This page explains how a payment moves through the system, from initiation to completion, and clarifies the difference between:

Payment Statuses: what your application or API returns
Payment Lifecycle: what happens to a payment behind the scenes

Payment Statuses

A payment status represents the final, externally visible outcome of a payment request.

Possible Statuses

Status	Description
`APPROVED`	The payment was successful and authorized for processing. The payment remains adjustable until it is settled.
`DECLINED`	The payment failed due to a network, issuer, or gateway rejection. No funds are processed.
`SETTLED`	The payment has been included in a closed batch and successfully processed for fund movement. Once a payment is `SETTLED`, it can no longer be adjusted or voided.
`VOIDED`	The payment was cancelled by the customer before it was settled. No funds were processed.

Payment Lifecycle

The payment lifecycle describes the journey of a payment request through the system, including both successful and unsuccessful outcomes.

Unlike transaction statuses, lifecycle stages represent processing steps, not API-visible states.

a. Payment Completion flow - SALE

What happens:

The payment is initiated and sent for processing and authorization.
The payment is approved by the network and remains in APPROVED status.
While the batch is open:
- The payment may be adjusted, if required.
Once the batch is closed:
- The payment is included in the batch for processing.
- The payment moves to SETTLED status.
After settlement:
- Funds are successfully credited.
- The payment lifecycle is considered complete.

b. Payment Completion flow - Separate Authorization & Capture

What happens:

The Authorization is initiated by the customer and sent to the network/issuer for authorization.
The issuer validates the authorization details and confirms fund availability.
The authorization returns as APPROVED (Authorization Success). At this stage:
- Funds are held (reserved) on the customer’s account.
- No funds are transferred.
- The transaction is not yet eligible for settlement.
A Capture request is triggered by the merchant. The capture request confirms that the merchant intends to collect the authorized funds.
The payment returns as APPROVED (Capture Success).
The captured transaction becomes eligible for batch processing.
Once the batch is closed:
- The transaction is submitted for settlement.
- The payment moves to SETTLED status.
After settlement:
- Funds are successfully credited to the merchant account.
- The payment lifecycle is considered complete.

b. Non-completion flow - Sale

What happens:

The payment is initiated and sent for processing and authorization.
The payment does not reach settlement and exits the standard lifecycle early.
The flow can end in one of the following ways:
- DECLINED: The network, issuer, or gateway rejects the payment during authorization.
- VOIDED: The payment is approved but cancelled by the customer before batch closure.
In both cases:
- The payment is not included in a closed batch.
- No settlement occurs.
- No funds are credited or moved.

b. Non-completion Scenarios - Separate Auth & Capture

In a Separate Authorization and Capture model, a payment may not proceed to settlement for various reasons occurring at different stages of the lifecycle. Non-completion scenarios can arise during authorization or during the capture attempt after funds have been reserved.

The table below outlines these scenarios and clarifies whether funds are held and what ultimately happens to the transaction.

Scenario	Capture Attempted?	Funds Held?	What Happens
Authorization Declined	No	No	The issuer rejects the Authorization request and marks it as `DECLINED`. No funds are reserved. The transaction ends. No settlement occurs.
Authorized but Not Captured (Expired)	No	Yes	Funds are temporarily held after its `APPROVED`. No capture is initiated. The authorization expires after the allowed time window. Held funds are released. No settlement occurs.
Capture Declined	Yes	Yes	Authorization is `APPROVED` and funds are held. Capture request is initiated but `DECLINED` by the issuer due to reasons such as, insufficient funds. No settlement occurs. Authorization remains `APPROVED` for retry and expires later, after which funds are released.
Capture Voided Before Batch Closure	Yes	Yes	Authorization and capture are `APPROVED`. However, the Capture is `VOIDED` before batch closure. The transaction is removed from settlement processing. Funds are released. No settlement occurs.

Please reach to the Account Management team to know more about Authorization Expiry interval.

What Happens:

The payment is initiated and sent for authorization.
The issuer validates the transaction and checks fund availability.

Authorization Stage

From here, two primary outcomes occur:
- Authorization Declined: The issuer or network rejects the payment. The payment returns DECLINED. No funds are held. The transaction does not proceed further. No settlement occurs.
- Authorization Approved (Funds Held): The issuer approves the transaction. Funds are temporarily reserved.

Capture Stage

Once authorized, the outcome depends on whether a capture is attempted.
If Capture is not initiated, the Authorization may end in one of the following ways:
- Merchant-Initiated Void: The merchant cancels the authorization. The hold is released. No settlement occurs.
- Authorization Expiry: No capture request is sent within the allowed time window. The authorization expires automatically. The hold is released. No settlement occurs.
If Capture is initiated, one of the following outcomes may occur:
- Capture Declined: The issuer declines the capture request (e.g., insufficient funds or amount mismatch). The transaction does not proceed to settlement.
- Capture Approved but Voided Before Batch Closure: The capture request is approved. Before batch closure, the transaction is voided. The transaction is removed from settlement processing. The held funds are released. No settlement occurs.