# Pay in transaction lifecycle

> Track payment progress with comprehensive status monitoring across authorization, settlement, and funding. Explore the transaction lifecycle with an interactive tool showing real-time status transitions

Because each money in transaction involves several parallel processes, Payabli provides different statuses you can track. This lets you monitor both the synchronous and asynchronous activities that a transaction is involved with.

## Transaction lifecycle explorer

Use this tool to explore how the statuses change as a transaction progresses through its lifecycle.

<TransactionLifecycleSimulator />

## Example

The following example showcases how the different money in statuses give a comprehensive view of an ideal transaction's lifecycle, from initial sale to final settlement.

<Steps titlesize="h3">
  <Step title="Making the transaction">
    A customer logs into the payment portal and submits their payment. The payment method is verified, and the transaction is authorized, meaning the funds are recognized but not yet taken. The **TransStatus** is **Authorized (11)**.

    The merchant captures the transaction, and the card is charged. The transaction status changes to **Captured (1)**, securing the funds for the transaction.

    The transaction status is considered final after the batch closes, and the **TransStatus** won't change from **Captured (1)** except in rare circumstances. Now, the focus shifts to tracking other statuses.

    Transaction status (TransStatus) represents the status of an individual payment in the system, providing a straightforward indication of whether the payment is approved, voided, declined, and so on.

    <img src="https://files.buildwithfern.com/payabli.docs.buildwithfern.com/c063e413a8c65e330a935b31023cad7e65aa7a9e14b93041461954ca96c590cf/images/generated-diagrams/money-in-transaction-status.svg" alt="Transaction status flow: Authorized to Captured" aria-describedby="money-in-transaction-status-desc" />

    <div id="money-in-transaction-status-desc" class="sr-only">
      <h4>
        Diagram: Money In Transaction Status Flow
      </h4>

      <p>
        This diagram shows how a transaction's status progresses during payment processing:
      </p>

      <ul>
        <li>
          Starting state: Authorized (TransStatus 11) - Payment method verified, funds reserved but not captured. BatchStatus 0 (Open), SettlementStatus 0 (Pending)
        </li>

        <li>
          Action: Merchant captures the transaction via API or auto-capture
        </li>

        <li>
          Result: Status changes to Captured (TransStatus 1) - Funds secured for transaction
        </li>

        <li>
          Final state: TransStatus remains 1 after batch closes (becomes permanent), BatchStatus and SettlementStatus remain 0
        </li>
      </ul>
    </div>
  </Step>

  <Step title="Batching transactions for processing">
    The payment, along with others submitted that day, are grouped into a batch for processing, and the **BatchStatus** is **Open (0)**. At this stage, **TransferStatus** is **Pending (0)**.

    At the cutoff time, the batch that contains the payment is closed and the **BatchStatus** changes to **Closed (1)**. The batched transactions are verified, and are prepared for the next steps. **TransferStatus** and the transaction's **SettlementStatus** should now both be **In Transit (1)**.

    Batch status (BatchStatus) tracks a group (batch) of transactions, which are multiple payments being processed together.

    <img src="https://files.buildwithfern.com/payabli.docs.buildwithfern.com/4b99a95c59c5b8c373b1676f2f2c80e26f9154a9cf742f44b807f11017271c13/images/generated-diagrams/money-in-batch-status.svg" alt="Batch status flow: Open to Closed to In Transit" aria-describedby="money-in-batch-status-desc" />

    <div id="money-in-batch-status-desc" class="sr-only">
      <h4>
        Diagram: Money In Batch Status Flow
      </h4>

      <p>
        This diagram shows how batched transactions progress through the processing pipeline:
      </p>

      <ul>
        <li>
          Starting state: BatchStatus 0 (Open) - Transactions are grouped for processing. TransferStatus 0 (Pending), TransStatus 1 (Captured), SettlementStatus 0 (Pending).
        </li>

        <li>
          Trigger: Batch cutoff time reached (usually end of business day)
        </li>

        <li>
          Action: System closes the batch and verifies all transactions
        </li>

        <li>
          Result: BatchStatus changes to 1 (Closed) - Batch ready for settlement
        </li>

        <li>
          Concurrent updates: TransferStatus and SettlementStatus both change to 1 (In Transit)
        </li>

        <li>
          Final state: BatchStatus 1, TransferStatus 1, TransStatus 1, SettlementStatus 1
        </li>
      </ul>
    </div>
  </Step>

  <Step title="Moving the money">
    The transfer process starts, with funds leaving the payment processor's account and heading to the recipient's account. The **TransferStatus** and the transaction's **SettlementStatus** both change to **Transferred (2)**.

    When the funds are deposited into the recipient's account, the **TransferStatus** and the **SettlementStatus** both change to **Funded (3)**.

    Once a payment reaches the 'transferred' status, you can typically expect the funds to appear in your bank account within 1-2 business days.

    Transfer status (TransferStatus) monitors the actual payment transfer to the recipient's bank account.

    Payment funding status (SettlementStatus) helps track an individual transaction's progress through the settlement process, monitoring the journey of the funds.

    <img src="https://files.buildwithfern.com/payabli.docs.buildwithfern.com/980e7049c5f935e2955a2cdb2ecd6d585ceaff3089471125f5c8d47d2f93f4ed/images/generated-diagrams/money-in-transfer-status.svg" alt="Transfer status flow: Transferred to Funded" aria-describedby="money-in-transfer-status-desc" />

    <div id="money-in-transfer-status-desc" class="sr-only">
      <h4>
        Diagram: Money In Transfer Status Flow
      </h4>

      <p>
        This diagram shows how funds move from the processor to the recipient's bank account:
      </p>

      <ul>
        <li>
          Starting state: TransferStatus 2 (Transferred) - Funds have left the payment processor's account. BatchStatus 1 (Closed), TransStatus 1 (Captured), SettlementStatus 2 (Transferred).
        </li>

        <li>
          Action: Bank processes the transfer and deposits funds into recipient's account
        </li>

        <li>
          Result: TransferStatus changes to 3 (Funded) - Money available in recipient's account
        </li>

        <li>
          Concurrent update: SettlementStatus also changes to 3 (Funded)
        </li>

        <li>
          Final state: TransferStatus 3, BatchStatus 1, TransStatus 1, SettlementStatus 3
        </li>
      </ul>
    </div>
  </Step>
</Steps>

## Next steps

Learn more about [Pay In statuses](/guides/pay-in-status-reference).