Transaction Lifecycle

Understanding the transaction lifecycle helps you build robust payment flows, handle edge cases, and provide accurate status updates to your customers.

Outgoing Transaction Flow

Your customer/platform sends funds to an external recipient.

Create Quote

Lock in exchange rate and fees:

POST /quotes

{
  "source": {"sourceType": "ACCOUNT", "accountId": "InternalAccount:e85dcbd6-dced-4ec4-b756-3c3a9ea3d965"},
  "destination": {"destinationType": "ACCOUNT", "accountId": "ExternalAccount:a12dcbd6-dced-4ec4-b756-3c3a9ea3d123"},
  "lockedCurrencySide": "SENDING",
  "lockedCurrencyAmount": 100000
}

Response:

Quote ID
Locked exchange rate
Expiration time (typically ~5 minutes or greater, depending on corridor)

Execute Quote

Initiate the payment:

POST /quotes/{quoteId}/execute

Result:

Transaction created with status PENDING
Source account debited immediately
OUTGOING_PAYMENT.PENDING webhook sent

Processing

Grid handles:

Currency conversion (if applicable)
Routing to appropriate payment rail
Settlement with destination bank/wallet

Status: PROCESSING

Completion or Failure

Success Path:

Funds delivered to recipient
Status: COMPLETED
settledAt timestamp populated
OUTGOING_PAYMENT.COMPLETED webhook sent

Failure Path:

Delivery failed (invalid account, etc.)
Status: FAILED
failureReason populated
OUTGOING_PAYMENT.FAILED webhook sent
Refund initiated automatically — track via the refund object and OUTGOING_PAYMENT.REFUND_* webhooks

Most transactions on Grid are completed in seconds.

Same-Currency Transfers

For same-currency transfers without quotes:

Transfer-Out (Internal → External)

POST /transfer-out

{
  "source": {"accountId": "InternalAccount:e85dcbd6-dced-4ec4-b756-3c3a9ea3d965"},
  "destination": {"accountId": "ExternalAccount:a12dcbd6-dced-4ec4-b756-3c3a9ea3d123", "currency": "USD"},
  "amount": 100000
}

Response:

{
  "id": "Transaction:...",
  "status": "PENDING",
  "type": "OUTGOING"
}

Follows same lifecycle as quote-based outgoing transactions.

Transfer-In (External → Internal)

POST /transfer-in

{
  "source": {"accountId": "ExternalAccount:a12dcbd6-dced-4ec4-b756-3c3a9ea3d123", "currency": "USD"},
  "destination": {"accountId": "InternalAccount:e85dcbd6-dced-4ec4-b756-3c3a9ea3d965"},
  "amount": 100000
}

Only works for “pullable” external accounts (e.g., debit cards).

Outgoing Payment Status

A single status field represents whether the transaction reached its destination:

Status	Description
PENDING	Quote is pending confirmation
EXPIRED	Quote wasn’t executed before the expiry window
PROCESSING	Executing the quote after receiving funds (checking internal balances, or push/pull to/from external account)
COMPLETED	Payout successfully reached the destination account
FAILED	Something went wrong — accompanied by a `failureReason`

EXPIRED and FAILED are terminal states, but COMPLETED is not always final — a bank can return a payment after it was marked COMPLETED, moving it to FAILED. Always continue processing webhook events for transactions even after they reach COMPLETED.

State Diagram

Refund Object

When a payment fails or is cancelled, refunds are tracked in a dedicated object on the transaction, decoupled from the payment status:

Field	Description
`reference`	Refund reference ID
`initiatedAt`	Timestamp when refund was initiated
`settledAt`	Timestamp when refund settled
`status`	`PENDING`, `COMPLETED`, or `FAILED`
`reason`	Why the refund occurred — `TRANSACTION_FAILED`, `USER_CANCELLATION`, or `TIMEOUT`

{
  "id": "Transaction:019542f5-b3e7-1d02-0000-000000000030",
  "status": "FAILED",
  "type": "OUTGOING",
  "failureReason": "QUOTE_EXECUTION_FAILED",
  "refund": {
    "reference": "UMA-Q12345-REFUND",
    "initiatedAt": "2025-10-03T15:10:00Z",
    "settledAt": "2025-10-03T15:15:00Z",
    "status": "COMPLETED",
    "reason": "TRANSACTION_FAILED"
  }
}

Webhooks

Outgoing payment webhooks use the format OUTGOING_PAYMENT.<STATUS>. The webhook request body contains the full transaction resource.

Event Types

Event	Description
`OUTGOING_PAYMENT.PENDING`	Transaction created, quote pending confirmation
`OUTGOING_PAYMENT.PROCESSING`	Quote confirmed, payout in progress
`OUTGOING_PAYMENT.COMPLETED`	Payout reached destination
`OUTGOING_PAYMENT.FAILED`	Payout failed
`OUTGOING_PAYMENT.EXPIRED`	Quote expired before execution
`OUTGOING_PAYMENT.REFUND_PENDING`	Refund initiated
`OUTGOING_PAYMENT.REFUND_COMPLETED`	Refund settled
`OUTGOING_PAYMENT.REFUND_FAILED`	Refund failed

Example Payloads

PENDING
COMPLETED
FAILED
REFUND_COMPLETED

{
  "type": "OUTGOING_PAYMENT.PENDING",
  "data": {
    "id": "Transaction:...",
    "status": "PENDING",
    "type": "OUTGOING",
    "sentAmount": {"amount": 100000, "currency": {"code": "USD"}},
    "receivedAmount": {"amount": 92000, "currency": {"code": "EUR"}},
    "createdAt": "2025-10-03T15:00:00Z"
  }
}

{
  "type": "OUTGOING_PAYMENT.COMPLETED",
  "data": {
    "id": "Transaction:...",
    "status": "COMPLETED",
    "settledAt": "2025-10-03T15:05:00Z"
  }
}

{
  "type": "OUTGOING_PAYMENT.FAILED",
  "data": {
    "id": "Transaction:...",
    "status": "FAILED",
    "failureReason": "INVALID_BANK_ACCOUNT"
  }
}

{
  "type": "OUTGOING_PAYMENT.REFUND_COMPLETED",
  "data": {
    "id": "Transaction:...",
    "status": "FAILED",
    "refund": {
      "reference": "UMA-Q12345-REFUND",
      "initiatedAt": "2025-10-03T15:10:00Z",
      "settledAt": "2025-10-03T15:15:00Z",
      "status": "COMPLETED",
      "reason": "TRANSACTION_FAILED"
    }
  }
}

Handling Webhooks

app.post('/webhooks/grid', async (req, res) => {
  const { data, type } = req.body;

  switch (type) {
    case 'OUTGOING_PAYMENT.COMPLETED':
      await notifyCustomer(data.customerId, 'Payment delivered!');
      break;

    case 'OUTGOING_PAYMENT.FAILED':
      await notifyCustomer(data.customerId, `Payment failed: ${data.failureReason}`);
      break;

    case 'OUTGOING_PAYMENT.REFUND_COMPLETED':
      await notifyCustomer(data.customerId, 'Refund completed.');
      break;

    case 'OUTGOING_PAYMENT.REFUND_FAILED':
      await notifyCustomer(data.customerId, 'Refund failed. Contact support.');
      break;
  }

  await updateTransactionStatus(data.id, type);
  res.status(200).json({ received: true });
});

Scenarios

Happy Path
Failure with Refund
Failure with Failed Refund
Bank Return
Manual Cancellation

The standard successful payment flow:

OUTGOING_PAYMENT.PENDING
OUTGOING_PAYMENT.PROCESSING
OUTGOING_PAYMENT.COMPLETED

Payment fails and the refund succeeds:

OUTGOING_PAYMENT.PENDING
OUTGOING_PAYMENT.PROCESSING
OUTGOING_PAYMENT.FAILED
OUTGOING_PAYMENT.REFUND_PENDING
OUTGOING_PAYMENT.REFUND_COMPLETED

Payment fails and the refund also fails:

OUTGOING_PAYMENT.PENDING
OUTGOING_PAYMENT.PROCESSING
OUTGOING_PAYMENT.FAILED
OUTGOING_PAYMENT.REFUND_PENDING
OUTGOING_PAYMENT.REFUND_FAILED

If a refund fails, contact support to resolve the issue manually.

Payment initially succeeds but the bank returns it:

OUTGOING_PAYMENT.PENDING
OUTGOING_PAYMENT.PROCESSING
OUTGOING_PAYMENT.COMPLETED
OUTGOING_PAYMENT.FAILED
OUTGOING_PAYMENT.REFUND_PENDING
OUTGOING_PAYMENT.REFUND_COMPLETED

Bank returns can happen days after initial completion. Continue processing webhook events for transactions even after they reach COMPLETED.

Payment is cancelled while still processing, and the refund succeeds:

OUTGOING_PAYMENT.PENDING
OUTGOING_PAYMENT.PROCESSING
OUTGOING_PAYMENT.REFUND_PENDING
OUTGOING_PAYMENT.REFUND_COMPLETED
OUTGOING_PAYMENT.COMPLETED

In the manual cancellation flow, OUTGOING_PAYMENT.COMPLETED fires after the refund settles. This indicates the payout provider ultimately delivered the original payment despite the cancellation attempt. Your system should check the transaction’s refund object to determine whether the payment was refunded or delivered.

Listing Transactions

Query all transactions for a customer or date range:

GET /transactions?customerId=Customer:abc123&startDate=2025-10-01T00:00:00Z&limit=50

Response:

{
  "data": [
    {
      "id": "Transaction:...",
      "status": "COMPLETED",
      "type": "OUTGOING",
      "sentAmount": {"amount": 100000, "currency": {"code": "USD"}},
      "receivedAmount": {"amount": 92000, "currency": {"code": "EUR"}},
      "settledAt": "2025-10-03T15:05:00Z"
    }
  ],
  "hasMore": false,
  "nextCursor": null
}

Use for reconciliation and reporting.

Failure Handling

Common Failure Reasons

Failure Reason	Description	Recovery
`QUOTE_EXPIRED`	Quote expired before execution	Create new quote
`QUOTE_EXECUTION_FAILED`	Error executing the quote	Create new quote
`INSUFFICIENT_BALANCE`	Source account lacks funds	Fund account, retry
`LIGHTNING_PAYMENT_FAILED`	Lightning network payment could not be routed	Retry or use alternative rail
`FUNDING_AMOUNT_MISMATCH`	Funding amount doesn’t match expected amount	Verify amounts and retry
`COUNTERPARTY_POST_TX_FAILED`	Post-transaction processing at counterparty failed	Contact support

When a transaction fails, a refund is initiated automatically. Track the refund via the refund object on the transaction and OUTGOING_PAYMENT.REFUND_* webhook events. See Refund Object above.

Best Practices

Store transaction IDs for reconciliation

Save transaction IDs to your database:

const transaction = await executeQuote(quoteId);
await db.transactions.insert({
  gridTransactionId: transaction.id,
  internalPaymentId: paymentId,
  status: transaction.status,
  createdAt: new Date()
});

Handle idempotency

Use idempotency keys for safe retries:

const idempotencyKey = `payment-${userId}-${Date.now()}`;
await createQuote({...params, idempotencyKey});

Provide clear status messages to users

Translate technical statuses to user-friendly messages:

function getUserMessage(webhookType, data) {
  switch (webhookType) {
    case 'OUTGOING_PAYMENT.PENDING':
      return 'Payment processing...';
    case 'OUTGOING_PAYMENT.PROCESSING':
      return 'Payment in progress...';
    case 'OUTGOING_PAYMENT.COMPLETED':
      return 'Payment delivered!';
    case 'OUTGOING_PAYMENT.FAILED':
      return 'Payment failed. Please try again or contact support.';
    case 'OUTGOING_PAYMENT.REFUND_PENDING':
      return 'Refund in progress...';
    case 'OUTGOING_PAYMENT.REFUND_COMPLETED':
      return 'Refund completed. Funds returned to your account.';
    case 'OUTGOING_PAYMENT.REFUND_FAILED':
      return 'Refund failed. Please contact support.';
    default:
      return 'Payment status updated.';
  }
}

Overview

Core concepts

Outgoing Transaction Flow

Same-Currency Transfers

Transfer-Out (Internal → External)

Transfer-In (External → Internal)

Outgoing Payment Status

State Diagram

Refund Object

Webhooks

Event Types

Example Payloads

Handling Webhooks

Scenarios

Listing Transactions

Failure Handling

Common Failure Reasons

Best Practices

Overview

Core concepts

​Outgoing Transaction Flow

​Same-Currency Transfers

​Transfer-Out (Internal → External)

​Transfer-In (External → Internal)

​Outgoing Payment Status

​State Diagram

​Refund Object

​Webhooks

​Event Types

​Example Payloads

​Handling Webhooks

​Scenarios

​Listing Transactions

​Failure Handling

​Common Failure Reasons

​Best Practices

Outgoing Transaction Flow

Same-Currency Transfers

Transfer-Out (Internal → External)

Transfer-In (External → Internal)

Outgoing Payment Status

State Diagram

Refund Object

Webhooks

Event Types

Example Payloads

Handling Webhooks

Scenarios

Listing Transactions

Failure Handling

Common Failure Reasons

Best Practices