Data Model - Trade Type

Trade Type Overview

The Trade Type data model defines the structure for transaction type classification. This model encapsulates pay-in and pay-out differentiation for transaction processing.

Trade Type Definitions

Trade Type	Code	Description
Pay-In	1	Collection transaction where funds are received from customers Usage: Payment processing, order fulfillment, revenue collection Examples: E-commerce payments, service fees, subscription charges Direction: Customer → Merchant
Pay-Out	2	Disbursement transaction where funds are sent to recipients Usage: Refunds, salary payments, vendor payments, cash withdrawals Examples: Refund processing, payroll disbursement, supplier payments Direction: Merchant → Recipient

Transaction Flow Patterns

Pay-In Transaction Flow

Customer → Payment Method → Smilepayz → Merchant Account

• Initiation: Customer initiates payment for goods/services
• Processing: Payment method validation and fund collection
• Completion: Funds credited to merchant account
• Settlement: Merchant receives funds according to settlement schedule

Pay-Out Transaction Flow

Merchant Account → Smilepayz → Payment Method → Recipient

• Initiation: Merchant initiates disbursement to recipient
• Processing: Recipient validation and fund transfer
• Completion: Funds debited from merchant account
• Delivery: Recipient receives funds via specified payment method

Implementation Examples

{
  "tradeType": 1,
  "orderNo": "200110edbb466abb04682968b40",
  "amount": 20000,
  "currency": "COP"
}

{
  "tradeType": 2,
  "orderNo": "2000102900000000000001",
  "amount": 20000,
  "currency": "COP"
}

Business Use Cases

Pay-In Applications

• E-commerce: Online store payment processing
• Service Payments: Subscription and recurring payments
• Donations: Charitable contribution collection
• Tickets: Event and transportation ticket sales

Pay-Out Applications

• Refunds: Customer refund processing
• Payroll: Employee salary disbursement
• Vendor Payments: Supplier and contractor payments
• Cash Withdrawals: Merchant account withdrawals

Processing Characteristics

Pay-In Processing

• Real-Time: Most pay-in transactions process in real-time
• Confirmation: Immediate payment confirmation for customers
• Settlement: Funds settled to merchant according to SLA
• Reconciliation: Automatic transaction reconciliation

Pay-Out Processing

• Batch Processing: Many pay-out transactions processed in batches
• Verification: Enhanced recipient verification requirements
• Compliance: Strict regulatory compliance for disbursements
• Audit Trail: Comprehensive audit trail for all disbursements

Security and Compliance

Transaction Validation

• Type Verification: Validate trade type against transaction purpose
• Amount Limits: Different limits for pay-in vs pay-out transactions
• Risk Assessment: Enhanced risk assessment for pay-out transactions
• Fraud Detection: Specialized fraud detection for each trade type

Regulatory Requirements

• Pay-In Compliance: Collection and reporting requirements
• Pay-Out Compliance: Disbursement and KYC requirements
• Audit Requirements: Different audit requirements for each type
• Reporting: Separate reporting for collection and disbursement activities