Payment Orders

As payment orders progress through their lifecycle, Modern Treasury will send webhooks to convey their latest statuses. The message body will include both an event and a data representation of the payment order. When there is an error, it will also be included. See the status codes section for additional details on how errors are presented.

Payment Order Events

These are the events you may receive:

Event

Description

created

A payment order has been created. This happens when the Async Create Payment Order endpoint is used.

failed

A payment order failed to be created. This happens when the Async Create Payment Order endpoint is used.

You can simulate failed payment orders here.

You may redraft a failed payment order by using the Update Payment Order endpoint.

approved

A payment order has been approved.

denied

A payment order has been denied.

cancelled

A payment order has been cancelled.

begin_processing

A payment order has begun processing. Payment orders will no longer be editable after this point.

finish_processing

A payment order has finished processing and been sent to the bank.

tentatively_reconciled

A payment order has been tentatively reconciled to a pending transaction. This can be helpful to process if you are confident the transaction will post. See the guide for more information.

Does not change the payment order's state.

completed

A payment order has been reconciled with a posted transaction.

returned

A payment order has been returned. You may redraft the payment order by using the Update Payment Order endpoint.

reversed

A payment order reversal has been sent.

nsf_deferment

This only applies for payment orders that are using NSF Protection. If the counterparty's balance is insufficient to cover the payment order, or if there is an error from Plaid while retrieving the balance, this event is sent. This means that the payment order was not sent to the bank and is still in the approved state.

nsf_plaid_error_but_processing

This only applies for payment orders that are using NSF Protection. This event can only be fired if your NSF Protection settings have opted you into initiating the payment orders even when the Plaid check has failed.
When this event fires, it means that we were unable to pull the counterparty's balance from Plaid but still sent the payment order the bank.

Payment Order Statuses

10371037

Payment Order Lifecycle with Webhooks

Payment orders have many states, which may also be sent as webhook events based on your configuration. You can find the full list of payment order states below.

Status

Description

needs_approval

The payment order needs at least one approval before it can be sent to the bank. Note that if the effective_date on the payment order has been passed but the payment order isn't approved yet, it will be sent to the bank at the earliest time after it is approved.

approved

The payment order has been approved and will be sent to the bank.

processing

This is a very short state where Modern Treasury is preparing the payment order to be sent to the bank. Once it begins processing, it cannot be edited anymore.

sent

The payment order has been sent to the bank. It may remain in this state for up to a few days, depending on the type of payment.

completed

The payment order has been reconciled to a posted bank transaction. At this point, we know the payment occurred, and your account will have been debited or credited.
Note however, that some payment types are not final. For an ACH, you may still get a return later.

returned

The payment order has been returned. There is typically an associated Return object with more information.

reversed

The payment order has been reversed. There is typically an associated Reversal object with more information.

failed

This status is rare but may happen if there is an error at the bank. It can also happen when using the asynchronous create API endpoint, if the parameters are invalid.
Note that the lifecycle diagram below only shows an arrow to the failed state down the asynchronous create path.
If a failure is associated with a vendor (e.g. Currencycloud), a vendor_failure_reason may be provided.

denied

The payment order has been denied. This is a terminal state. This state is reached if a payment order in needs_approval was denied by an approver.

cancelled

The payment order was cancelled. This is a terminal state.

Sample Events

Successful event

{
  "event": "created",
  "data": {
    "id": "fd3c1f59-6d5b-466c-9126-7f8c82ad6e1c",
    "type": "ach",
    ...
  }
}

Event with errors

{
  "event": "failed",
  "data": {
    "id": "fd3c1f59-6d5b-466c-9126-7f8c82ad6e1c"
  },
  "errors": {
    "code": "parameter_invalid",
    "message": "amount is invalid",
    "parameter": "amount"
  }
}

Error from vendor

{
  "event": "failed",
  "data": {
    "id": "4897da42-7abd-464e-ab57-d4bf13f49aa0",
    "vendor_failure_reason":"Following payer details are missing: payer_postcode"
  }
}

Completed Payment Order

{
  "event": "completed",
  "data": {
    "accounting_category_id": null,
    "amount": 123100,
    "charge_bearer": null,
    "counterparty_id": "928db55e-6552-4aaf-96d7-10c693922b1f",
    "created_at": "2019-12-12T22:27:22Z",
    "currency": "USD",
    "description": null,
    "direction": "credit",
    "effective_date": "2019-12-13",
    "foreign_exchange_contract": null,
    "foreign_exchange_indicator": null,
    "id": "9f7e0efa-aeb7-4378-ae18-b4bb038e5495",
    "metadata": {},
    "object": "payment_order",
    "originating_account_id": "b9fc1ae0-d493-4f01-a7b3-b39104e802b5",
    "priority": "normal",
    "receiving_account": {
      "account_details": [
        { ... },
      ],
      "account_type": "checking",
      "created_at": "2019-11-21T22:51:04Z",
      "id": "71fae619-afa6-45e6-8630-ce4d0b3d6387",
      "intermediate_account_id": null,
      "object": "external_account",
      "party_address": null,
      "party_name": "John Smith",
      "party_type": null,
      "routing_details": [
        { ... },
      ],
      "updated_at": "2019-11-21T22:51:04Z",
      "verification_status": "unverified"
    },
    "receiving_account_id": "71fae619-afa6-45e6-8630-ce4d0b3d6387",
    "receiving_account_type": "external_account",
    "remittance_information": "December Rent",
    "statement_descriptor": "Rent",
    "status": "completed",
    "transaction_ids": [],
    "type": "ach",
    "transaction_monitoring_enabled": false,
    "decision_id": null,
    "updated_at": "2019-12-12T22:27:25Z"
  }
}