> ## Documentation Index
> Fetch the complete documentation index at: https://docs.uplifter.app/llms.txt
> Use this file to discover all available pages before exploring further.

# Payment vs. transaction: what's the difference?

> Why an invoice tracks both a payment (money received) and a transaction (the processing record).

<Note>
  **Must know**

  * A **payment** records money received against an invoice; a **transaction** is the underlying processing record, identified by its PSP reference.
  * A card payment (and a bank-debit payment run through the processor, like ACH or pre-authorized debit) creates a transaction. Payments you record as handled outside the platform — cash, check, an account-credit application, or a gift card — create a payment with no transaction behind it.
  * A transaction can be **Authorised** before it's **Settled**, so a **Paid** invoice may still show an **Authorised** transaction until settlement lands.
  * **Refunds** show up as negative amounts in the transaction list.
</Note>

A **payment** and a **transaction** describe money from different angles — but not every payment has a transaction behind it.

A **payment** answers "how much did we receive toward this invoice, and how?" It's the entry that moves the invoice toward **Paid** (or **Partially paid**). Each payment carries a method — card, bank, cash, check, account credit, or gift card — and always settles an invoice.

A **transaction** is the processing record from the payment processor, keyed by a unique **PSP reference**. It carries the technical status of the money as it moves through the processor. Only payments the processor handles have one: an online card payment gets both a payment and a transaction, while a payment you record by hand (cash, check, or bank) or a gift-card redemption creates a payment on its own — there's no transaction to go looking for.

## Transaction statuses

* **Authorised** — the card was approved and the funds are held, but not yet finalized.
* **Captured** — the funds have been claimed and are queued for settlement.
* **Settled** — the funds have been finalized and are on their way to your payouts.
* **Pending** — the transaction is in progress.
* **In Review** — a refund that exceeds your daily refund limit and is waiting on approval before it processes.
* **Refused** — the card was declined.
* **Reversed** — a settled bank refund that the bank later rejected and returned.
* **Cancelled / Error** — the transaction didn't complete.

Because settlement happens a little after authorization, an invoice can read **Paid** while its transaction still shows **Authorised** for a short while — that's normal, and it flips to **Settled** once the processor finalizes it. Refund transactions appear as negative amounts so your totals net out.

**Related:** [How do I search and export my transaction history?](/club/payments-checkout/search-and-export-transactions) · [What do the invoice statuses mean?](/club/payments-checkout/invoice-statuses-explained) · [How payouts work](/club/money-payouts-accounting/how-payouts-work)