In payment processing, payments are often not sent directly from one bank to another on a one-to-one basis. Instead, they are first held and bundled before being exchanged in batch processing at specific times between banks and payment service providers. An updated payment refers to changes that occur in a payment while it is still being processed but has not yet been completed.
A payment may be updated for various reasons, including but not limited to:
- The transaction is canceled. For example, in a physical payment, the "stop" button is used during payment, or the card is removed from the terminal. In an online payment, the transaction is canceled while being processed. It can also happen that a product cannot be delivered, leading to the transaction being canceled after a few days.
- The transaction has expired. This typically occurs with online payments. The card details are entered, but the payment is not completed on time and is automatically terminated. In a physical payment, the card is inserted into the terminal, but the transaction is not completed within the required time.
- A reservation is made (for example, a payment at an unmanned gas station or a hotel deposit), and the amount is later adjusted. At a gas station, a standard reservation of €200 is made, but the actual amount for refueling is deducted later.
The above and other reasons can result in one of the following scenarios in Spend Cloud:
Payment canceled
The transaction has not been processed, and no amount has been deducted. It may take a few days for the booking to be corrected. The entry is removed or the amount is adjusted, and no further action is needed. If the period of the initial entry is closed, a correction booking is created in the next open period, which must be coded.
Payment partially canceled
Part of the payment has been reversed. In some cases, the amount of the original entry is adjusted, requiring no further action. If this is not possible, for example, because the period of the original booking is closed, a new correction booking is created, which must be coded.
Payment expired
The transaction was not completed in time and was automatically canceled. A correction booking is usually created, which may take some time but no more than 30 days. If the period of the original entry is closed, a correction booking is made in the new period, which must be coded.
Payment adjusted
The payment has been modified, for example, in terms of amount or recipient. The amount of the entry is adjusted, and sometimes a new correction booking is created, which must be coded.
Payment (partially) refunded
The full or partial amount has been refunded. Usually, a new booking is created, but in exceptional cases, the original booking may be corrected. If the amount in the original booking has been corrected, no action is needed. If a new correction booking has been created, it must be coded.
Liable card owners, or
cardmanagers if there is no liable card owner, will receive a message when an entry has been updated due to one of the above reasons.