When working with Paynetics' products and services, it is essential to understand the key building blocks that underpin the architecture and operation of the system. The following terms form the core structure used throughout Paynetics’ solutions.
Instance
An Instance represents a logically separated environment within Paynetics' infrastructure, typically assigned to a specific partner or organization. The API credentials you will receive will be linked to your instance.
Each instance is isolated, ensuring that the merchants, payment products, accounts, and transaction flows within one instance do not overlap with those of another.
Partners operate under their own unique instance, which provides data segregation and customized configuration specific to the partner’s business model.
During the implementation phase we will create a Sandbox instance for you where you can implement and test your solution and move to your live instance once the onboarding has been completed and your solution validated.
Program
Programs define how your accounts and cards function, including currencies, IBAN setup, and card behavior. Each account must be linked to a program using a program code, which is provided during onboarding.
Programs control both account-level settings (like supported currencies, IBAN generation, and virtual account setup) and card-level settings (such as enabling virtual/physical cards, Apple/Google Pay, transaction limits, fees, and usage restrictions). These defaults can be customized per card via API.
Account
An Account in Paynetics' system refers to a payment or e-money account. An account must be linked to a user or a merchant.
Types of accounts:
Payment Account: Used for executing transactions like card payments, top-ups, and transfers
Funding Account: Used for pre-funding specific services like OCT transactions.
Settlement Account: The account where settlement payouts are made to merchants.
One account can have multiple balances.
Balance
Balance holds the available amount of funds within an Account in a specific currency. It can sound counterintuitive, but Balances, not Accounts, have IBANs (in case currency is EUR and BNG) and Account numbers (in case of GBP),
All transaction operations (payouts, top-ups, fee collections) reference the balance token to ensure funds availability.
Each account has a unique balance token used in API calls for accurate identification.
Merchant
A Merchant is a business entity which can have accounts, cards, accept payments via acquiring.
Manual onboarding is only suitable when you’re dealing with a small number of merchants, and building an API integration isn’t worth the effort. For example, if you plan to onboard around 10–15 merchants per month, using the API wouldn’t be practical—there’s simply not enough volume to justify the integration work. In such cases, manual onboarding is the better option.
Each merchant is associated with one or more accounts and must comply with Paynetics' underwriting and scheme-specific approvals for services like OCT and AFT
Application
An Application represents the onboarding request for a merchant or payment service setup in the Paynetics system.
Captures key details: merchant information, supported payment types, settlement currencies, and requested services.
Submitted via API or manually through the partner portal.
Required for creating merchant profiles, funding accounts, and enabling payment processing.
Generates an application token used to track and reference the onboarding process.
The application must be approved by Paynetics before the merchant can start processing transactions. Multiple applications can be submitted for different merchants or services.
Transaction Types
Transaction types define the specific payment, transfer, or payout operation being executed. The correct transaction type must always be specified in API calls to ensure accurate processing and proper fund routing.
Common transaction types include:
Authorization: The merchant blocks the amount equal to the purchase. No funds are actually deducted from the account at this stage.
Presentment: The capture of the previously authorized amount. Presentment can only occur after a successful authorization.
Reversal: The release of the blocked funds from an authorization before presentment occurs. Reversals can be full or partial.
Refund: The return of funds after a presentment has been completed. Refunds can also be partial.
Internal Transfer: The movement of funds between two accounts within the same Paynetics instance.
Wire Transfer: An electronic transfer of funds executed via a network administered by banks and transfer service providers worldwide.
Load: The process of transferring funds from an external account to a Paynetics account.
Fee: A transaction that applies a fee, either related to a transfer, card issuance, or other scenarios agreed upon between the partner and Paynetics.
OCT (Original Credit Transaction): A transaction that sends funds directly to a cardholder’s account. Unlike a purchase, which debits an account, an OCT credits the cardholder’s account. This is typically used for payouts, such as winnings or refunds to cards.
Tokens
In the Paynetics platform, tokens are unique identifiers used to securely reference objects within the system without exposing sensitive information.
Tokens are assigned to key entities such as:
Accounts
Balances
Cards
Merchants
Transactions
Using tokens in API operations ensures that each object is clearly and securely identified. Tokens are required in requests to specify which account, balance, card, or merchant the operation relates to. This approach:
Protects sensitive data by avoiding the direct transmission of raw account or card details.
Ensures that API requests always target the correct objects.
Enables consistent and secure handling of payment flows across the system.
For example:
The Balance Token is used to identify which balance will be debited or credited during a transaction.
The Card Token identifies a specific card used in payments or payouts.
The Merchant Token represents the specific merchant involved in a transaction.
Tokens are required parameters in most API calls to guarantee precise routing and execution of operations.
Partner
A Partner is the entity that integrates Paynetics’ services and offers them to its end customers.
Partners have their own instance.
Can be responsible for merchant management, user onboarding, and in some cases, KYC processing.
Partners can customize fees, programs, and user flows based on their contractual agreement with Paynetics.