Money Transfer Lifecycle

A transfer as an explicit state machine — reserve, post, clear, settle — with settlement failure and reversal

Money Transfer Lifecycle A transfer as an explicit state machine — reserve, post, clear, settle — with settlement failure and reversal 01 / Transfer phases 02 / Reversal controller 03 / Terminal outcomes Initiated · request accepted · Transfer phases · pending 01 Initiated request accepted pending Funds Reserved · hold placed · Transfer phases · held 02 Funds Reserved hold placed held Posted · ledger entries written · Transfer phases · booked 03 Posted ledger entries written booked Clearing · awaiting settlement · Transfer phases · in-flight 04 Clearing awaiting settlement in-flight Settled · money moved · Transfer phases · final 05 Settled money moved final Reversing · compensating entries · Reversal controller · automatic Reversing compensating entries automatic Reversed · balances restored · Terminal outcomes · terminal Reversed balances restored terminal Failed · settlement rejected · Terminal outcomes · terminal Failed settlement rejected terminal Legend active state waiting terminal success failure / exit

The happy path

  • • Reserve a hold before you commit money
  • • Posting writes balanced ledger entries
  • • Settled is the only truly final success

Holds and reservations

  • • A reservation is not a commitment
  • • An untaken hold releases on its TTL
  • • Available balance excludes active holds

Nothing is deleted

  • • Settlement can still be rejected downstream
  • • A posted transfer is undone by reversal
  • • Reversal appends compensating entries

Lifecycle diagram • Built with Archify • Create yours ↗ • Hover to trace • R route • Click to focus • +/− zoom • M radar • T theme • E export