Error & Exception Handling
Handling of transaction failures, disputes, and exceptional scenarios.
Payment Failed
Transaction declined by issuer or payment processing failed.
Outcome: No credit
- Transaction status set to Failed
- No funds credited to recipient ledger
- Payer sees error message with decline reason (if available)
- Transaction logged for audit purposes
Risk Flagged
Transaction identified by fraud or risk monitoring controls.
Outcome: Hold / Review / Decline
- Transaction placed on hold pending review
- Compliance case created automatically
- Funds not credited until review complete
- Resolution: release, decline, or request more information
Verification Incomplete
Recipient has not completed required verification.
Outcome: Payout restricted
- Funds may be credited to internal ledger
- Payout functionality blocked
- Recipient prompted to complete verification
- Funds released upon successful verification
Chargeback Received
Payer disputes transaction with their issuing bank.
Outcome: Funds reversed
- Transaction status updated to Disputed
- Ledger adjusted: funds debited from recipient balance
- Evidence collection initiated
- Chargeback response submitted if applicable
Refund Requested
Refund initiated by recipient or platform.
Outcome: Funds returned
- Refund processed through original payment method
- Recipient ledger balance reduced
- Original transaction linked to refund
- Confirmation sent to payer and recipient
Settlement Delay
Funds not received from PSP/Acquirer within expected timeframe.
Outcome: Pending
- Transaction remains in pending status
- Reconciliation triggered
- PSP/Acquirer contacted if delay exceeds threshold
- Funds credited upon confirmation
Dispute & Refund Handling
Detailed process for chargebacks and refunds
Chargeback Process
- 1Chargeback notification received from PSP/Acquirer
- 2Transaction status updated, ledger adjusted
- 3Evidence collected: transaction data, recipient info
- 4Response submitted within deadline (if representment applicable)
- 5Final outcome: won, lost, or accepted
Refund Process
- 1Refund requested by recipient or initiated by platform
- 2Refund eligibility checked (time limits, amount)
- 3Refund instruction sent to PSP/Acquirer
- 4Recipient ledger balance reduced
- 5Payer receives funds (timeline depends on issuer)
Evidence Retention: All transaction records, communication logs, and dispute-related documentation are retained per regulatory requirements and platform policy. Evidence is stored securely and made available for compliance review and dispute response.
Note: Details may vary by PSP/acquirer integration and regulatory requirements.