Payment Lifecycle
Learn about the lifecycle of a payment and how to manage the different aspects using Finix.
It's important to understand the lifecycle of payments in Finix to support your sellers and buyers.
While there are some nuances, most transactions in Finix follow a similar pattern. Understanding this pattern and the 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 pattern:
- Buyer requests to make a payment with seller.
-
The platform collects the buyers information and creates an
Identity
to represent the buyer in Finix. -
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:-
A webhook which only gets sent when a
Payment Instrument
gets created from a bank account , debit or credit card . - A payment instrument entry on the Payment Instruments tab of the Finix Dashboard .
-
A webhook which only gets sent when a
-
The platform creates an
Authorization
to reserve the funds on thePayment 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 .
-
If the
Authorization
is successful,Authorization#state
gets updated to SUCCEEDED andAuthorization#expires_at
gets updated with a timestamp. TheAuthorization
entry on the Authorizations tab of the Finix Dashboard also gets updated.-
If the
Authorization
fails,Authorization#state
gets updated to FAILED . TheAuthorization
entry on the Authorizations tab of the Finix Dashboard also gets updated. To proceed, the platform needs to submit theAuthorization
again.
-
If the
-
The platform captures the
Authorization
.-
A webhooks gets sent when the
Authorization
gets captured . - The authorization entry gets updated on the Authorizations tab of the Finix Dashboard .
-
A webhooks gets sent when the
-
Finix creates a
Transfer
to debit and move funds.-
The
id
of theTransfer
is available in theAuthorization
captured webhook. -
A
transaction
entry gets added on the Transactions tab of the Finix Dashboard .
-
The
-
When funds get debited, the
Transfer
gets updated with a timestamp inTransfer#ready_to_settle_at
.-
A webhooks gets sent when the
Transfer
isready_to_settle
. - The transaction entry gets updated on the Transactions tab of the Finix Dashboard .
-
A webhooks gets sent when the
-
Once the timestamp in
Transfer#ready_to_settle_at
passes, theTransfer
will appear in the nextSettlement
that closes and requires approval.-
A webhooks gets sent when a
Settlement
is ready and waiting for your approval . - An settlement entry also gets added on the Settlements tab of the Finix Dashboard .
-
A webhooks gets sent when a
-
Once the
Settlement
is approved, a fundingTransfer
gets created to credit funds to the seller.- The settlement entry also gets updated on the Settlements tab of the Finix Dashboard .
-
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).-
See
Managing Failed Payouts
for details on how to handle a funding
Transfer
that gets updated to FAILED . -
A webhooks gets sent when the
Transfer
gets updated .
-
See
Managing Failed Payouts
for details on how to handle a funding