# Payout lifecycle Follow a payment from preparation and pricing through confirmation, approval, settlement, delivery, and reconciliation. Product: Payment API Guides follow API reference 0.1.0 and event reference 0.1.0. Canonical page: https://docs.axiym.io/payment-api/concepts/payout-lifecycle A payment starts with the payment details. When you create the payout, Axiym validates the instruction and returns the payment with its commercial terms. You review and confirm it for processing. The payment then proceeds through compliance review, settlement, and delivery to the beneficiary. ```mermaid sequenceDiagram autonumber participant P as Partner participant A as Axiym participant B as Local banking route P->>P: Prepare payment data P->>A: Create payout with payment details A->>A: Apply saved mapping if used, validate, and calculate terms A-->>P: Payment and commercial terms for review P->>P: Review payment details P->>A: Confirm payout A->>A: Check balance and reserve sourceAmount A-->>P: Confirmation response: PENDING A->>A: Compliance review and approval A->>A: Settle reserved amount A->>B: Submit approved local payout B-->>A: Status and final outcome A-->>P: Status and final outcome ``` ## 1. Prepare payment data Prepare the details of the payment: who is paying, who receives the funds, the destination, the amount to send or receive, and the supporting information. The payment is funded from an active Axiym account enabled for payouts. See [Payment details](/payment-api/concepts/payment-details) for the information included in a payment. ## 2. Create the payout Creating the payout submits the complete payment details. Axiym checks that the selected corridor is available and that the amount is within its limits, then validates the data. Axiym calculates the amounts, exchange rate, fee, and expiry time and returns them with the payment in `PENDING_CONFIRMATION`. No funds are reserved at this stage. See [Commercial terms](/payment-api/concepts/commercial-terms). Passing data validation does not constitute payment approval. ## 3. Review and confirmation Review the prepared payment details before confirming the payout. Confirmation authorizes Axiym to process that instruction: it checks the available balance, reserves `sourceAmount`, and starts compliance review. Confirmation is not compliance approval or proof of payment. For the API steps, see [Create and confirm a payout](/payment-api/integration-guide/create-a-payout). ## 4. Compliance review and approval Axiym reviews the payment instruction against compliance requirements and transaction controls to determine whether the payment can proceed. The reserved funds remain unavailable for other payments during review. If the payment is rejected, it does not proceed to settlement or delivery, and the reserved funds are released. ## 5. Settlement After approval, Axiym settles the payment by debiting the reserved amount from the funding account. This covers the payment amount and applicable fees. Settlement records the account debit; it does not yet confirm that the beneficiary has received the payment. ## 6. Execution Axiym submits the approved payment through the local banking route for delivery to the beneficiary. Updates from that route determine the payment's progress and final outcome. A payment can complete successfully, fail, or be returned. A returned payment is not treated as successful completion. ## 7. Tracking and reconciliation Axiym provides status updates and the final outcome. Track the payment until its outcome is known, then reconcile the payment and any resulting account movements against the funding account statement. The operational stages above do not each have a separate API status. Use the returned payout status to track progress: | Status | Meaning | | ---------------------- | -------------------------------------------------------------------------------------------------------- | | `PENDING_CONFIRMATION` | Created with commercial terms and awaiting confirmation. No funds are reserved. | | `PENDING` | Confirmed and awaiting or undergoing execution. | | `HELD` | Temporarily on hold. Continue monitoring; act only if Axiym requests information. | | `COMPLETED` | Delivered successfully. | | `REJECTED` | Rejected and will not complete. Inspect `reasonCode`. | | `CANCELED` | Canceled, including expired unconfirmed terms or a return of funds after delivery. Inspect `reasonCode`. | For implementation guidance, see [Track a payout](/payment-api/integration-guide/track-a-payout) and [Reconcile payouts](/payment-api/integration-guide/reconcile-payouts). ## When a payment cannot proceed | Point in the lifecycle | What happens | | ------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------- | | The corridor is unavailable, the amount is outside its limits, or payment data is invalid or incomplete | The payout cannot be created and no funds are reserved. | | The payment is not confirmed before its terms expire | The payout moves to `CANCELED` with `reasonCode: TERMS_EXPIRED`; no funds are reserved. | | Available funds are insufficient at confirmation | The payout remains awaiting confirmation and no funds are reserved. | | The payment is rejected during review | The payment does not proceed and the reserved funds are released. | | The payment ends before settlement | The reservation is released back to the available balance. | | Delivery fails or the payment is returned | Review the reported outcome and reconcile any resulting account movements. | ## Changes and expiry Review the payment details before confirmation. A material correction requires a new payout with valid commercial terms. An unconfirmed payout expires automatically if it is not confirmed in time. For preparing payment data before submitting a payout request, see [Prepare payment data](/payment-api/integration-guide/prepare-payout-data).