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Voided payments – why do they happen?
Voided payments – why do they happen?

Explains why Voided payments happen

Laura from Montonio avatar
Written by Laura from Montonio
Updated this week

Understanding Voided Payments

Open Banking Payment Initiation Services (PIS) offer a cost-effective way to process payments, but they come with challenges. Many banks handle payment statuses differently and sometimes take hours to mark payments as completed. Montonio confirms payments much faster than banks could, but this comes with the small risk of payments getting canceled after confirmation.

The challenges of Open Banking payments

There are a few challenges when it comes to PSD 2 bank payments:

  • Slow processing times – Some banks take hours to confirm payments, which can delay order processing.

  • Inconsistent bank behavior – Each bank has its own way of handling Open Banking payments, making it difficult to predict how transactions will be processed.

  • Confusing payment statuses – There are more than 15 different payment statuses used by banks, and they interpret them in different ways. This makes it hard to know whether a payment has actually gone through.

However, hours-long processing times and inconsistent bank behavior are not acceptable in e-commerce. Montonio takes a novel approach to tackle these challenges and provide instant payment confirmations with high conversions.

How Montonio’s Smart Status Engine solves these problems

To fix these issues, Montonio has developed a Smart Status Engine that ensures businesses get reliable payment information in real-time. Here’s how it works:

  • Faster status updates – Instead of waiting hours for banks to confirm payments, Montonio determines if a payment is "Paid" or "Canceled" within seconds.

  • Smarter analysis – We look at factors like the time of day, payment type, country-specific rules, and bank infrastructure to predict payment outcomes accurately.

  • Proven reliability – Our system is based on data from millions of transactions, ensuring that our status updates are as accurate as possible.

This allows us to provide our merchants with a seamless payment flow in their online stores. In some very rare cases, Montonio might mark as payment as "Paid", but the bank later still decides to cancel it. In this case, the payment transitions to a "Voided" status, effectively canceling the payment.

Why do payments get voided?

When a payment is voided, Montonio immediately notifies the merchant via email with details to help verify the status before fulfilling the order.

In rare edge cases, a payment initially marked as "Paid" by Montonio may later be voided by the bank. This typically occurs due to:

  • Fraud or AML suspicions: The bank may flag and stop a transaction if it detects potential fraudulent activity or compliance concerns.

  • Technical issues: Temporary technical glitch in the bank's system.

Read more about what to do in case of a Voided payment here.


If you have additional questions and need our help, feel free to contact our support team via the chat in the bottom right corner.

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