Software Design

Payment Gateway Transaction States

State Diagrams · made in Skemio

State diagram showing payment lifecycle from Created to Authorized, branching to Captured and Settled or Voided, with failure handling.
State diagram showing payment lifecycle from Created to Authorized, branching to Captured and Settled or Voided, with failure handling.
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What it shows

  • Authorization holds customer funds; capture triggers actual bank transfers.
  • Voids cancel held authorizations instantly with zero credit processing fees.
  • Failed authorizations must terminate immediately without hitting capture.

The takeaway

Separate authorization from capture to protect transactions from duplicate fees and settlement races.

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