Transaction Types
Overview of transaction types supported by Nile Pay
Nile Pay supports multiple transaction types to cover the full spectrum of payment flows. Each type has distinct semantics around who initiates the action and the direction of funds.
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 |
transfer | Internal → Internal | Merchant | Movement between Nile Pay accounts |
escrow | Held in trust | System | Funds held pending conditions |
refund | Merchant → Customer | Merchant | Voluntary return of funds |
reversal | System-initiated undo | System | Automatic reversal on failure |
charge | Fee deduction | Platform | Fee applied to merchant account |
chargeback | Forced reversal | Network | Forced reversal by payment network |
Collection
A collection is a payment where funds move from the customer to the merchant. This is the primary transaction type for most use cases including mobile money payments, card payments, and bank transfers.
The merchant initiates 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 the merchant's Nile 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.
Transfer
A transfer moves funds between two Nile Pay accounts without leaving the platform. This is useful for splitting payments, distributing funds to sub-accounts, or internal accounting movements.
Both sender and receiver must have Nile Pay accounts.
Escrow
Escrow holds funds in trust within Nile Pay until specified conditions are met. The funds are not released until all parties fulfill their obligations or a release condition is triggered.
Common use cases include marketplace transactions, milestone-based payments, and secure holds for disputed amounts.
Refund
A refund is a merchant-initiated return of funds to a customer. Refunds are voluntary and processed against an original successful collection.
Refund amounts can be partial or full, up to the original transaction amount.
Reversal
A reversal is a system-initiated undo of a transaction. Reversals occur when the payment provider reports a failure after a successful-seeming status, when a timeout occurs, or when a technical error invalidates the transaction.
Reversals are automatic and happen without merchant action.
Charge
A charge is a fee or deduction applied to the merchant account by the platform. This includes transaction fees, platform fees, or other configured charges.
Charges appear as separate line items on the merchant's account statement.
Chargeback
A chargeback is a forced reversal initiated by the payment network or regulator. This occurs when a customer disputes a charge or when a regulatory authority mandates a reversal.
Chargebacks can occur days or weeks after the original transaction and may include additional dispute resolution processes.