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Processing Withdrawal Management

In this article we will focus on the withdrawal management process, assuming the customer's request for withdrawal and following actions done by the merchant in order to approve the request and send the requested funds. If you are interested in payout or refund transaction flow specifically, pelase refer to the corresponding reference.

General Information

To start with, withdrawal is a process where the merchant is sending the funds back to customer. Withdrawal may be done by payout or refund transaction.

Withdrawal process is a combination of customer's request to receive funds from the merchant, usually by deducting the amount from account balance at the merchant's online service or e-commerce, or by reversal of a payment (purchase) done previously, for ex. in case of cancelled shipping or a return of goods when the quality or contents of the delivery happen to not match the original order. Payout is type of transaction where the merchant is transferring a certain amount to customer's credit card, bank account or e-wallet. On a processing level, the payout is not related to deposit transactions. Payout may optionally be connected to a withdrawal request. Refund is a reversal of the previous payment done by the customer to merchant's account. It's always done to the same payment method (same credit card, same bank account) that has been previously used to make the payment.

PLEASE NOTE: cancelled authorization is not equal to refund. Authorization is a state of transaction, which assumes that the funds have not left the payee's account yet, but instead the transaction amount is locked at the account until the capture has been made, or the authorization has been cancelled to release the funds (funds become available to customer again).

Withdrawal Management

The entire process starts with the customer's request either via cashier or virtual terminal login with intent set to withdrawal.

{danger.fa-exclamation-triangle} IMPORTANT #1: The request itself does not initiate the fund transfer operation, but instead it is registered in the system as the request waiting for merchant's approval. The actual processing will produce the new payout and/or refund transactions.

Once the withdrawal request has been created, further management can be done with Direct API - card payout, apm payout, payout with token or refund.

{danger.fa-exclamation-triangle} IMPORTANT #2: In order to indicate the payour or refund transaction as a fund transfer in terms of withdrawal request processing, please make sure to pass withdrawal_request_id parameter set to tid of an original withdrawal request transaction. Otehrwise the transaction will be registered as a standalone fund transler initiated by the merchant.

Another option to process a withdrawal is using the Atlas merchant dashboard.

When processed using either Direct API or Atlas, the withdrawal request may be processed by the merchant with one or more payout and refund transactions, each - having it's own tid, and withdrawal_request_id equal to tid of the original request.