Overview

sequenceDiagram
    participant lms as Merchant/LMS
    participant api as FLEX API / CORE
    participant net as Payment network
    participant card as Recipient Card

    critical Verification
        lms->>api: 1. Request Token
        api->>lms: 2. Token Verified + Sent Back
        end

    lms->>api: 3. Post transaction
    api->>net: 4. Validate + forward payment
    net->>card: 5. Deliver funds
    net-->>api: 6. Settlement confirmation
    api-->>lms: 7. Status update (success or failure)

InstaPay Transaction Example

InstaPay refers to the real-time or near-real-time payments that are processed via card networks or closed-loop systems. These payments are designed for instant disbursements like loan payouts, refunds, or gig worker earnings.

This lifecycle guide walks through the flow of an InstaPay transaction from your LMS through our API.

Typical Use Cases

• Real-time loan funding
• Urgent disbursements to verified UserProfiles
• Gig economy payouts

Step 1: Prepare Card details

Before initiating a transaction, the borrower’s debit card must be securely captured and/or tokenized. Depending on your setup, this may involve:

• A card tokenization step (e.g., using PCI-compliant tools)
• Pre-enrollment or eligibility checks (some providers restrict eligible card types)

Instruction for this processes can be found here.

Step 2: LMS Creates InstaPay Transaction

Model:

flowchart TD
    merchant[Merchant/LMS]
    api[FLEX API / CORE]

    merchant-->|Post transaction|api

LMS creation of transaction is done through API calls.

Instruction on this process can be found here.

Step 3: Payment Sent to network

Model:

flowchart TD
    api[FLEX API / CORE]
    pay[Payment Network]
    bank[Bank]

    api-->|Validate + forward payment|pay
    pay-->|Deliver funds|bank

Behind the scenes:

• The API forwards the transaction to a real-time payment network
• The network routes the payment to the recipient’s bank/card issuer
• Most InstaPay networks complete the transfer in under 30 seconds

Step 4: Monitor Outcome

Model:

flowchart TD
    merch[Merchant/LMS]
    api[FLEX API / CORE]
    pay[Payment Network]
    
    pay-. Settlement confirmation .-> api
    api-. Status update .-> merch

Your LMS can track status via polling. Instructions can be found here Transaction will resolve to one of the following:

• S: Funds confirmed delivered
• F: Payment rejected or undeliverable

Step 5: Retry or Fallback (if Needed)

InstaPay cannot be voided, and retries should be handled carefully.

If a transaction fails:

• Evaluate the failure_code to determine cause
• Do not retry immediately, especially for hard rejections like INVALID.