Understanding Payment Statuses in Transaction Processing

When processing transactions, whether it's for online orders or point-of-sale (POS) systems, payments typically move through several distinct statuses. These statuses help merchants and customers track the progress and outcome of payments. Below are the key payment statuses and what each one signifies.

Once an order is generated, it enters the Inprogress status. At this stage, the system is awaiting payment, and webhooks are actively monitoring the network nodes to detect any updates related to the transaction. This ensures that the payment status is tracked in real-time, providing both merchants and customers with accurate information.

If the payment is not completed within the allotted time frame, the transaction will shift to the Expired status. This indicates that the payment window has passed, and the order is considered closed. However, in cases where a payment is made after expiration, the system will still detect it and assign an Unresolved indicator to the order, notifying the merchant of this late transaction.

An Underpaid status occurs when the customer has made a payment, but the amount sent is less than what the merchant expected for that order. In this case, the order remains unresolved until further action is taken, such as requesting the remaining amount or issuing a refund for the partial payment.

The Paid status is achieved when the exact amount of the order has been received at the specified address. This status indicates that the payment process is complete, but the transaction may still require further confirmation from the network.

If the customer sends more than the required amount for the order, the transaction will be marked as Overpaid. This status informs the merchant that an excess amount has been received, prompting potential follow-up actions like refunding the surplus or confirming with the customer.

Once the payment amount (either equal to or more than the order total) has been received and verified by at least six confirmations on the network, the order moves into the Confirmed status. This status signifies that the transaction is fully completed and secured on the blockchain, allowing the merchant to fulfill the order with confidence.

Each of these payment statuses plays a crucial role in ensuring transparent and efficient transaction processing. Understanding them helps businesses manage their orders and payments more effectively, providing clarity in case of any payment discrepancies or delays.