What do the different transfer types and statuses mean?

Transfers explained

Transfers represent all the funds going in and out of the virtual balance accounts. The transfers have different statuses depending on the payment lifecycle flow. Understanding the different types of transfers and their statuses can help you find the most relevant ones on your balance platform.

Transfer types

Several transfers can take place on the balance platform. These include:

• Bank transfer: A transfer of funds from a balance account to an external bank account without the use of a payment method. These are often used for payouts to sub-merchant bank accounts.
• Internal transfer: A transfer of funds between internal balance accounts within the balance platform.
• Payment (platform): The total sum of several events, including the payment being triggered at a point of sale or online, then being processed by the acquirer and issuer, and the funds being reserved, deducted, or added to the balance account.
• Fees: The funds the platform receives when the payment is split between a sub-merchant and the platform. 
• Refund: A customer-initiated request to merchants/platforms to return funds following a payment.
• Chargeback: When refund requests are denied by the merchant, customers can request a payment reversal via their bank. The processing is handled by the customer's bank.
• Captured: The payment authorization for fulfilled orders. Capture is the first time the financial transaction is presented to the issuer for settlement.
• Card transfers: Payments made using physical or virtual cards.
• Grants: A capital offer that a sub-merchant can receive from the platform/merchant, after all the eligibility checks have been passed.

Transfer statuses

There are different stages in the transfer lifecycle. Each stage has a specific status that differs depending on the type of transfer. Below are the six most common statuses for transfers:

• Received: The transaction request has been created and details regarding the account holder and payout amount are registered. This applies to bank transfers, platform and card payments, grants, and internal transfers.
• Authorized: The transfer amount has been reserved on the account for payouts. This also signals that payments, grants, and internal transfers are in pending debit or credit status. 
• Booked: The funds are deducted from the balance account and sent to the bank account. This status specifically applies to payments, bank transfers, internal transfers, and grants.
• Failed: The transfer is rejected by an external banking system and potential retry attempts have been unsuccessful. Reasons for failed status include the bank account not being found, the account being closed, or the bank being unavailable for processing.
• Captured: A customer has completed a credit or debit card purchase and the request is sent to the issuing bank. 
• Settled: Happens after Captured. When the platform or merchant receives the funds.
• Canceled: A payment made via an issued card can also be fully or partially canceled. This results in the pending debit balance being released.