Transaction Lifecycle
This guide provides an overview of how card transactions work in the Issuing API, including the transaction flow, lifecycle states, and transaction types.Overview
Card transactions are created automatically when cardholders use their cards for purchases, ATM withdrawals, or other card-based transactions. As an issuer, you can monitor these transactions, view their status, and perform operations like refunds.Transaction Lifecycle
Card transactions follow a standard authorization-capture flow with support for reversals and refunds:Transaction Flow
The following sequence diagram shows how a card transaction flows through the system:Transaction Statuses Overview
Card transactions can be in one of four states:| Status | Description | Next Actions |
|---|---|---|
| pending | Transaction authorized but not captured | Can be captured or voided |
| posted | Transaction captured and finalized | Can be refunded |
| declined | Authorization failed | No further action |
| void | Authorization reversed | No further action |
For detailed information about each status, see Transaction Statuses.
Transaction Types
Card transactions can have different intents:| Intent | Description | Example |
|---|---|---|
| charge | Card purchase or payment | Cardholder buys goods at merchant |
| refund | Refund of a previous charge | Merchant refunds a purchase |
| topup | Adding funds to card account | Cardholder adds money to prepaid card |
| withdraw | ATM withdrawal | Cardholder withdraws cash |
| fee | Service fee | Monthly card fee, ATM fee |
| cashback | Cashback reward | Rewards program cashback |
| interest | Interest payment | Interest earned on balance |
Key Concepts
Authorization vs Capture
- Authorization: Holds funds but doesn’t transfer them. Transaction status is
pending. - Capture: Transfers funds and finalizes the transaction. Transaction status becomes
posted.
Reversal vs Refund
- Reversal (Void): Cancels a
pendingauthorization before capture. Funds are released immediately. - Refund: Returns funds from a
postedtransaction. Creates a new refund transaction.
Next Steps
- Transaction Statuses - Detailed guide to transaction statuses
- Webhooks Guide - Set up real-time transaction notifications
- API Reference - Explore transaction endpoints