Paybase offers various types of transaction depending on the nature of product we are supporting. We group each type of transaction as follows:
- Flow - indicates whether funds are flowing into, out of, or within the Paybase platform.
- Method - the underlying scheme by which the transaction is being processed.
- Purpose - the intent of the transaction
|Inbound||Card||Purchase or Deposit||Inbound Card transactions are used to load funds into an Account in the Paybase system.|
|Outbound||BankAccount||Withdrawal||Outbound BankAccount transactions are used to withdraw funds from the platform via the UK's Faster Payments payment network.|
|Internal||Transfer||Transfer or Purchase||Internal Transfer transactions are used to move funds across Accounts within the Paybase system.|
Transactions can exist in one of these states:
Typically, a transaction will be created, and once it's passed our rules will progress from
PROCESSING, a successful transaction will transition to
EFFECTED. This is the happy path for a transaction and usually
EFFECTED will mark the end of a transaction's lifecycle.
Sometimes a transaction could be
DISPUTED. This can happen, for example, when a customer disputes whether a transaction is valid or if it happened at all. Furthermore, a transaction may be fully or partially refunded. In this case, it will transition to
The available balance of an Account follows the rule of optimistic debits and pessimistic credits. This means transactions that have not yet been
EFFECTED will debit the balance of the sender, but not credit the balance of the receiver. Once they have been
EFFECTED, the receiver's available balance is credited accordingly.
PENDING is the initial state of a transaction, at this point the transaction will be considered incomplete, it will be deducted from the sender's balance but not added to the receiver's balance. For most use cases the
PENDING state is transient, however, when a rule marks a transaction for review it will remain in
PENDING transaction can either transition to
ACCEPTED transaction means that the transaction has passed all rules and requirements, the transaction is ready to be processed at this point. Typically, this state is transient as we begin to process transactions immediately. Accepted transactions can be transitioned to
A transaction that is in the
PROCESSING state is presently being committed. For transactions internal to Paybase, this state is transient. For transactions that involve banking and card networks, this state will mean we have passed the transaction onto the network for execution and are waiting for confirmation of an outcome. From
PROCESSING, a transaction can be transitioned to
HELD state is used as part of conditional payments and escrow solutions. When in
HELD the value of the funds is not available to either party. From
HELD the transition can only move to directly
EFFECTED, however, the transaction can also be transitioned to
ADJUSTED, internally this will go via
EFFECTED. The transaction should be transitioned to
EFFECTED when the 'conditional payments' scenario went entirely as planned, transitioning to
ADJUSTED should be used when a deduction or refund should be involved, in this case you would also need to supply an adjustment amount to describe the amount to be refunded.
If processing of the transaction failed due to a temporary supplier or network failure, the transaction will transition to
ERRORED, the transaction can be retried, it will transition back to
ACCEPTED and then
ERRORED transaction can also be
CANCELLED transaction is in an end state, it will revert any incomplete adjustments and cause the transaction to have no effect on any involved party's balances.
If processing of the transaction failed due to a permanent error (e.g. the provided bank account details are invalid), the transaction will transition to
FAILED. This is not the same as
FAILED indicates the transaction is invalid.
FAILED is an end state and cannot be transitioned out of. It will revert any incomplete adjustments and cause the transaction to have no effect on any involved party's balances.
EFFECTED state means the transaction has been processed and taken effect. Incomplete debits and credits will become complete, and the balances of all involved parties will be adjusted accordingly. For most cases, a transaction will stay in this state forever, however, it can be transitioned to
DISPUTED state indicates that the transaction is currently under dispute.
A transaction should be transitioned to the
ADJUSTED state when it has been refunded. It may enter
DISPUTED as a result of a dispute resolution that requires a full or partial refund. A transaction may also be
ADJUSTED from the
EFFECTED state. This is preferable when both parties are mutually agreed on the adjustment as it avoids the dispute process.
For more on transaction refunds, go here