> ## Documentation Index > Fetch the complete documentation index at: https://docs.withacclaim.com/llms.txt > Use this file to discover all available pages before exploring further. # Payment lifecycle > Understand how payments move from request to completion, including status transitions, required actions, and final states. Every payment moves through a defined lifecycle from **creation** to **completion**. Statuses reflect the current state of the payment and whether **action is required**, **authorization is complete**, or **funds are in motion**. ## Lifecycle overview Payments move through four phases: 1. **Requires action** — `RequiresPaymentMethod`, `RequiresAction` 2. **Ready** — `Authorized` 3. **In progress** — `Processing` 4. **Final states** — `Succeeded`, `Failed`, `Canceled` ## Status definitions ### RequiresPaymentMethod Action required The payment does not have a valid payment method. This occurs when: * No payment method has been provided * The selected method is incomplete or not supported How to resolve: * Provide a payment method through a hosted or embedded flow * Or update the payment request configuration *** ### RequiresAction Action required The payment is waiting for the payer to complete an action. This occurs when: * The payer has not completed the payment flow * Additional steps are required (e.g. entering details or confirming payment) How to resolve: * Direct the payer to complete the payment * Ensure the payment experience is accessible and complete *** ### Authorized Authorized The payment method has been successfully authorized. At this stage: * Required payer consent or authorization has been captured * The payment is eligible to be processed For some methods (such as cards), authorization and processing may occur almost immediately. *** ### Processing In progress The payment has been submitted and is being processed. During this stage: * Funds are in transit or being confirmed * External payment networks may be involved * Status updates occur asynchronously No action is required while processing. *** ### Succeeded Completed The payment has completed successfully. At this stage: * The payer has been charged * Funds are settled or in the process of settlement * The payment is ready for reconciliation *** ### Failed Failed The payment could not be completed. See [Payment failures](/guides/collect/payment-failures#failure-codes) for the complete list of failure codes and messages. Next steps: * Review the failure reason * Correct any issues * Retry the payment if appropriate *** ### Canceled Canceled The payment was canceled and will not be processed. This can occur when: * A user cancels the payment request * The payment is no longer needed * A workflow or system action stops execution Canceled payments are final and will not be processed. *** ## State transitions Payments move forward as requirements are met and processing progresses. Typical transitions include: * **RequiresPaymentMethod** → **RequiresAction** → **Authorized** * **RequiresAction** → **Authorized** (once the payer completes the flow) * **Authorized** → **Processing** → **Succeeded** * **Processing** → **Failed** * **Authorized** → **Canceled** Transitions are driven by: * Payer interaction * Data completeness * Payment method behavior * External network responses *** ## Webhooks and status updates Payment status changes are communicated via **webhooks**. Use webhooks to: * Track payment progress in real time * Trigger internal workflows * Handle failures and retries Each status update corresponds to a lifecycle transition. *** ## Summary * Payments move through **clear phases** from required actions to final states * **RequiresPaymentMethod** and **RequiresAction** indicate missing input or payer interaction * **Authorized** confirms payment method approval * **Processing** reflects funds in motion * **Succeeded**, **Failed**, and **Canceled** are final states Understanding the lifecycle helps you **build reliable workflows**, **handle edge cases**, and **maintain accurate reconciliation**.