Payment processing refers what happens after a user makes a payment. Processing here refers to Assembly’s interactions with the users’ banks behind the scenes, and the workflow that the funds go through.
When a user makes a payment on your platform, this doesn’t mean that the funds have automatically cleared the bank. Assembly processes payments in batches. Each transaction gets included in a batch. Collectively and in our documentation, this is called the batch, or batch transactions.
Note: Batch processing typically applies to direct debit and direct credit payments. Credit card payments are applied instantly.
While item states track what has happened to an item on your platform so far, a batch transaction state tells you what has happened to the funds for that item.
Batch processing can be divided into two workflows: pay-in and pay-out.
While we give our buyers the peace of mind by confirming their payments, this does not mean that we receive the actual funds immediately. We can consider pay-ins as funds receivable until it has cleared the buyer’s bank. Meanwhile, we pay the seller using Assembly’s funds. These amounts reconcile upon successful bank processing, usually after 3 days.
Pay-in workflows track the funds paid from a buyer’s account into the Assembly vault. Upon a successful payment, Assembly applies funds to the seller’s digital wallet while waiting for the seller’s bank to clear the direct debit transaction.
The pay-in workflow ends when the funds successfully clear the buyer’s bank into Assembly’s vault.
While we give our sellers the peace of mind by applying payments to their digital wallets, this does not mean that the funds are available for disbursement immediately. We can consider pay-outs as funds payable until it has been applied by the seller’s bank. The funds become available upon successful bank processing, usually after 3 days.
Pay-out workflows track the funds paid out from the Assembly vault to the seller’s account. After a successful pay-in batch, Assembly proceeds to credit the funds to the seller’s bank account (called disbursement account).
The pay-out workflow ends when the funds successfully clear Assembly’s vault into the seller’s bank account.
The following flowchart illustrates a typical batch process, showing the pay-in and pay-out phases for Australia and New Zealand (ACH payments in the US take 2 business longer in and out).
1 Payments made after 10:00pm UTC (2:00 p.m. AEST / 3:00 p.m. AEDT) are processed the next day.
2 Payments in Australia and New Zealand clear after three business days, payments in the US clear after 5. Actual processing time can vary.
Our batches run twice daily (excluding non-processing days), at the following times:
- 10:00pm UTC (8:00 a.m. AEST / 9:00 a.m. AEDT)
- 4:00am UTC (2:00 p.m. AEST / 3:00 p.m. AEDT)
In the pre-live environment, the batches are exported every 30 minutes and you will receive a webhook update indicating the "exported" state of the batch and its transactions.
Domestic transfers usually clear within 1-2 business days, while international transfers can take up to 5 business days. Slow-to-pay countries may take longer.
Note that a payment undergoes both a pay-in batch and a pay-out batch. Thus, a complete payment workflow can last up to 10 days.
Bank holidays and other non-processing days like weekends also affect timeframes.