Payment Lifecycle

It's important to understand the lifecycle of payments in Finix to support your sellers and buyers.

Payments Lifecycle

While there are some nuances, most transactions in Finix follow a similar pattern. Understanding this lifecycle a of payments will help you better understand and explain what causes a payment to get rejected, or where funds are at any point in a transactions.

Even though the process can change depending on the transaction, the lifecycle of most payments in Finix follows this standard lifecycle:

  1. Buyer requests to make a payment with seller.
  2. The platform collects the buyers information and creates an Identity to represent the buyer in Finix.
  3. The platform collects the buyer's payment information and creates a payment_instrument to represent the payment method used by the buyer to complete the payment. Once created, Finix notifies the seller with:
  4. The platform creates an authorization to reserve the funds on the payment_instrument to be captured (i.e. debited) at a later date, usually within seven days.
    • An authorization entry also gets added on the Authorizations tab of the Finix Dashboard .
  5. If the authorization is successful, its state gets updated to SUCCEEDED and expires_at gets updated with a timestamp. The authorization entry on the Authorizations tab of the Finix Dashboard also gets updated.
    • If the authorization fails, its state gets updated to FAILED . The authorization entry on the Authorizations tab of the Finix Dashboard also gets updated. To proceed, the platform needs to submit the authorization again.
  6. The platform captures the authorization .
  7. Finix creates a transfer to debit and move funds.
    • The id of the transfer is available in the authorization captured webhook.
    • A transaction entry gets added on the Transactions tab of the Finix Dashboard .
  8. When funds get debited, the transfer gets updated with a timestamp in ready_to_settle_at .
  9. Once the timestamp in ready_to_settle_at passes, the transfer will appear in the next settlement that closes and requires approval.
  10. Once the settlement is approved, a funding transfer gets created to credit funds to the seller.
    • The settlement entry also gets updated on the Settlements tab of the Finix Dashboard .
  11. When the funding transfer gets updated to SUCCEEDED , the seller can expect funds to hit their bank account in 5-7 business days (depending on their bank).