Payment Lifecycle

Learn about the lifecycle of a payment and how to manage the different aspects using Finix.

Most transactions in Finix follow a similar pattern. The diagram below models out the Payment Lifecycle for Finix:

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:

   • 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.

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, Authorization#state gets updated to SUCCEEDED and Authorization#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, Authorization#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.

   • A webhooks gets sent when the Authorization gets captured.
   • The authorization entry gets updated on the Authorizations tab of the Finix Dashboard.

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 Transfer#ready_to_settle_at.

   • A webhooks gets sent when the Transfer is ready_to_settle.
   • The transaction entry gets updated on the Transactions tab of the Finix Dashboard.

9. Once the timestamp in Transfer#ready_to_settle_at passes, the Transfer will appear in the next Settlement 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.

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).

    • 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.