This guide will give you a reference point to understand:
- How payments work - the payments lifecycle.
- Account structure and user management.
- Manage payments.
- Reports and reconciliation.
How payments work – the payments lifecycle
Once a shopper enters their payment details, a payment goes through different stages. These stages define the state of the payment during the lifecycle of a transaction. The status of a payment indicates how likely it is that the merchant receives the money from the shopper. This information can then be used for the reconciliation and setting the shipment date of physical goods.
Registration of a validated payment attempt. This is the initial state for all payments.
The payment is approved by the financial institution. This state serves as an indicator to proceed with the delivery of goods and services.
|Settled||The financial institution has transferred the funds to Adyen. These settled transactions will be transferred to your bank account in batches.|
|Refunded||The financial institution has completed the reimbursement to the shopper.|
|Refused||The payment was declined by the financial institution. The payment is also refused if the fraud score exceeds 99 points.This is a final state.|
|Chargeback||The reversal of a charge against a cardholder's account initiated by the issuing bank.|
For information on Adyen payment statuses, as well as details on payments capture and dispute, go to Payments lifecycle.
Account structure and user management
Adyen Account Structure (company account/merchant account)
When you create an account on the Adyen system, the email address you used is linked to a company-level account. This account holds all your processing accounts, users, skins for the payment pages, and payment method fees.
Your payments are processed in sub-accounts, also called merchant accounts. Merchant accounts have their own notification settings (which differ from the company level), financial reports, risk management settings, and so on. One company account can have one or more merchant accounts. You can control the number of merchant accounts.
For instance, you might create separate merchant accounts to:
- Support different business models.
- Accept payments in different currencies or regions.
- Have separate integrations for ecommerce/in-app and point of sale.
- Separate affiliates and entities within your organizational structure.
If you would like to add a new merchant account to your company account, you can do this in the Customer Area. Click on Accounts > Merchants > Request new merchant account.
The Customer Area includes a user permissions management system with description to all user roles. As a merchant, you can setup different permissions for the Customer Area from Settings > Users. As a system admin, you can assign various roles to users within your organization and specify the merchant account(s) the user should have access to. You can find out more about User roles here.
Look up a payment
For an overview of your payments, go to Payments in the Customer Area. You can then click a PSP reference (a unique 16-digit reference number created by Adyen for each transaction) to see more details of the payment, or filter the results. This page is called Payment Details.
In order to lookup a specific payment, use the search function in the top of the screen. Payments can be found using the PSP reference, merchant reference, bank/credit card account number or shopper email address.
There are two ways to search for a payment via credit card details:
- Full credit card number - Go to Payments > Method and set a filter. Then enter the card details without any spacing in the Set a Filter on Card/Account number field and Click Submit.
Last four numbers of the credit card number - Go to Payments > enter last 4 digits of credit card number in search for payments.
Both methods provide a list of all transactions made by the submitted card number.
Refund a payment
A refund may be submitted through Payments > select a PSP reference > Operations. Enter the amount to be refunded in Submit refund request box and click Send Refund.
When performing a refund, the amount is credited directly back to the shopper (or a bank transfer for local payment methods). You can only refund up to the total amount captured, so this can be one refund of the full amount or multiple partial refunds as long as the total amount does not exceed the amount captured on the payment. Please note that not all payment methods accept partial refunds - for the full list see Payment methods overview. It should take two working days for funds to be deposited to the shopper's bank account.
Check if 3D Secure has been applied
On the Payment Details page, you can view the processing details of a payment. Here it also shows if 3D Secure was applied, and if a liability shift occurred. A green check means that the shopper passed the 3D Secure authentication. A yellow dash also means the shopper passed 3D Secure authentication, and set up their 3D Secure credentials with this transaction. If there is a green check against Liability Shift, it means the issuing bank will be responsible for the financial risk if a chargeback occurs.
Adyen provides a fraud management system, RevenueProtect, which assigns risk scores to a wide range of criteria to determine whether a payment may be fraudulent. If the total score is 100 or more, the payment is refused. The fraud score for a payment can be found both on the Payment List and Payment Details.
If a shopper wants funds returned from a merchant, they can ask a merchant to make a refund. If the merchant refuses, a shopper may ask their issuer to perform a chargeback, which results in the funds being taken back from a merchant and given back to a shopper.
In the Customer Area, chargebacks can be disputed. For information on how to manually dispute chargebacks, refer to the Payment dispute section, and to know more about chargebacks, read our chargeback guidelines.
Adyen's auto-defense system automatically disputes selected chargebacks with no action needed on the part of the merchant. These select chargebacks include:
1. Already refunded transactions (in which the refund occurred before the chargeback was submitted).
2. Situations in which there is a liability shift.
3. Chargebacks that include technical errors that invalidate them (such as when a chargeback is submitted outside of the timeframe allowed by the schemes).
Reports and reconciliation
The settlement detail report is the recommended report to reconcile your payments. Adyen bundles individual transactions in a batch settlement to the bank account configured on your merchant account. It includes all payments that are settled (paid out to your bank account by Adyen), plus chargebacks, refunds, and more. You can see a complete list of Journal types.
This settlement detail report reports on a transaction level. It is generated with the settlement batches to sort out which transactions that went through Adyen were settled to your bank account.
Transactions done over external acquiring, for example external AMEX acquiring or PayPal, are reported in the external settlement detail report that is available under your company account (not your merchant account) in the Customer Area.
You can subscribe to the reports for automatic generation by navigating to the Customer Area, Merchant account > Reports > [Report you want to be generated] > Subscribe.
It is highly recommended to subscribe to the settlement detail report.