Payment initiation is the creation and submission of an instruction asking a bank or payment provider to transfer funds. The instruction identifies the payer, Recipient, amount, currency and account details. It may also include a payment purpose, invoice reference and requested execution date.
Initiation creates the instruction
- The payer selects an approved Recipient.
- The amount and currency are entered.
- The payment route or method is selected.
- Supporting references are attached or recorded.
- The instruction moves to authorization or provider review.
Initiated does not mean paid
An initiated instruction can still wait for business approval, funding, compliance checks, a cut-off window or provider acceptance. It can also fail validation. Finance should not close an invoice merely because the payment was created.
| Milestone | What it proves |
|---|---|
| Created | Instruction exists |
| Authorized | Required approval was given |
| Accepted | Provider accepted it for processing |
| Settled or credited | Completion evidence exists at the defined level |
Check the instruction before it enters the queue
- Recipient legal name and Bank details
- Invoice currency and amount
- Payment purpose and reference
- Fee and FX information
- Requested date and cut-off time
In Quotable Payments, initiation should connect the instruction to its invoice, Recipient and supporting record. That makes the payment reviewable; authorization and provider acceptance still have to happen.
