diff --git a/src/cpp/ripple/TransactionEngine.cpp b/src/cpp/ripple/TransactionEngine.cpp
index e4cadfb99..1d9b33cc7 100644
--- a/src/cpp/ripple/TransactionEngine.cpp
+++ b/src/cpp/ripple/TransactionEngine.cpp
@@ -110,13 +110,50 @@ TER TransactionEngine::applyTransaction(const SerializedTransaction& txn, Transa
 
 		cLog(lsINFO) << "applyTransaction: terResult=" << strToken << " : " << terResult << " : " << strHuman;
 
-		if (isTepPartial(terResult) && isSetBit(params, tapRETRY))
-		{
-			// Partial result and allowed to retry, reclassify as a retry.
-			terResult	= terRETRY;
+		bool applyTransaction = false;
+
+		if (terResult == tesSUCCESS)
+			applyTransaction = true;
+		else if (isTepPartial(terResult) && !isSetBit(params, tapRETRY))
+			applyTransaction = true;
+		else if (isTecClaim(terResult) && !isSetBit(params, tapRETRY))
+		{ // only claim the transaction fee
+			mNodes.clear();
+
+			SLE::pointer txnAcct = entryCache(ltACCOUNT_ROOT, Ledger::getAccountRootIndex(txn.getSourceAccount()));
+			if (!txnAcct)
+				terResult = terNO_ACCOUNT;
+			else
+			{
+				uint32 t_seq = txn.getSequence();
+				uint32 a_seq = txnAcct->getFieldU32(sfSequence);
+
+				if (t_seq != a_seq)
+				{
+					if (a_seq < t_seq)
+						terResult = terPRE_SEQ;
+					else
+						terResult = tefPAST_SEQ;
+				}
+				else
+				{
+					STAmount fee = txn.getTransactionFee();
+					STAmount balance = txnAcct->getFieldAmount(sfBalance);
+
+					if (balance < fee)
+						terResult = terINSUF_FEE_B;
+					else
+					{
+						txnAcct->setFieldAmount(sfBalance, balance - fee);
+						txnAcct->setFieldU32(sfSequence, t_seq + 1);
+						applyTransaction = true;
+						entryModify(txnAcct);
+					}
+				}
+			}
 		}
 
-		if ((tesSUCCESS == terResult) || isTepPartial(terResult))
+		if (applyTransaction)
 		{
 			// Transaction succeeded fully or (retries are not allowed and the transaction succeeded partially).
 			Serializer m;