Charge statuses

Charges move through the following statuses from creation to final result.

Status	Description
`verification_in_progress`	Penny validation is checking the instrument’s ownership. The charge waits for the result.
`pending`	The charge has been created and accepted by the platform. It is queued for submission to the banking network at the next processing cutoff.
`processing`	The charge was included in a file sent to the bank. It is waiting for the bank’s response.
`confirmed`	The banking network has confirmed the charge. The amount has been collected from the customer’s account.
`declined`	The banking network declined the charge. No funds were collected. See the `declined_reason` and `declined_reason_rail` fields, or the Error Codes reference for details.
`canceled`	The charge was canceled before it was sent to the bank, for example by penny validation or the risk engine.
`chargeback`	A previously confirmed charge has been reversed by the customer’s issuing bank. The amount has been deducted from the merchant’s balance. Delivered via a `charge_result` webhook event with `charge_result: "chargeback"`.

Status flow

Charge status flow

verification_in_progress  (only when penny validation runs)
   ├── pending
   │     ├── processing
   │     │     ├── confirmed
   │     │     │     └── chargeback
   │     │     ├── declined
   │     │     └── chargeback
   │     └── canceled
   └── canceled

These are the only transitions. declined, canceled and chargeback are final. A confirmed charge can still become chargeback. Charges can’t be canceled through the API.

Instrument statuses

Status	Description
`verification_in_progress`	Penny validation is running. The instrument can’t be charged yet.
`active`	The instrument is available for use in charge requests. It is `active` when penny validation returns `matched`, or right away when penny validation is not enabled for your organization.
`errored`	Penny validation returned any result other than `matched`. The instrument can’t be charged.
`inactive`	Reserved. The platform does not set this status today.

A charge on an instrument that is not active is rejected with 400 and instrument_in_invalid_state. See Penny validation.

Instrument ownership verification

The ownership_verification_result field reflects the outcome of penny validation.

Value	Description
(null)	Penny validation has not yet completed, or did not run.
`matched`	The account holder matches the customer. The instrument becomes `active`.
`no_match`	The account holder does not match the customer.
`errored`	The validation could not be completed.
`account_canceled`	The bank reported that the account is canceled.
`account_does_not_exist`	The bank reported that the account does not exist.

Every value other than matched makes the instrument errored, and it can’t be charged. The instrument_ownership_verification_result webhook event is sent when penny validation completes.

account_canceled and account_does_not_exist are returned by the service but are not yet in the OpenAPI VerificationResult enum.

Risk status

Charges also carry a risk_status:

Value	Description
`pending`	The risk engine has not evaluated the charge yet. This is the value when a charge is created.
`ok`	The risk engine approved the charge.
`cancelled_by_risk`	The risk engine blocked the charge, and it is `canceled`.

The API returns the stored value, which can also be null on older charges. Webhooks only report ok or cancelled_by_risk. See Webhook events.