A payment order is an instruction from a payer or payee requesting a payment service provider to execute a transfer of funds. Its required data, authorization, revocability, and legal effect depend on the payment method, provider terms, system rules, and applicable law.
Quick reference for Payment order
| Check | What it means for the transaction |
|---|---|
| Category | Global B2B payment operations |
| Record to keep | Keep the instruction, party and account identifiers, validation result, timestamps, institution references and reconciliation outcome. |
| Do not infer | Initiation, processing, clearing and settlement are different events. One status should not be used as proof of another. |
Payment order and nearby terms
- Payment initiation: Payment initiation is the creation and submission of an instruction asking a payment service provider or financial institution to transfer funds.
- Payment authorization: Payment authorization is the approval that permits a payment instruction to proceed.
