Payment Exceptions

As cryptocurrency payments are push payments rather than pull payments, Coindirect cannot control when and how much cryptocurrency an end-user is going to send to complete their payment.

Erroneous payments happen mostly because some online wallets that users send their funds from apply some hidden fees to transactions when sending cryptocurrency out.

Some online wallets can also take network fees from the transaction amount instead of adding the network fee amount on top of it. Some wallets (which is quite a rare case though) can batch outgoing transactions so it is not immediately sent from the end-user wallet.

There are basically three payment exception scenarios that need to be considered and handled by merchants:

1. Underpayments

2. Overpayments

3. Late payments

Underpayments

Underpayments happen in case an end-user sends less cryptocurrency that they were requested to.

As it was mentioned above, some online wallets that users keep their cryptocurrency with can take network fees from the transaction amount instead of adding those fees on top of it when sending funds.

So for instanse if a user wants to send 1 BTC from their wallet and the actual network fee size is, say, 0.0001 BTC, the transaction amount sent from the user’s wallet to Coindirect would be 0.9999 BTC.

In such a case, if the user doesn't send the remaining amount of cryptocurrency during the payment window, an invoice status on the Coindirect side will be updated from PROCESSING to UNDERPAID and the entire cryptocurrency transaction amount will be put into the merchant's relevant cryptocurrency wallet on Coindirect by default.

Overpayments

Overpayments happen in case end-users send more cryptocurrency that they were requested to.

It can sometimes be that a user is not that careful when sending funds from their wallet or they can make a typo when entering amount or something.

So if a user was initially requested to send 1 BTC but they send 1.1 BTC instead, this will cause an overpayment exception on the Coindirect side.

In such a case, invoice status on the Coindirect side will be updated from PROCESSING to COMPLETE and the initial invoice amount in fiat will be credited to the merchant’s wallet as normal.

But the extra amount of cryptocurrency received by Coindirect (0.1 BTC) will go into the merchant's relevant cryptocurrency wallet on Coindirect by default.

Please consider the COMPLETE status as the successful one and complete that payment on your side as normal.

Late Payments

This is quite a rare situation when someone sends cryptocurrency after the invoice expires or it is finalized on the Coindirect side already. But this is also the case that needs to be handled.

It basically does not matter how much cryptocurrency is sent - if an invoice is in UNDERPAID, COMPLETE or EXPIRED state, the entire amount of received cryptocurrency will go to the merchant's relevant cryptocurrency wallet on Coindirect.

How to Handle Exceptions

For Over- and Underpayments Coindirect provides two options to handle both.

1. For Underpayments, Coindirect can either automatically recalculate the intire amount of cryptocurrency recieved at the invoice address and credit an updated invoice amount to your fiat wallet or the entire amount of cryptocurrency can be credited to your cryptocurrency wallet instead. In both scenarios the invoice status will be updated to UNDERPAID.

   1. If Coindirect does recalculate Underpayments, the updated amount will be less than the initial one.

   2. If Coindirect does not recalculate Underpayments, the entire amount of cryptocurrency will go to a relevant cryptocurrency wallet on your account with Coindirect.

2. For Overpayments, Coindirect can also either recalculate the intire amount of cryptocurrency recieved at the invoice address and credit an updated invoice amount to your fiat wallet or it can complete the invoice with its initial amount and credit the extra amount of cryptocurrency to your cryptocurrency wallet. In both scenarios the invoice status will be updated to COMPLETE.

   1. If Coindirect does recalculate Overrpayments, the updated amount will be higher than the initial one - please consider this in terms of compliance with your local regilations and your customers' limits on their accounts on your platform.

   2. If Coindirect does not recalculate Overpayments, the invoice will be compelted with its initial amount as normal and the extra amount of cryptocurrency will go to a relevant cryptocurrency wallet on your account with Coindirect.

What Should I Do With Cryptocurrency?

Any amount of cryptocurrency that is credited to one of your wallets on Coindirect can be manually converted to fiat at the spot rate. You can then maually update the customer's balance on your platform.

Alternatively, you can send cryptocurrency back to the sender.

How Do I Configure My MID to Handle Exceptions?

Please reach out to one of our Technical Implementation / Account Management team members to ask them to configure your MID and tell what handling options for both Over- and Underpayments are more prefereable for you.