expired eventually; but in the meantime, exchange
+   * may seem to have refunded the coins for no good reason...), also we do
+   * not yet check the deletion signature.
+   */
+  bool purse_deleted;
+
 };
 
 
@@ -407,7 +415,8 @@ setup_purse (struct PurseContext *pc,
                                     &ps->total_value,
                                     &ps->exchange_balance,
                                     &ps->h_contract_terms,
-                                    &ps->merge_timestamp);
+                                    &ps->merge_timestamp,
+                                    &ps->purse_deleted);
   if (0 >= qs)
   {
     GNUNET_free (ps);
diff --git a/src/exchange/exchange.conf b/src/exchange/exchange.conf
index d662cdd0e..758e77c97 100644
--- a/src/exchange/exchange.conf
+++ b/src/exchange/exchange.conf
@@ -113,32 +113,3 @@ PRIVACY_DIR = $DATADIR/exchange/pp/
 
 # Etag / filename for the privacy policy.
 PRIVACY_ETAG = pp-v0
-
-# Set to NONE to disable KYC checks.
-# Set to "OAUTH2" to use OAuth 2.0 for KYC authorization.
-KYC_MODE = NONE
-
-# Balance threshold above which wallets are told
-# to undergo a KYC check at the exchange. Optional,
-# if not given there is no limit.
-# KYC_WALLET_BALANCE_LIMIT = CURRENCY:150
-#
-# KYC_WITHDRAW_PERIOD = 1 month
-
-[exchange-kyc-oauth2]
-
-# URL of the OAuth endpoint for KYC checks
-# KYC_OAUTH2_URL =
-
-# URL of the "information" endpoint for KYC checks
-# KYC_INFO_URL =
-
-# KYC Oauth client ID.
-# KYC_OAUTH2_CLIENT_ID =
-
-# KYC Client secret used to obtain access tokens.
-# KYC_OAUTH2_CLIENT_SECRET =
-
-# Where to redirect clients after successful
-# authorization?
-# KYC_OAUTH2_POST_URL = https://bank.com/
diff --git a/src/exchange/taler-exchange-httpd.c b/src/exchange/taler-exchange-httpd.c
index 4b64dfd54..76b388896 100644
--- a/src/exchange/taler-exchange-httpd.c
+++ b/src/exchange/taler-exchange-httpd.c
@@ -115,11 +115,6 @@ struct TALER_AgeRestrictionConfig TEH_age_restriction_config = {0};
  */
 static struct MHD_Daemon *mhd;
 
-/**
- * Our KYC configuration.
- */
-struct TEH_KycOptions TEH_kyc_config;
-
 /**
  * How long is caching /keys allowed at most? (global)
  */
@@ -732,12 +727,16 @@ proceed_with_handler (struct TEH_RequestContext *rc,
 
     /* Above logic ensures that 'root' is exactly non-NULL for POST operations,
        so we test for 'root' to decide which handler to invoke. */
-    if (NULL != root)
+    if (0 == strcasecmp (rh->method,
+                         MHD_HTTP_METHOD_POST))
       ret = rh->handler.post (rc,
                               root,
                               args);
-    else /* We also only have "POST" or "GET" in the API for at this point
-      (OPTIONS/HEAD are taken care of earlier) */
+    else if (0 == strcasecmp (rh->method,
+                              MHD_HTTP_METHOD_DELETE))
+      ret = rh->handler.delete (rc,
+                                args);
+    else /* Only GET left */
       ret = rh->handler.get (rc,
                              args);
   }
@@ -975,7 +974,7 @@ handle_post_management (struct TEH_RequestContext *rc,
 
 
 /**
- * Handle a get "/management" request.
+ * Handle a GET "/management" request.
  *
  * @param rc request context
  * @param args array of additional options (must be [0] == "keys")
@@ -1225,7 +1224,7 @@ handle_mhd_request (void *cls,
       .url = "purses",
       .method = MHD_HTTP_METHOD_POST,
       .handler.post = &handle_post_purses,
-      .nargs = 2 // ??
+      .nargs = 2
     },
     /* Getting purse status */
     {
@@ -1234,6 +1233,13 @@ handle_mhd_request (void *cls,
       .handler.get = &TEH_handler_purses_get,
       .nargs = 2
     },
+    /* Deleting purse */
+    {
+      .url = "purses",
+      .method = MHD_HTTP_METHOD_DELETE,
+      .handler.delete = &TEH_handler_purses_delete,
+      .nargs = 1
+    },
     /* Getting contracts */
     {
       .url = "contracts",
@@ -1525,185 +1531,6 @@ handle_mhd_request (void *cls,
 }
 
 
-/**
- * Load general KYC configuration parameters for the exchange server into the
- * #TEH_kyc_config variable.
- *
- * @return #GNUNET_OK on success
- */
-static enum GNUNET_GenericReturnValue
-parse_kyc_settings (void)
-{
-  if (GNUNET_OK !=
-      GNUNET_CONFIGURATION_get_value_time (TEH_cfg,
-                                           "exchange",
-                                           "KYC_WITHDRAW_PERIOD",
-                                           &TEH_kyc_config.withdraw_period))
-  {
-    GNUNET_log_config_invalid (GNUNET_ERROR_TYPE_ERROR,
-                               "exchange",
-                               "KYC_WITHDRAW_PERIOD",
-                               "valid relative time expected");
-    return GNUNET_SYSERR;
-  }
-  if (GNUNET_TIME_relative_is_zero (TEH_kyc_config.withdraw_period))
-    return GNUNET_OK;
-  if (GNUNET_OK !=
-      TALER_config_get_amount (TEH_cfg,
-                               "exchange",
-                               "KYC_WITHDRAW_LIMIT",
-                               &TEH_kyc_config.withdraw_limit))
-    return GNUNET_SYSERR;
-  if (0 != strcasecmp (TEH_kyc_config.withdraw_limit.currency,
-                       TEH_currency))
-  {
-    GNUNET_log_config_invalid (GNUNET_ERROR_TYPE_ERROR,
-                               "exchange",
-                               "KYC_WITHDRAW_LIMIT",
-                               "currency mismatch");
-    return GNUNET_SYSERR;
-  }
-  return GNUNET_OK;
-}
-
-
-/**
- * Load OAuth2.0 configuration parameters for the exchange server into the
- * #TEH_kyc_config variable.
- *
- * @return #GNUNET_OK on success
- */
-static enum GNUNET_GenericReturnValue
-parse_kyc_oauth_cfg (void)
-{
-  char *s;
-
-  if (GNUNET_OK !=
-      GNUNET_CONFIGURATION_get_value_string (TEH_cfg,
-                                             "exchange-kyc-oauth2",
-                                             "KYC_OAUTH2_AUTH_URL",
-                                             &s))
-  {
-    GNUNET_log_config_missing (GNUNET_ERROR_TYPE_ERROR,
-                               "exchange-kyc-oauth2",
-                               "KYC_OAUTH2_AUTH_URL");
-    return GNUNET_SYSERR;
-  }
-  if ( (! TALER_url_valid_charset (s)) ||
-       ( (0 != strncasecmp (s,
-                            "http://",
-                            strlen ("http://"))) &&
-         (0 != strncasecmp (s,
-                            "https://",
-                            strlen ("https://"))) ) )
-  {
-    GNUNET_log_config_invalid (GNUNET_ERROR_TYPE_ERROR,
-                               "exchange-kyc-oauth2",
-                               "KYC_OAUTH2_AUTH_URL",
-                               "not a valid URL");
-    GNUNET_free (s);
-    return GNUNET_SYSERR;
-  }
-  TEH_kyc_config.details.oauth2.auth_url = s;
-
-  if (GNUNET_OK !=
-      GNUNET_CONFIGURATION_get_value_string (TEH_cfg,
-                                             "exchange-kyc-oauth2",
-                                             "KYC_OAUTH2_LOGIN_URL",
-                                             &s))
-  {
-    GNUNET_log_config_missing (GNUNET_ERROR_TYPE_ERROR,
-                               "exchange-kyc-oauth2",
-                               "KYC_OAUTH2_LOGIN_URL");
-    return GNUNET_SYSERR;
-  }
-  if ( (! TALER_url_valid_charset (s)) ||
-       ( (0 != strncasecmp (s,
-                            "http://",
-                            strlen ("http://"))) &&
-         (0 != strncasecmp (s,
-                            "https://",
-                            strlen ("https://"))) ) )
-  {
-    GNUNET_log_config_invalid (GNUNET_ERROR_TYPE_ERROR,
-                               "exchange-kyc-oauth2",
-                               "KYC_OAUTH2_LOGIN_URL",
-                               "not a valid URL");
-    GNUNET_free (s);
-    return GNUNET_SYSERR;
-  }
-  TEH_kyc_config.details.oauth2.login_url = s;
-
-  if (GNUNET_OK !=
-      GNUNET_CONFIGURATION_get_value_string (TEH_cfg,
-                                             "exchange-kyc-oauth2",
-                                             "KYC_INFO_URL",
-                                             &s))
-  {
-    GNUNET_log_config_missing (GNUNET_ERROR_TYPE_ERROR,
-                               "exchange-kyc-oauth2",
-                               "KYC_INFO_URL");
-    return GNUNET_SYSERR;
-  }
-  if ( (! TALER_url_valid_charset (s)) ||
-       ( (0 != strncasecmp (s,
-                            "http://",
-                            strlen ("http://"))) &&
-         (0 != strncasecmp (s,
-                            "https://",
-                            strlen ("https://"))) ) )
-  {
-    GNUNET_log_config_invalid (GNUNET_ERROR_TYPE_ERROR,
-                               "exchange-kyc-oauth2",
-                               "KYC_INFO_URL",
-                               "not a valid URL");
-    GNUNET_free (s);
-    return GNUNET_SYSERR;
-  }
-  TEH_kyc_config.details.oauth2.info_url = s;
-
-  if (GNUNET_OK !=
-      GNUNET_CONFIGURATION_get_value_string (TEH_cfg,
-                                             "exchange-kyc-oauth2",
-                                             "KYC_OAUTH2_CLIENT_ID",
-                                             &s))
-  {
-    GNUNET_log_config_missing (GNUNET_ERROR_TYPE_ERROR,
-                               "exchange-kyc-oauth2",
-                               "KYC_OAUTH2_CLIENT_ID");
-    return GNUNET_SYSERR;
-  }
-  TEH_kyc_config.details.oauth2.client_id = s;
-
-  if (GNUNET_OK !=
-      GNUNET_CONFIGURATION_get_value_string (TEH_cfg,
-                                             "exchange-kyc-oauth2",
-                                             "KYC_OAUTH2_CLIENT_SECRET",
-                                             &s))
-  {
-    GNUNET_log_config_missing (GNUNET_ERROR_TYPE_ERROR,
-                               "exchange-kyc-oauth2",
-                               "KYC_OAUTH2_CLIENT_SECRET");
-    return GNUNET_SYSERR;
-  }
-  TEH_kyc_config.details.oauth2.client_secret = s;
-
-  if (GNUNET_OK !=
-      GNUNET_CONFIGURATION_get_value_string (TEH_cfg,
-                                             "exchange-kyc-oauth2",
-                                             "KYC_OAUTH2_POST_URL",
-                                             &s))
-  {
-    GNUNET_log_config_missing (GNUNET_ERROR_TYPE_ERROR,
-                               "exchange-kyc-oauth2",
-                               "KYC_OAUTH2_POST_URL");
-    return GNUNET_SYSERR;
-  }
-  TEH_kyc_config.details.oauth2.post_kyc_redirect_url = s;
-  return GNUNET_OK;
-}
-
-
 /**
  * Load configuration parameters for the exchange
  * server into the corresponding global variables.
@@ -1718,47 +1545,6 @@ exchange_serve_process_config (void)
   {
     return GNUNET_SYSERR;
   }
-  {
-    char *kyc_mode;
-
-    if (GNUNET_OK !=
-        GNUNET_CONFIGURATION_get_value_string (TEH_cfg,
-                                               "exchange",
-                                               "KYC_MODE",
-                                               &kyc_mode))
-    {
-      GNUNET_log_config_missing (GNUNET_ERROR_TYPE_ERROR,
-                                 "exchange",
-                                 "KYC_MODE");
-      return GNUNET_SYSERR;
-    }
-    if (0 == strcasecmp (kyc_mode,
-                         "NONE"))
-    {
-      TEH_kyc_config.mode = TEH_KYC_NONE;
-    }
-    else if (0 == strcasecmp (kyc_mode,
-                              "OAUTH2"))
-    {
-      TEH_kyc_config.mode = TEH_KYC_OAUTH2;
-      if (GNUNET_OK !=
-          parse_kyc_oauth_cfg ())
-      {
-        GNUNET_free (kyc_mode);
-        return GNUNET_SYSERR;
-      }
-    }
-    else
-    {
-      GNUNET_log_config_invalid (GNUNET_ERROR_TYPE_ERROR,
-                                 "exchange",
-                                 "KYC_MODE",
-                                 "Must be 'NONE' or 'OAUTH2'");
-      GNUNET_free (kyc_mode);
-      return GNUNET_SYSERR;
-    }
-    GNUNET_free (kyc_mode);
-  }
   if (GNUNET_OK !=
       GNUNET_CONFIGURATION_get_value_number (TEH_cfg,
                                              "exchange",
@@ -1823,35 +1609,6 @@ exchange_serve_process_config (void)
     return GNUNET_SYSERR;
   }
 
-  if (TEH_KYC_NONE != TEH_kyc_config.mode)
-  {
-    if (GNUNET_YES ==
-        GNUNET_CONFIGURATION_have_value (TEH_cfg,
-                                         "exchange",
-                                         "KYC_WALLET_BALANCE_LIMIT"))
-    {
-      if ( (GNUNET_OK !=
-            TALER_config_get_amount (TEH_cfg,
-                                     "exchange",
-                                     "KYC_WALLET_BALANCE_LIMIT",
-                                     &TEH_kyc_config.wallet_balance_limit)) ||
-           (0 != strcasecmp (TEH_currency,
-                             TEH_kyc_config.wallet_balance_limit.currency)) )
-      {
-        GNUNET_log_config_invalid (GNUNET_ERROR_TYPE_ERROR,
-                                   "exchange",
-                                   "KYC_WALLET_BALANCE_LIMIT",
-                                   "valid amount expected");
-        return GNUNET_SYSERR;
-      }
-    }
-    else
-    {
-      memset (&TEH_kyc_config.wallet_balance_limit,
-              0,
-              sizeof (TEH_kyc_config.wallet_balance_limit));
-    }
-  }
   {
     char *master_public_key_str;
 
@@ -1882,12 +1639,6 @@ exchange_serve_process_config (void)
     }
     GNUNET_free (master_public_key_str);
   }
-  if (TEH_KYC_NONE != TEH_kyc_config.mode)
-  {
-    if (GNUNET_OK !=
-        parse_kyc_settings ())
-      return GNUNET_SYSERR;
-  }
   GNUNET_log (GNUNET_ERROR_TYPE_INFO,
               "Launching exchange with public key `%s'...\n",
               GNUNET_p2s (&TEH_master_public_key.eddsa_pub));
diff --git a/src/exchange/taler-exchange-httpd.h b/src/exchange/taler-exchange-httpd.h
index 67b8e75d0..2be26f14d 100644
--- a/src/exchange/taler-exchange-httpd.h
+++ b/src/exchange/taler-exchange-httpd.h
@@ -31,111 +31,6 @@
 #include <gnunet/gnunet_mhd_compat.h>
 
 
-/* ************* NOTE: OLD KYC logic,***********
-   new logic is in taler-exchange-httpd_kyc.h!
-   ********************************************* */
-
-/**
- * Enumeration for our KYC modes.
- */
-enum TEH_KycMode
-{
-  /**
-   * KYC is disabled.
-   */
-  TEH_KYC_NONE = 0,
-
-  /**
-   * We use Oauth2.0.
-   */
-  TEH_KYC_OAUTH2 = 1
-};
-
-
-/**
- * Structure describing our KYC configuration.
- */
-struct TEH_KycOptions
-{
-  /**
-   * What KYC mode are we in?
-   */
-  enum TEH_KycMode mode;
-
-  /**
-   * Maximum amount that can be withdrawn in @e withdraw_period without
-   * needing KYC.
-   * Only valid if @e mode is not #TEH_KYC_NONE and
-   * if @e withdraw_period is non-zero.
-   */
-  struct TALER_Amount withdraw_limit;
-
-  /**
-   * Maximum balance a wallet can hold without
-   * needing KYC.
-   * Only valid if @e mode is not #TEH_KYC_NONE and
-   * if the amount specified is valid.
-   */
-  struct TALER_Amount wallet_balance_limit;
-
-  /**
-   * Time period over which @e withdraw_limit applies.
-   * Only valid if @e mode is not #TEH_KYC_NONE.
-   */
-  struct GNUNET_TIME_Relative withdraw_period;
-
-  /**
-   * Details depending on @e mode.
-   */
-  union
-  {
-
-    /**
-     * Configuration details if @e mode is #TEH_KYC_OAUTH2.
-     */
-    struct
-    {
-
-      /**
-       * URL of the OAuth2.0 endpoint for KYC checks.
-       * (token/auth)
-       */
-      char *auth_url;
-
-      /**
-       * URL of the OAuth2.0 endpoint for KYC checks.
-       */
-      char *login_url;
-
-      /**
-       * URL of the user info access endpoint.
-       */
-      char *info_url;
-
-      /**
-       * Our client ID for OAuth2.0.
-       */
-      char *client_id;
-
-      /**
-       * Our client secret for OAuth2.0.
-       */
-      char *client_secret;
-
-      /**
-       * Where to redirect clients after the
-       * Web-based KYC process is done?
-       */
-      char *post_kyc_redirect_url;
-
-    } oauth2;
-
-  } details;
-};
-
-
-extern struct TEH_KycOptions TEH_kyc_config;
-
 /**
  * How long is caching /keys allowed at most?
  */
@@ -301,11 +196,10 @@ struct TEH_RequestHandler
   union
   {
     /**
-     * Function to call to handle a GET requests (and those
+     * Function to call to handle GET requests (and those
      * with @e method NULL).
      *
      * @param rc context for the request
-     * @param mime_type the @e mime_type for the reply (hint, can be NULL)
      * @param args array of arguments, needs to be of length @e args_expected
      * @return MHD result code
      */
@@ -315,7 +209,7 @@ struct TEH_RequestHandler
 
 
     /**
-     * Function to call to handle a POST request.
+     * Function to call to handle POST requests.
      *
      * @param rc context for the request
      * @param json uploaded JSON data
@@ -327,6 +221,17 @@ struct TEH_RequestHandler
             const json_t *root,
             const char *const args[]);
 
+    /**
+     * Function to call to handle DELETE requests.
+     *
+     * @param rc context for the request
+     * @param args array of arguments, needs to be of length @e args_expected
+     * @return MHD result code
+     */
+    MHD_RESULT
+      (*delete)(struct TEH_RequestContext *rc,
+                const char *const args[]);
+
   } handler;
 
   /**
diff --git a/src/exchange/taler-exchange-httpd_purses_delete.c b/src/exchange/taler-exchange-httpd_purses_delete.c
index 34ab11b51..58cc78250 100644
--- a/src/exchange/taler-exchange-httpd_purses_delete.c
+++ b/src/exchange/taler-exchange-httpd_purses_delete.c
@@ -24,6 +24,7 @@
 #include <gnunet/gnunet_json_lib.h>
 #include <jansson.h>
 #include <microhttpd.h>
+#include "taler_dbevents.h"
 #include "taler_json_lib.h"
 #include "taler_mhd_lib.h"
 #include "taler-exchange-httpd_common_deposit.h"
@@ -35,13 +36,27 @@
 
 MHD_RESULT
 TEH_handler_purses_delete (
-  struct MHD_Connection *connection,
-  const struct TALER_PurseContractPublicKeyP *purse_pub)
+  struct TEH_RequestContext *rc,
+  const char *const args[1])
 {
+  struct MHD_Connection *connection = rc->connection;
+  struct TALER_PurseContractPublicKeyP purse_pub;
   struct TALER_PurseContractSignatureP purse_sig;
   bool found;
   bool decided;
 
+  if (GNUNET_OK !=
+      GNUNET_STRINGS_string_to_data (args[0],
+                                     strlen (args[0]),
+                                     &purse_pub,
+                                     sizeof (purse_pub)))
+  {
+    GNUNET_break_op (0);
+    return TALER_MHD_reply_with_error (connection,
+                                       MHD_HTTP_BAD_REQUEST,
+                                       TALER_EC_EXCHANGE_GENERIC_PURSE_PUB_MALFORMED,
+                                       args[0]);
+  }
   {
     const char *sig;
 
@@ -66,7 +81,7 @@ TEH_handler_purses_delete (
   }
 
   if (GNUNET_OK !=
-      TALER_wallet_purse_delete_verify (purse_pub,
+      TALER_wallet_purse_delete_verify (&purse_pub,
                                         &purse_sig))
   {
     TALER_LOG_WARNING ("Invalid signature on /purses/$PID/delete request\n");
@@ -89,7 +104,7 @@ TEH_handler_purses_delete (
     enum GNUNET_DB_QueryStatus qs;
 
     qs = TEH_plugin->do_purse_delete (TEH_plugin->cls,
-                                      purse_pub,
+                                      &purse_pub,
                                       &purse_sig,
                                       &decided,
                                       &found);
@@ -117,6 +132,23 @@ TEH_handler_purses_delete (
       TALER_EC_EXCHANGE_PURSE_DELETE_ALREADY_DECIDED,
       NULL);
   }
+  {
+    /* Possible minor optimization: integrate notification with
+       transaction above... */
+    struct TALER_PurseEventP rep = {
+      .header.size = htons (sizeof (rep)),
+      .header.type = htons (TALER_DBEVENT_EXCHANGE_PURSE_DEPOSITED),
+      .purse_pub = purse_pub
+    };
+
+    GNUNET_log (GNUNET_ERROR_TYPE_INFO,
+                "Notifying about purse deletion %s\n",
+                TALER_B2S (&purse_pub));
+    TEH_plugin->event_notify (TEH_plugin->cls,
+                              &rep.header,
+                              NULL,
+                              0);
+  }
   /* success */
   return TALER_MHD_reply_static (connection,
                                  MHD_HTTP_NO_CONTENT,
diff --git a/src/exchange/taler-exchange-httpd_purses_delete.h b/src/exchange/taler-exchange-httpd_purses_delete.h
index 15da21639..912dd43a8 100644
--- a/src/exchange/taler-exchange-httpd_purses_delete.h
+++ b/src/exchange/taler-exchange-httpd_purses_delete.h
@@ -29,14 +29,14 @@
 /**
  * Handle a DELETE "/purses/$PURSE_PUB" request.
  *
- * @param connection the MHD connection to handle
- * @param purse_pub public key of the purse
+ * @param rc request details about the request to handle
+ * @param args argument with the public key of the purse
  * @return MHD result code
  */
 MHD_RESULT
 TEH_handler_purses_delete (
-  struct MHD_Connection *connection,
-  const struct TALER_PurseContractPublicKeyP *purse_pub);
+  struct TEH_RequestContext *rc,
+  const char *const args[1]);
 
 
 #endif
diff --git a/src/exchange/taler-exchange-httpd_purses_deposit.c b/src/exchange/taler-exchange-httpd_purses_deposit.c
index 4bebebf6f..291807aaa 100644
--- a/src/exchange/taler-exchange-httpd_purses_deposit.c
+++ b/src/exchange/taler-exchange-httpd_purses_deposit.c
@@ -374,6 +374,7 @@ TEH_handler_purses_deposit (
     enum GNUNET_DB_QueryStatus qs;
     struct GNUNET_TIME_Timestamp create_timestamp;
     struct GNUNET_TIME_Timestamp merge_timestamp;
+    bool was_deleted;
 
     qs = TEH_plugin->select_purse (
       TEH_plugin->cls,
@@ -383,7 +384,8 @@ TEH_handler_purses_deposit (
       &pcc.amount,
       &pcc.deposit_total,
       &pcc.h_contract_terms,
-      &merge_timestamp);
+      &merge_timestamp,
+      &was_deleted);
     switch (qs)
     {
     case GNUNET_DB_STATUS_HARD_ERROR:
@@ -406,12 +408,16 @@ TEH_handler_purses_deposit (
     case GNUNET_DB_STATUS_SUCCESS_ONE_RESULT:
       break; /* handled below */
     }
-    if (GNUNET_TIME_absolute_is_past (pcc.purse_expiration.abs_time))
+    if (GNUNET_TIME_absolute_is_past (pcc.purse_expiration.abs_time) ||
+        was_deleted)
     {
-      return TALER_MHD_reply_with_error (connection,
-                                         MHD_HTTP_GONE,
-                                         TALER_EC_EXCHANGE_GENERIC_PURSE_EXPIRED,
-                                         NULL);
+      return TALER_MHD_reply_with_error (
+        connection,
+        MHD_HTTP_GONE,
+        was_deleted
+        ? TALER_EC_EXCHANGE_GENERIC_PURSE_DELETED
+        : TALER_EC_EXCHANGE_GENERIC_PURSE_EXPIRED,
+        GNUNET_TIME_timestamp2s (pcc.purse_expiration));
     }
   }
 
diff --git a/src/exchange/taler-exchange-httpd_purses_get.c b/src/exchange/taler-exchange-httpd_purses_get.c
index 8384086b6..e36b9a101 100644
--- a/src/exchange/taler-exchange-httpd_purses_get.c
+++ b/src/exchange/taler-exchange-httpd_purses_get.c
@@ -207,6 +207,7 @@ TEH_handler_purses_get (struct TEH_RequestContext *rc,
                         const char *const args[2])
 {
   struct GetContext *gc = rc->rh_ctx;
+  bool purse_deleted;
   MHD_RESULT res;
 
   if (NULL == gc)
@@ -312,7 +313,8 @@ TEH_handler_purses_get (struct TEH_RequestContext *rc,
                                    &gc->amount,
                                    &gc->deposited,
                                    &gc->h_contract,
-                                   &gc->merge_timestamp);
+                                   &gc->merge_timestamp,
+                                   &purse_deleted);
     switch (qs)
     {
     case GNUNET_DB_STATUS_HARD_ERROR:
@@ -367,11 +369,14 @@ TEH_handler_purses_get (struct TEH_RequestContext *rc,
       gc->eh = eh2;
     }
   }
-  if (GNUNET_TIME_absolute_is_past (gc->purse_expiration.abs_time))
+  if (GNUNET_TIME_absolute_is_past (gc->purse_expiration.abs_time) ||
+      purse_deleted)
   {
     return TALER_MHD_reply_with_error (rc->connection,
                                        MHD_HTTP_GONE,
-                                       TALER_EC_EXCHANGE_GENERIC_PURSE_EXPIRED,
+                                       purse_deleted
+                                       ? TALER_EC_EXCHANGE_GENERIC_PURSE_DELETED
+                                       : TALER_EC_EXCHANGE_GENERIC_PURSE_EXPIRED,
                                        GNUNET_TIME_timestamp2s (
                                          gc->purse_expiration));
   }
diff --git a/src/exchangedb/Makefile.am b/src/exchangedb/Makefile.am
index 4adb4180c..c11828d0e 100644
--- a/src/exchangedb/Makefile.am
+++ b/src/exchangedb/Makefile.am
@@ -284,13 +284,15 @@ check_PROGRAMS = \
   bench-db-postgres\
   perf-exchangedb-reserves-in-insert-postgres\
   test-exchangedb-by-j-postgres\
-  test-exchangedb-batch-reserves-in-insert-postgres
+  test-exchangedb-batch-reserves-in-insert-postgres\
+  test-exchangedb-populate-table-postgres
 AM_TESTS_ENVIRONMENT=export TALER_PREFIX=$${TALER_PREFIX:-@libdir@};export PATH=$${TALER_PREFIX:-@prefix@}/bin:$$PATH;
 TESTS = \
   test-exchangedb-postgres\
   test-exchangedb-by-j-postgres\
   perf-exchangedb-reserves-in-insert-postgres\
-  test-exchangedb-batch-reserves-in-insert-postgres
+  test-exchangedb-batch-reserves-in-insert-postgres\
+  test-exchangedb-populate-table-postgres
 
 
 test_exchangedb_postgres_SOURCES = \
@@ -364,6 +366,27 @@ bench_db_postgres_LDADD = \
   -lgnunetutil \
   $(XLIB)
 
+test_exchangedb_populate_table_postgres_SOURCES = \
+  test_exchangedb_populate_table.c
+test_exchangedb_populate_table_postgres_LDADD = \
+  libtalerexchangedb.la \
+  $(top_builddir)/src/json/libtalerjson.la \
+  $(top_builddir)/src/util/libtalerutil.la \
+  $(top_builddir)/src/pq/libtalerpq.la \
+  -ljansson \
+  -lgnunetjson \
+  -lgnunetutil \
+  $(XLIB)
+
+bench_db_postgres_SOURCES = \
+  bench_db.c
+bench_db_postgres_LDADD = \
+  libtalerexchangedb.la \
+  $(top_builddir)/src/util/libtalerutil.la \
+  $(top_builddir)/src/pq/libtalerpq.la \
+  -lgnunetpq \
+  -lgnunetutil \
+  $(XLIB)
 
 EXTRA_test_exchangedb_postgres_DEPENDENCIES = \
   libtaler_plugin_exchangedb_postgres.la
diff --git a/src/exchangedb/exchange_do_delete_purse.sql b/src/exchangedb/exchange_do_purse_delete.sql
similarity index 93%
rename from src/exchangedb/exchange_do_delete_purse.sql
rename to src/exchangedb/exchange_do_purse_delete.sql
index a57f25454..096475b43 100644
--- a/src/exchangedb/exchange_do_delete_purse.sql
+++ b/src/exchangedb/exchange_do_purse_delete.sql
@@ -14,7 +14,7 @@
 -- TALER; see the file COPYING.  If not, see <http://www.gnu.org/licenses/>
 --
 
-CREATE OR REPLACE FUNCTION exchange_do_delete_purse(
+CREATE OR REPLACE FUNCTION exchange_do_purse_delete(
   IN in_purse_pub BYTEA,
   IN in_purse_sig BYTEA,
   IN in_now INT8,
@@ -28,7 +28,7 @@ DECLARE
   my_in_reserve_quota BOOLEAN;
 BEGIN
 
-SELECT COUNT(*) FROM purse_decision
+PERFORM refunded FROM purse_decision
   WHERE purse_pub=in_purse_pub;
 IF FOUND
 THEN
@@ -49,7 +49,7 @@ THEN
 END IF;
 
 -- store reserve deletion
-INSERT INTO purse_deletion
+INSERT INTO exchange.purse_deletion
   (purse_pub
   ,purse_sig)
 VALUES
@@ -115,5 +115,5 @@ END LOOP;
 
 END $$;
 
-COMMENT ON FUNCTION exchange_do_delete_purse(BYTEA,BYTEA,INT8)
+COMMENT ON FUNCTION exchange_do_purse_delete(BYTEA,BYTEA,INT8)
   IS 'Delete a previously undecided purse and refund the coins (if any).';
diff --git a/src/exchangedb/pg_select_purse.c b/src/exchangedb/pg_select_purse.c
index e2a36c33e..9143e8721 100644
--- a/src/exchangedb/pg_select_purse.c
+++ b/src/exchangedb/pg_select_purse.c
@@ -35,7 +35,8 @@ TEH_PG_select_purse (
   struct TALER_Amount *amount,
   struct TALER_Amount *deposited,
   struct TALER_PrivateContractHashP *h_contract_terms,
-  struct GNUNET_TIME_Timestamp *merge_timestamp)
+  struct GNUNET_TIME_Timestamp *merge_timestamp,
+  bool *purse_deleted)
 {
   struct PostgresClosure *pg = cls;
   struct GNUNET_PQ_QueryParam params[] = {
@@ -57,6 +58,8 @@ TEH_PG_select_purse (
       GNUNET_PQ_result_spec_timestamp ("merge_timestamp",
                                        merge_timestamp),
       NULL),
+    GNUNET_PQ_result_spec_bool ("purse_deleted",
+                                purse_deleted),
     GNUNET_PQ_result_spec_end
   };
 
@@ -72,8 +75,10 @@ TEH_PG_select_purse (
            ",balance_val"
            ",balance_frac"
            ",merge_timestamp"
+           ",purse_sig IS NOT NULL AS purse_deleted"
            " FROM purse_requests"
            " LEFT JOIN purse_merges USING (purse_pub)"
+           " LEFT JOIN purse_deletion USING (purse_pub)"
            " WHERE purse_pub=$1;");
   *merge_timestamp = GNUNET_TIME_UNIT_FOREVER_TS;
   return GNUNET_PQ_eval_prepared_singleton_select (pg->conn,
diff --git a/src/exchangedb/pg_select_purse.h b/src/exchangedb/pg_select_purse.h
index f522256df..db63f0c90 100644
--- a/src/exchangedb/pg_select_purse.h
+++ b/src/exchangedb/pg_select_purse.h
@@ -37,6 +37,7 @@
  * @param[out] deposited set to actual amount put into the purse so far
  * @param[out] h_contract_terms set to hash of the contract for the purse
  * @param[out] merge_timestamp set to time when the purse was merged, or NEVER if not
+ * @param[out] purse_deleted set to true if purse was deleted
  * @return transaction status code
  */
 enum GNUNET_DB_QueryStatus
@@ -48,7 +49,8 @@ TEH_PG_select_purse (
   struct TALER_Amount *amount,
   struct TALER_Amount *deposited,
   struct TALER_PrivateContractHashP *h_contract_terms,
-  struct GNUNET_TIME_Timestamp *merge_timestamp);
+  struct GNUNET_TIME_Timestamp *merge_timestamp,
+  bool *purse_deleted);
 
 
 #endif
diff --git a/src/exchangedb/procedures.sql.in b/src/exchangedb/procedures.sql.in
index af47bbf63..194830248 100644
--- a/src/exchangedb/procedures.sql.in
+++ b/src/exchangedb/procedures.sql.in
@@ -28,11 +28,11 @@ SET search_path TO exchange;
 #include "exchange_do_recoup_to_reserve.sql"
 #include "exchange_do_recoup_to_coin.sql"
 #include "exchange_do_gc.sql"
+#include "exchange_do_purse_delete.sql"
 #include "exchange_do_purse_deposit.sql"
 #include "exchange_do_purse_merge.sql"
 #include "exchange_do_reserve_purse.sql"
 #include "exchange_do_expire_purse.sql"
-#include "exchange_do_delete_purse.sql"
 #include "exchange_do_history_request.sql"
 #include "exchange_do_reserve_open_deposit.sql"
 #include "exchange_do_reserve_open.sql"
diff --git a/src/exchangedb/test_exchangedb.c b/src/exchangedb/test_exchangedb.c
index eb258f002..68f94b6ea 100644
--- a/src/exchangedb/test_exchangedb.c
+++ b/src/exchangedb/test_exchangedb.c
@@ -1351,6 +1351,7 @@ run (void *cls)
     RND_BLK (&age_hash);
     for (size_t i = 0; i < sizeof(p_ah) / sizeof(p_ah[0]); i++)
     {
+
       RND_BLK (&coin_pub);
       GNUNET_assert (GNUNET_OK ==
                      TALER_denom_blind (&dkp->pub,
diff --git a/src/exchangedb/test_exchangedb_populate_table.c b/src/exchangedb/test_exchangedb_populate_table.c
new file mode 100644
index 000000000..ed30894b1
--- /dev/null
+++ b/src/exchangedb/test_exchangedb_populate_table.c
@@ -0,0 +1,431 @@
+/*
+  This file is part of TALER
+  Copyright (C) 2014-2022 Taler Systems SA
+
+  TALER is free software; you can redistribute it and/or modify it under the
+  terms of the GNU General Public License as published by the Free Software
+  Foundation; either version 3, or (at your option) any later version.
+
+  TALER is distributed in the hope that it will be useful, but WITHOUT ANY
+  WARRANTY; without even the implied warranty of MERCHANTABILITY or FITNESS FOR
+  A PARTICULAR PURPOSE.  See the GNU General Public License for more details.
+
+  You should have received a copy of the GNU General Public License along with
+  TALER; see the file COPYING.  If not, see <http://www.gnu.org/licenses/>
+*/
+/**
+ * @file exchangedb/test_exchangedb_populate_table.c
+ * @brief test cases for DB interaction functions
+ * @author Joseph Xu
+ */
+#include "platform.h"
+#include "taler_exchangedb_lib.h"
+#include "taler_json_lib.h"
+#include "taler_exchangedb_plugin.h"
+
+/**o
+ * Global result from the testcase.
+ */
+static int result;
+
+/**
+ * Report line of error if @a cond is true, and jump to label "drop".
+ */
+#define FAILIF(cond)                            \
+  do {                                          \
+      if (! (cond)) {break;}                    \
+    GNUNET_break (0);                           \
+    goto drop;                                  \
+  } while (0)
+
+
+/**
+ * Initializes @a ptr with random data.
+ */
+#define RND_BLK(ptr)                                                    \
+  GNUNET_CRYPTO_random_block (GNUNET_CRYPTO_QUALITY_WEAK, ptr, sizeof (*ptr))
+
+/**
+ * Initializes @a ptr with zeros.
+ */
+#define ZR_BLK(ptr) \
+  memset (ptr, 0, sizeof (*ptr))
+
+
+/**
+ * Currency we use.  Must match test-exchange-db-*.conf.
+ */
+#define CURRENCY "EUR"
+
+
+/**
+ * Number of newly minted coins to use in the test.
+ */
+#define MELT_NEW_COINS 5
+
+
+/**
+ * How big do we make the RSA keys?
+ */
+#define RSA_KEY_SIZE 1024
+
+
+/**
+ * Database plugin under test.
+ */
+static struct TALER_EXCHANGEDB_Plugin *plugin;
+static struct TALER_DenomFeeSet fees;
+
+
+struct DenomKeyPair
+{
+  struct TALER_DenominationPrivateKey priv;
+  struct TALER_DenominationPublicKey pub;
+};
+
+
+/**
+ * Destroy a denomination key pair.  The key is not necessarily removed from the DB.
+ *
+ * @param dkp the key pair to destroy
+ */
+static void
+destroy_denom_key_pair (struct DenomKeyPair *dkp)
+{
+  TALER_denom_pub_free (&dkp->pub);
+  TALER_denom_priv_free (&dkp->priv);
+  GNUNET_free (dkp);
+}
+
+
+/**
+ * Create a denomination key pair by registering the denomination in the DB.
+ *
+ * @param size the size of the denomination key
+ * @param now time to use for key generation, legal expiration will be 3h later.
+ * @param fees fees to use
+ * @return the denominaiton key pair; NULL upon error
+ */
+static struct DenomKeyPair *
+create_denom_key_pair (unsigned int size,
+                       struct GNUNET_TIME_Timestamp now,
+                       const struct TALER_Amount *value,
+                       const struct TALER_DenomFeeSet *fees)
+{
+  struct DenomKeyPair *dkp;
+  struct TALER_EXCHANGEDB_DenominationKey dki;
+  struct TALER_EXCHANGEDB_DenominationKeyInformation issue2;
+
+  dkp = GNUNET_new (struct DenomKeyPair);
+  GNUNET_assert (GNUNET_OK ==
+                 TALER_denom_priv_create (&dkp->priv,
+                                          &dkp->pub,
+                                          TALER_DENOMINATION_RSA,
+                                          size));
+  memset (&dki,
+          0,
+          sizeof (struct TALER_EXCHANGEDB_DenominationKey));
+  dki.denom_pub = dkp->pub;
+  dki.issue.start = now;
+  dki.issue.expire_withdraw
+    = GNUNET_TIME_absolute_to_timestamp (
+        GNUNET_TIME_absolute_add (
+          now.abs_time,
+          GNUNET_TIME_UNIT_HOURS));
+  dki.issue.expire_deposit
+    = GNUNET_TIME_absolute_to_timestamp (
+        GNUNET_TIME_absolute_add (
+          now.abs_time,
+          GNUNET_TIME_relative_multiply (
+            GNUNET_TIME_UNIT_HOURS, 2)));
+  dki.issue.expire_legal
+    = GNUNET_TIME_absolute_to_timestamp (
+        GNUNET_TIME_absolute_add (
+          now.abs_time,
+          GNUNET_TIME_relative_multiply (
+            GNUNET_TIME_UNIT_HOURS, 3)));
+  dki.issue.value = *value;
+  dki.issue.fees = *fees;
+  TALER_denom_pub_hash (&dkp->pub,
+                        &dki.issue.denom_hash);
+  if (GNUNET_DB_STATUS_SUCCESS_ONE_RESULT !=
+      plugin->insert_denomination_info (plugin->cls,
+                                        &dki.denom_pub,
+                                        &dki.issue))
+  {
+    GNUNET_break (0);
+    destroy_denom_key_pair (dkp);
+    return NULL;
+  }
+  memset (&issue2, 0, sizeof (issue2));
+  if (GNUNET_DB_STATUS_SUCCESS_ONE_RESULT !=
+      plugin->get_denomination_info (plugin->cls,
+                                     &dki.issue.denom_hash,
+                                     &issue2))
+  {
+    GNUNET_break (0);
+    destroy_denom_key_pair (dkp);
+    return NULL;
+  }
+  if (0 != GNUNET_memcmp (&dki.issue,
+                          &issue2))
+  {
+    GNUNET_break (0);
+    destroy_denom_key_pair (dkp);
+    return NULL;
+  }
+  return dkp;
+}
+
+
+
+
+
+/**
+ * Main function that will be run by the scheduler.
+ *
+ * @param cls closure with config
+ */
+
+static void
+run (void *cls)
+{
+  struct GNUNET_CONFIGURATION_Handle *cfg = cls;
+  const uint32_t num_partitions = 10;
+  struct DenomKeyPair *dkp = NULL;
+  struct GNUNET_TIME_Timestamp ts;
+  struct TALER_EXCHANGEDB_Deposit depos;
+  struct GNUNET_TIME_Timestamp ts_deadline;
+  struct TALER_Amount value;
+  union TALER_DenominationBlindingKeyP bks;
+  struct TALER_CoinPubHashP c_hash;
+  struct TALER_EXCHANGEDB_CollectableBlindcoin cbc;
+  struct TALER_ExchangeWithdrawValues alg_values = {
+    .cipher = TALER_DENOMINATION_RSA
+    };
+  struct TALER_PlanchetMasterSecretP ps;
+  struct TALER_ReservePublicKeyP reserve_pub;
+
+  ZR_BLK (&cbc);
+  RND_BLK (&reserve_pub);
+
+  memset (&depos,
+          0,
+          sizeof (depos));
+
+  if (NULL ==
+      (plugin = TALER_EXCHANGEDB_plugin_load (cfg)))
+  {
+    GNUNET_break (0);
+    result = 77;
+    return;
+  }
+  (void) plugin->drop_tables (plugin->cls);
+  if (GNUNET_OK !=
+      plugin->create_tables (plugin->cls,
+                             true,
+                             num_partitions))
+  {
+    GNUNET_break (0);
+    result = 77;
+    goto cleanup;
+  }
+  if (GNUNET_OK !=
+      plugin->preflight (plugin->cls))
+  {
+    GNUNET_break (0);
+    goto cleanup;
+  }
+
+
+  GNUNET_assert (GNUNET_OK ==
+                 TALER_string_to_amount (CURRENCY ":1.000010",
+                                         &value));
+  GNUNET_assert (GNUNET_OK ==
+                 TALER_string_to_amount (CURRENCY ":0.000010",
+                                         &fees.withdraw));
+  GNUNET_assert (GNUNET_OK ==
+                 TALER_string_to_amount (CURRENCY ":0.000010",
+                                         &fees.deposit));
+  GNUNET_assert (GNUNET_OK ==
+                 TALER_string_to_amount (CURRENCY ":0.000010",
+                                         &fees.refresh));
+  GNUNET_assert (GNUNET_OK ==
+                 TALER_string_to_amount (CURRENCY ":0.000010",
+                                         &fees.refund));
+
+  ts = GNUNET_TIME_timestamp_get ();
+
+  dkp = create_denom_key_pair (RSA_KEY_SIZE,
+                               ts,
+                               &value,
+                               &fees);
+  GNUNET_assert (NULL != dkp);
+  TALER_denom_pub_hash (&dkp->pub,
+                        &cbc.denom_pub_hash);
+  RND_BLK (&cbc.reserve_sig);
+  RND_BLK (&ps);
+  TALER_planchet_blinding_secret_create (&ps,
+                                         &alg_values,
+                                         &bks);
+
+  {
+    struct TALER_PlanchetDetail pd;
+    struct TALER_CoinSpendPublicKeyP coin_pub;
+    struct TALER_AgeCommitmentHash age_hash;
+    struct TALER_AgeCommitmentHash *p_ah[2] = {
+      NULL,
+      &age_hash
+    };
+
+
+    RND_BLK (&age_hash);
+    for (size_t i = 0; i < sizeof(p_ah) / sizeof(p_ah[0]); i++)
+    {
+      fprintf(stdout, "OPEN\n");
+      RND_BLK (&coin_pub);
+      GNUNET_assert (GNUNET_OK ==
+                     TALER_denom_blind (&dkp->pub,
+                                        &bks,
+                                        p_ah[i],
+                                        &coin_pub,
+                                        &alg_values,
+                                        &c_hash,
+                                        &pd.blinded_planchet));
+      GNUNET_assert (GNUNET_OK ==
+                     TALER_coin_ev_hash (&pd.blinded_planchet,
+                                         &cbc.denom_pub_hash,
+                                         &cbc.h_coin_envelope));
+      if (i != 0)
+        TALER_blinded_denom_sig_free (&cbc.sig);
+      GNUNET_assert (
+        GNUNET_OK ==
+        TALER_denom_sign_blinded (
+          &cbc.sig,
+          &dkp->priv,
+          false,
+          &pd.blinded_planchet));
+      TALER_blinded_planchet_free (&pd.blinded_planchet);
+    }
+  }
+
+  cbc.reserve_pub = reserve_pub;
+  cbc.amount_with_fee = value;
+  GNUNET_assert (GNUNET_OK ==
+                 TALER_amount_set_zero (CURRENCY,
+                                        &cbc.withdraw_fee));
+
+
+
+
+  ts_deadline = GNUNET_TIME_timestamp_get ();
+
+  depos.deposit_fee = fees.deposit;
+
+  RND_BLK (&depos.coin.coin_pub);
+  TALER_denom_pub_hash (&dkp->pub,
+                        &depos.coin.denom_pub_hash);
+  GNUNET_assert (GNUNET_OK ==
+                 TALER_denom_sig_unblind (&depos.coin.denom_sig,
+                                          &cbc.sig,
+                                          &bks,
+                                          &c_hash,
+                                          &alg_values,
+                                          &dkp->pub));
+  {
+    uint64_t known_coin_id;
+    struct TALER_DenominationHashP dph;
+    struct TALER_AgeCommitmentHash agh;
+
+    FAILIF (TALER_EXCHANGEDB_CKS_ADDED !=
+            plugin->ensure_coin_known (plugin->cls,
+                                       &depos.coin,
+                                       &known_coin_id,
+                                       &dph,
+                                       &agh));
+  }
+  {
+    TALER_denom_sig_free (&depos.coin.denom_sig);
+    struct GNUNET_TIME_Timestamp now;
+    RND_BLK (&depos.merchant_pub);
+    RND_BLK (&depos.csig);
+    RND_BLK (&depos.h_contract_terms);
+    RND_BLK (&depos.wire_salt);
+    depos.amount_with_fee = value;
+    depos.refund_deadline = ts_deadline;
+    depos.wire_deadline = ts_deadline;
+    depos.receiver_wire_account =
+      "payto://iban/DE67830654080004822650?receiver-name=Test";
+    depos.timestamp = ts;
+
+    now = GNUNET_TIME_timestamp_get ();
+    FAILIF (GNUNET_DB_STATUS_SUCCESS_ONE_RESULT !=
+            plugin->insert_deposit (plugin->cls,
+                                    now,
+                                    &depos));
+  }
+
+  result = 0;
+  drop:
+  GNUNET_break (GNUNET_OK ==
+  plugin->drop_tables (plugin->cls));
+cleanup:
+  if (NULL != dkp)
+    destroy_denom_key_pair (dkp);
+  TALER_denom_sig_free (&depos.coin.denom_sig);
+  TALER_blinded_denom_sig_free (&cbc.sig);
+  dkp = NULL;
+  TALER_EXCHANGEDB_plugin_unload (plugin);
+  plugin = NULL;
+}
+
+
+int
+main (int argc,
+      char *const argv[])
+{
+  const char *plugin_name;
+  char *config_filename;
+  char *testname;
+  struct GNUNET_CONFIGURATION_Handle *cfg;
+
+  (void) argc;
+  result = -1;
+  if (NULL == (plugin_name = strrchr (argv[0], (int) '-')))
+  {
+    GNUNET_break (0);
+    return -1;
+  }
+  GNUNET_log_setup (argv[0],
+                    "WARNING",
+                    NULL);
+  plugin_name++;
+  (void) GNUNET_asprintf (&testname,
+                          "test-exchange-db-%s",
+                          plugin_name);
+  (void) GNUNET_asprintf (&config_filename,
+                          "%s.conf",
+                          testname);
+  fprintf (stdout,
+           "Using config: %s\n",
+           config_filename);
+  cfg = GNUNET_CONFIGURATION_create ();
+  if (GNUNET_OK !=
+      GNUNET_CONFIGURATION_parse (cfg,
+                                  config_filename))
+  {
+    GNUNET_break (0);
+    GNUNET_free (config_filename);
+    GNUNET_free (testname);
+    return 2;
+  }
+  GNUNET_SCHEDULER_run (&run,
+                        cfg);
+  GNUNET_CONFIGURATION_destroy (cfg);
+  GNUNET_free (config_filename);
+  GNUNET_free (testname);
+  return result;
+}
+
+
+/* end of test_exchangedb_by_j.c */
diff --git a/src/include/taler_exchange_service.h b/src/include/taler_exchange_service.h
index 0e33f7770..938b74457 100644
--- a/src/include/taler_exchange_service.h
+++ b/src/include/taler_exchange_service.h
@@ -4983,7 +4983,7 @@ struct TALER_EXCHANGE_PurseDeleteHandle;
  * @param cb_cls closure for @a cb
  * @return the request handle; NULL upon error
  */
-struct TALER_EXCHANGE_PurseCreateDepositHandle *
+struct TALER_EXCHANGE_PurseDeleteHandle *
 TALER_EXCHANGE_purse_delete (
   struct TALER_EXCHANGE_Handle *exchange,
   const struct TALER_PurseContractPrivateKeyP *purse_priv,
diff --git a/src/include/taler_exchangedb_plugin.h b/src/include/taler_exchangedb_plugin.h
index 5a55b5c93..da28262a8 100644
--- a/src/include/taler_exchangedb_plugin.h
+++ b/src/include/taler_exchangedb_plugin.h
@@ -5827,6 +5827,7 @@ struct TALER_EXCHANGEDB_Plugin
    * @param[out] deposited set to actual amount put into the purse so far
    * @param[out] h_contract_terms set to hash of the contract for the purse
    * @param[out] merge_timestamp set to time when the purse was merged, or NEVER if not
+   * @param[out] purse_deleted set to true if purse was deleted
    * @return transaction status code
    */
   enum GNUNET_DB_QueryStatus
@@ -5838,7 +5839,8 @@ struct TALER_EXCHANGEDB_Plugin
     struct TALER_Amount *amount,
     struct TALER_Amount *deposited,
     struct TALER_PrivateContractHashP *h_contract_terms,
-    struct GNUNET_TIME_Timestamp *merge_timestamp);
+    struct GNUNET_TIME_Timestamp *merge_timestamp,
+    bool *purse_deleted);
 
 
   /**
diff --git a/src/include/taler_testing_lib.h b/src/include/taler_testing_lib.h
index aa475bd33..55d36b2de 100644
--- a/src/include/taler_testing_lib.h
+++ b/src/include/taler_testing_lib.h
@@ -2567,6 +2567,21 @@ TALER_TESTING_cmd_purse_create_with_deposit (
   ...);
 
 
+/**
+ * Deletes a purse.
+ *
+ * @param label command label
+ * @param expected_http_status what HTTP status do we expect to get returned from the exchange
+ * @param purse_cmd command that created the purse
+ * @return the command
+ */
+struct TALER_TESTING_Command
+TALER_TESTING_cmd_purse_delete (
+  const char *label,
+  unsigned int expected_http_status,
+  const char *purse_cmd);
+
+
 /**
  * Retrieve contract (also checks that the contract matches
  * the upload command).
diff --git a/src/lib/Makefile.am b/src/lib/Makefile.am
index e695cf043..b775719e6 100644
--- a/src/lib/Makefile.am
+++ b/src/lib/Makefile.am
@@ -52,6 +52,7 @@ libtalerexchange_la_SOURCES = \
   exchange_api_melt.c \
   exchange_api_purse_create_with_deposit.c \
   exchange_api_purse_create_with_merge.c \
+  exchange_api_purse_delete.c \
   exchange_api_purse_deposit.c \
   exchange_api_purse_merge.c \
   exchange_api_purses_get.c \
diff --git a/src/lib/exchange_api_purse_delete.c b/src/lib/exchange_api_purse_delete.c
new file mode 100644
index 000000000..27a9082b2
--- /dev/null
+++ b/src/lib/exchange_api_purse_delete.c
@@ -0,0 +1,243 @@
+/*
+   This file is part of TALER
+   Copyright (C) 2022 Taler Systems SA
+
+   TALER is free software; you can redistribute it and/or modify it under the
+   terms of the GNU General Public License as published by the Free Software
+   Foundation; either version 3, or (at your option) any later version.
+
+   TALER is distributed in the hope that it will be useful, but WITHOUT ANY
+   WARRANTY; without even the implied warranty of MERCHANTABILITY or FITNESS FOR
+   A PARTICULAR PURPOSE.  See the GNU General Public License for more details.
+
+   You should have received a copy of the GNU General Public License along with
+   TALER; see the file COPYING.  If not, see
+   <http://www.gnu.org/licenses/>
+ */
+/**
+ * @file lib/exchange_api_purse_delete.c
+ * @brief Implementation of the client to delete a purse
+ *        into an account
+ * @author Christian Grothoff
+ */
+#include "platform.h"
+#include <jansson.h>
+#include <microhttpd.h> /* just for HTTP status codes */
+#include <gnunet/gnunet_util_lib.h>
+#include <gnunet/gnunet_json_lib.h>
+#include <gnunet/gnunet_curl_lib.h>
+#include "taler_json_lib.h"
+#include "taler_exchange_service.h"
+#include "exchange_api_handle.h"
+#include "exchange_api_common.h"
+#include "taler_signatures.h"
+#include "exchange_api_curl_defaults.h"
+
+
+/**
+ * @brief A purse delete with deposit handle
+ */
+struct TALER_EXCHANGE_PurseDeleteHandle
+{
+
+  /**
+   * The connection to exchange this request handle will use
+   */
+  struct TALER_EXCHANGE_Handle *exchange;
+
+  /**
+   * The url for this request.
+   */
+  char *url;
+
+  /**
+   * Handle for the request.
+   */
+  struct GNUNET_CURL_Job *job;
+
+  /**
+   * Function to call with the result.
+   */
+  TALER_EXCHANGE_PurseDeleteCallback cb;
+
+  /**
+   * Closure for @a cb.
+   */
+  void *cb_cls;
+
+  /**
+   * Header with the purse_sig.
+   */
+  struct curl_slist *xhdr;
+};
+
+
+/**
+ * Function called when we're done processing the
+ * HTTP DELETE /purse/$PID request.
+ *
+ * @param cls the `struct TALER_EXCHANGE_PurseDeleteHandle`
+ * @param response_code HTTP response code, 0 on error
+ * @param response parsed JSON result, NULL on error
+ */
+static void
+handle_purse_delete_finished (void *cls,
+                              long response_code,
+                              const void *response)
+{
+  struct TALER_EXCHANGE_PurseDeleteHandle *pdh = cls;
+  const json_t *j = response;
+  struct TALER_EXCHANGE_PurseDeleteResponse dr = {
+    .hr.reply = j,
+    .hr.http_status = (unsigned int) response_code
+  };
+
+  pdh->job = NULL;
+  switch (response_code)
+  {
+  case 0:
+    dr.hr.ec = TALER_EC_GENERIC_INVALID_RESPONSE;
+    break;
+  case MHD_HTTP_NO_CONTENT:
+    break;
+  case MHD_HTTP_BAD_REQUEST:
+    /* This should never happen, either us or the exchange is buggy
+       (or API version conflict); just pass JSON reply to the application */
+    dr.hr.ec = TALER_JSON_get_error_code (j);
+    dr.hr.hint = TALER_JSON_get_error_hint (j);
+    break;
+  case MHD_HTTP_FORBIDDEN:
+    dr.hr.ec = TALER_JSON_get_error_code (j);
+    dr.hr.hint = TALER_JSON_get_error_hint (j);
+    /* Nothing really to verify, exchange says one of the signatures is
+       invalid; as we checked them, this should never happen, we
+       should pass the JSON reply to the application */
+    break;
+  case MHD_HTTP_NOT_FOUND:
+    dr.hr.ec = TALER_JSON_get_error_code (j);
+    dr.hr.hint = TALER_JSON_get_error_hint (j);
+    /* Nothing really to verify, this should never
+       happen, we should pass the JSON reply to the application */
+    break;
+  case MHD_HTTP_CONFLICT:
+    dr.hr.ec = TALER_JSON_get_error_code (j);
+    dr.hr.hint = TALER_JSON_get_error_hint (j);
+    break;
+  case MHD_HTTP_INTERNAL_SERVER_ERROR:
+    dr.hr.ec = TALER_JSON_get_error_code (j);
+    dr.hr.hint = TALER_JSON_get_error_hint (j);
+    /* Server had an internal issue; we should retry, but this API
+       leaves this to the application */
+    break;
+  default:
+    /* unexpected response code */
+    dr.hr.ec = TALER_JSON_get_error_code (j);
+    dr.hr.hint = TALER_JSON_get_error_hint (j);
+    GNUNET_log (GNUNET_ERROR_TYPE_ERROR,
+                "Unexpected response code %u/%d for exchange deposit\n",
+                (unsigned int) response_code,
+                dr.hr.ec);
+    GNUNET_break_op (0);
+    break;
+  }
+  pdh->cb (pdh->cb_cls,
+           &dr);
+  TALER_EXCHANGE_purse_delete_cancel (pdh);
+}
+
+
+struct TALER_EXCHANGE_PurseDeleteHandle *
+TALER_EXCHANGE_purse_delete (
+  struct TALER_EXCHANGE_Handle *exchange,
+  const struct TALER_PurseContractPrivateKeyP *purse_priv,
+  TALER_EXCHANGE_PurseDeleteCallback cb,
+  void *cb_cls)
+{
+  struct TALER_EXCHANGE_PurseDeleteHandle *pdh;
+  struct GNUNET_CURL_Context *ctx;
+  CURL *eh;
+  struct TALER_PurseContractPublicKeyP purse_pub;
+  struct TALER_PurseContractSignatureP purse_sig;
+  char arg_str[sizeof (purse_pub) * 2 + 32];
+
+  pdh = GNUNET_new (struct TALER_EXCHANGE_PurseDeleteHandle);
+  pdh->exchange = exchange;
+  pdh->cb = cb;
+  pdh->cb_cls = cb_cls;
+  GNUNET_CRYPTO_eddsa_key_get_public (&purse_priv->eddsa_priv,
+                                      &purse_pub.eddsa_pub);
+  GNUNET_assert (GNUNET_YES ==
+                 TEAH_handle_is_ready (exchange));
+  {
+    char pub_str[sizeof (purse_pub) * 2];
+    char *end;
+
+    end = GNUNET_STRINGS_data_to_string (&purse_pub,
+                                         sizeof (purse_pub),
+                                         pub_str,
+                                         sizeof (pub_str));
+    *end = '\0';
+    GNUNET_snprintf (arg_str,
+                     sizeof (arg_str),
+                     "/purses/%s",
+                     pub_str);
+  }
+  pdh->url = TEAH_path_to_url (exchange,
+                               arg_str);
+  if (NULL == pdh->url)
+  {
+    GNUNET_break (0);
+    GNUNET_free (pdh);
+    return NULL;
+  }
+  TALER_wallet_purse_delete_sign (purse_priv,
+                                  &purse_sig);
+  {
+    char *delete_str;
+    char *xhdr;
+
+    delete_str =
+      GNUNET_STRINGS_data_to_string_alloc (&purse_sig,
+                                           sizeof (purse_sig));
+    GNUNET_asprintf (&xhdr,
+                     "Taler-Purse-Signature: %s",
+                     delete_str);
+    GNUNET_free (delete_str);
+    pdh->xhdr = curl_slist_append (NULL,
+                                   xhdr);
+    GNUNET_free (xhdr);
+  }
+  eh = TALER_EXCHANGE_curl_easy_get_ (pdh->url);
+  GNUNET_assert (CURLE_OK ==
+                 curl_easy_setopt (eh,
+                                   CURLOPT_CUSTOMREQUEST,
+                                   MHD_HTTP_METHOD_DELETE));
+  GNUNET_log (GNUNET_ERROR_TYPE_DEBUG,
+              "URL for purse delete: `%s'\n",
+              pdh->url);
+  ctx = TEAH_handle_to_context (exchange);
+  pdh->job = GNUNET_CURL_job_add2 (ctx,
+                                   eh,
+                                   pdh->xhdr,
+                                   &handle_purse_delete_finished,
+                                   pdh);
+  return pdh;
+}
+
+
+void
+TALER_EXCHANGE_purse_delete_cancel (
+  struct TALER_EXCHANGE_PurseDeleteHandle *pdh)
+{
+  if (NULL != pdh->job)
+  {
+    GNUNET_CURL_job_cancel (pdh->job);
+    pdh->job = NULL;
+  }
+  curl_slist_free_all (pdh->xhdr);
+  GNUNET_free (pdh->url);
+  GNUNET_free (pdh);
+}
+
+
+/* end of exchange_api_purse_delete.c */
diff --git a/src/testing/Makefile.am b/src/testing/Makefile.am
index 5ae7de409..db2a54e73 100644
--- a/src/testing/Makefile.am
+++ b/src/testing/Makefile.am
@@ -77,6 +77,7 @@ libtalertesting_la_SOURCES = \
   testing_api_cmd_offline_sign_keys.c \
   testing_api_cmd_offline_sign_extensions.c \
   testing_api_cmd_purse_create_deposit.c \
+  testing_api_cmd_purse_delete.c \
   testing_api_cmd_purse_deposit.c \
   testing_api_cmd_purse_get.c \
   testing_api_cmd_purse_merge.c \
diff --git a/src/testing/test_exchange_p2p.c b/src/testing/test_exchange_p2p.c
index f159b2f1b..ad95bf63c 100644
--- a/src/testing/test_exchange_p2p.c
+++ b/src/testing/test_exchange_p2p.c
@@ -158,6 +158,19 @@ run (void *cls,
     TALER_TESTING_cmd_end ()
   };
   struct TALER_TESTING_Command push[] = {
+    TALER_TESTING_cmd_purse_create_with_deposit (
+      "purse-with-deposit-for-delete",
+      MHD_HTTP_OK,
+      "{\"amount\":\"EUR:1\",\"summary\":\"ice cream\"}",
+      true, /* upload contract */
+      GNUNET_TIME_UNIT_MINUTES, /* expiration */
+      "withdraw-coin-1",
+      "EUR:1.01",
+      NULL),
+    TALER_TESTING_cmd_purse_delete (
+      "purse-with-deposit-delete",
+      MHD_HTTP_NO_CONTENT,
+      "purse-with-deposit-for-delete"),
     TALER_TESTING_cmd_purse_create_with_deposit (
       "purse-with-deposit",
       MHD_HTTP_OK,
diff --git a/src/testing/testing_api_cmd_purse_delete.c b/src/testing/testing_api_cmd_purse_delete.c
new file mode 100644
index 000000000..aa0853274
--- /dev/null
+++ b/src/testing/testing_api_cmd_purse_delete.c
@@ -0,0 +1,190 @@
+/*
+  This file is part of TALER
+  Copyright (C) 2020 Taler Systems SA
+
+  TALER is free software; you can redistribute it and/or modify it
+  under the terms of the GNU General Public License as published by
+  the Free Software Foundation; either version 3, or (at your
+  option) any later version.
+
+  TALER is distributed in the hope that it will be useful, but
+  WITHOUT ANY WARRANTY; without even the implied warranty of
+  MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the GNU
+  General Public License for more details.
+
+  You should have received a copy of the GNU General Public
+  License along with TALER; see the file COPYING.  If not, see
+  <http://www.gnu.org/licenses/>
+*/
+/**
+ * @file testing/testing_api_cmd_purse_delete.c
+ * @brief command for testing /management/purse/disable.
+ * @author Christian Grothoff
+ */
+#include "platform.h"
+#include "taler_json_lib.h"
+#include <gnunet/gnunet_curl_lib.h>
+#include "taler_testing_lib.h"
+#include "taler_signatures.h"
+#include "backoff.h"
+
+
+/**
+ * State for a "purse_delete" CMD.
+ */
+struct PurseDeleteState
+{
+
+  /**
+   * Purse delete handle while operation is running.
+   */
+  struct TALER_EXCHANGE_PurseDeleteHandle *pdh;
+
+  /**
+   * Our interpreter.
+   */
+  struct TALER_TESTING_Interpreter *is;
+
+  /**
+   * Expected HTTP response code.
+   */
+  unsigned int expected_response_code;
+
+  /**
+   * Command that created the purse we now want to
+   * delete.
+   */
+  const char *purse_cmd;
+};
+
+
+/**
+ * Callback to analyze the DELETE /purses/$PID response, just used to check if
+ * the response code is acceptable.
+ *
+ * @param cls closure.
+ * @param pdr HTTP response details
+ */
+static void
+purse_delete_cb (void *cls,
+                 const struct TALER_EXCHANGE_PurseDeleteResponse *pdr)
+{
+  struct PurseDeleteState *pds = cls;
+
+  pds->pdh = NULL;
+  if (pds->expected_response_code != pdr->hr.http_status)
+  {
+    GNUNET_log (GNUNET_ERROR_TYPE_ERROR,
+                "Unexpected response code %u to command %s in %s:%u\n",
+                pdr->hr.http_status,
+                pds->is->commands[pds->is->ip].label,
+                __FILE__,
+                __LINE__);
+    json_dumpf (pdr->hr.reply,
+                stderr,
+                0);
+    TALER_TESTING_interpreter_fail (pds->is);
+    return;
+  }
+  TALER_TESTING_interpreter_next (pds->is);
+}
+
+
+/**
+ * Run the command.
+ *
+ * @param cls closure.
+ * @param cmd the command to execute.
+ * @param is the interpreter state.
+ */
+static void
+purse_delete_run (void *cls,
+                  const struct TALER_TESTING_Command *cmd,
+                  struct TALER_TESTING_Interpreter *is)
+{
+  struct PurseDeleteState *pds = cls;
+  const struct TALER_PurseContractPrivateKeyP *purse_priv;
+  const struct TALER_TESTING_Command *ref;
+
+  (void) cmd;
+  ref = TALER_TESTING_interpreter_lookup_command (is,
+                                                  pds->purse_cmd);
+  if (NULL == ref)
+  {
+    GNUNET_break (0);
+    TALER_TESTING_interpreter_fail (is);
+    return;
+  }
+  if (GNUNET_OK !=
+      TALER_TESTING_get_trait_purse_priv (ref,
+                                          &purse_priv))
+  {
+    GNUNET_break (0);
+    TALER_TESTING_interpreter_fail (is);
+    return;
+  }
+  pds->is = is;
+  pds->pdh = TALER_EXCHANGE_purse_delete (
+    is->exchange,
+    purse_priv,
+    &purse_delete_cb,
+    pds);
+  if (NULL == pds->pdh)
+  {
+    GNUNET_break (0);
+    TALER_TESTING_interpreter_fail (is);
+    return;
+  }
+}
+
+
+/**
+ * Free the state of a "purse_delete" CMD, and possibly cancel a
+ * pending operation thereof.
+ *
+ * @param cls closure, must be a `struct PurseDeleteState`.
+ * @param cmd the command which is being cleaned up.
+ */
+static void
+purse_delete_cleanup (void *cls,
+                      const struct TALER_TESTING_Command *cmd)
+{
+  struct PurseDeleteState *pds = cls;
+
+  if (NULL != pds->pdh)
+  {
+    GNUNET_log (GNUNET_ERROR_TYPE_WARNING,
+                "Command %u (%s) did not complete\n",
+                pds->is->ip,
+                cmd->label);
+    TALER_EXCHANGE_purse_delete_cancel (pds->pdh);
+    pds->pdh = NULL;
+  }
+  GNUNET_free (pds);
+}
+
+
+struct TALER_TESTING_Command
+TALER_TESTING_cmd_purse_delete (const char *label,
+                                unsigned int expected_http_status,
+                                const char *purse_cmd)
+{
+  struct PurseDeleteState *ds;
+
+  ds = GNUNET_new (struct PurseDeleteState);
+  ds->expected_response_code = expected_http_status;
+  ds->purse_cmd = purse_cmd;
+  {
+    struct TALER_TESTING_Command cmd = {
+      .cls = ds,
+      .label = label,
+      .run = &purse_delete_run,
+      .cleanup = &purse_delete_cleanup
+    };
+
+    return cmd;
+  }
+}
+
+
+/* end of testing_api_cmd_purse_delete.c */
diff --git a/src/testing/testing_api_cmd_withdraw.c b/src/testing/testing_api_cmd_withdraw.c
index 7a81d1c33..1bd3c187e 100644
--- a/src/testing/testing_api_cmd_withdraw.c
+++ b/src/testing/testing_api_cmd_withdraw.c
@@ -360,14 +360,12 @@ withdraw_run (void *cls,
     = TALER_TESTING_interpreter_lookup_command (
         is,
         ws->reserve_reference);
-
   if (NULL == create_reserve)
   {
     GNUNET_break (0);
     TALER_TESTING_interpreter_fail (is);
     return;
   }
-
   if (GNUNET_OK !=
       TALER_TESTING_get_trait_reserve_priv (create_reserve,
                                             &rp))
@@ -376,7 +374,6 @@ withdraw_run (void *cls,
     TALER_TESTING_interpreter_fail (is);
     return;
   }
-
   if (NULL == ws->exchange_url)
     ws->exchange_url
       = GNUNET_strdup (TALER_EXCHANGE_get_base_url (is->exchange));