Transaction Types
The transaction types you can create and how each one moves money
We support multiple transaction types to cover the payment flows you can create. Each type differs in who starts it and which way the money moves.
Quick Reference
| Type | Direction | Initiator | Description |
|---|---|---|---|
collection | Customer → Merchant | Merchant | Money received from a customer |
payout | Merchant → External | Merchant | Money sent to an external party |
refund | System-internal | System | Internal return of funds |
reversal | System-internal | System | Internal reversal on failure |
charge | Customer → Merchant | Merchant | Legacy collection label (legacyType on webhooks) |
chargeback | System-internal | System | Internal reversal by payment network |
Collection
A collection is a payment where funds move from the customer to you. This is the primary transaction type for most use cases including mobile money payments, card payments, and bank transfers.
You initiate the collection by creating a transaction and providing customer details. The customer then completes payment through their preferred method.
Payout
A payout moves funds from your Nylon Pay balance to an external party. Use this for disbursements, supplier payments, or any scenario where money leaves the platform.
Payouts require destination details (bank account, mobile money wallet) and are subject to provider availability and limits.
Refund
A refund returns funds to a customer. We create refunds and record them in your transaction history.
Reversal
A reversal undoes a transaction automatically. We create one when a provider reports a failure after a successful-seeming status, when a timeout invalidates a transaction, or when a payout fails after its amount was deducted. It appears in your transaction history.
Charge and Platform Fees
charge is the legacy type label for collections. Webhooks for collections send type: "collection" alongside legacyType: "charge".
Platform fees appear as separate platform_fee line items on your account statement.
Chargeback
A chargeback is a reversal forced by the payment network or a regulator. It appears in your transaction history.