> ## Documentation Index
> Fetch the complete documentation index at: https://docs.usepooler.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Overview

> Understanding payments and how they work in Pooler

Payments are the core functionality of Pooler. This guide provides an overview of how payments work, the payment process, and key concepts you need to understand.

## What are Payments?

Payments in Pooler are transfers of funds from your account to recipient bank accounts. Pooler handles the complexity of routing payments through various payment networks, currency conversions, and compliance requirements.

## Payment Types

### Local Payments

Payments within the same country:

* **NIP (Nigeria)** - Instant bank transfers in Nigeria
* **Local Bank Transfers** - Standard bank transfers within country
* **Mobile Money** - Mobile money transfers (where supported)

### Cross-Border Payments

Payments between different countries:

* **SWIFT** - International wire transfers
* **Regional Networks** - Regional payment networks
* **Corridor-Specific** - Optimized routes for specific corridors

## Payment Process

### Two-Step Payment Flow

Pooler uses a two-step payment process for transparency and control:

<Steps>
  <Step title="Initiate Payment">
    Create a payment quote with fees and exchange rates.
  </Step>

  <Step title="Review Quote">
    Review the quote including:

    * Payment amount
    * Fees
    * Exchange rates (if applicable)
    * Total amount to deduct
  </Step>

  <Step title="Confirm Payment">
    Confirm the payment to execute the transfer.
  </Step>

  <Step title="Processing">
    Pooler processes the payment through selected route.
  </Step>

  <Step title="Completion">
    Payment is completed and recipient receives funds.
  </Step>
</Steps>

## Payment States

### Payment Statuses

Payments progress through various states:

| Status       | Description                            |
| ------------ | -------------------------------------- |
| `initiated`  | Payment quote created                  |
| `pending`    | Payment confirmed, awaiting processing |
| `processing` | Payment is being processed             |
| `completed`  | Payment successfully completed         |
| `failed`     | Payment processing failed              |
| `rejected`   | Payment was rejected                   |

## Key Concepts

### Payment Amounts

| Amount Type            | Description                                         |
| ---------------------- | --------------------------------------------------- |
| **Source Amount**      | Amount you want to send (in source currency)        |
| **Destination Amount** | Amount recipient receives (in destination currency) |
| **Exchange Rate**      | Rate used for currency conversion                   |
| **Fees**               | Transaction and processing fees                     |
| **Total Deduction**    | Total amount deducted from your account             |

### Payment Routes

Pooler selects optimal payment routes based on:

* **Destination** - Recipient country and bank
* **Currency** - Source and destination currencies
* **Amount** - Payment amount
* **Speed** - Processing time requirements
* **Cost** - Route fees and exchange rates

<Info>
  See [Route Management](/guides/payments/route-management) for details on how routes are selected and optimized.
</Info>

### Currency Conversion

When sending payments in different currencies:

* **Exchange Rates** - Real-time or quoted rates
* **Conversion Fees** - Fees for currency conversion
* **Rate Lock** - Quotes may lock rates for a period

<Info>
  See [Conversion Rates](/guides/payments/conversion-rates) for details on exchange rates and conversions.
</Info>

### Fees

Payments may include various fees:

| Fee Type             | Description                      |
| -------------------- | -------------------------------- |
| **Transaction Fees** | Fixed or percentage-based fees   |
| **Route Fees**       | Fees for specific payment routes |
| **Conversion Fees**  | Currency conversion fees         |
| **Processing Fees**  | Additional processing costs      |

<Info>
  See [Transaction Fees](/guides/payments/transaction-fees) for a detailed breakdown of fees.
</Info>

## Payment Features

### Idempotency

Use idempotency keys to prevent duplicate payments:

```javascript theme={null}
// Include Idempotency-Key header
headers: {
  'Idempotency-Key': 'unique-key-per-payment'
}
```

### Payment References

Provide custom references for tracking:

| Field           | Description                             |
| --------------- | --------------------------------------- |
| **Reference**   | Your internal reference for the payment |
| **Description** | Payment description                     |
| **Metadata**    | Additional metadata                     |

### Payment Limits

Payments are subject to limits:

| Limit Type                 | Description                |
| -------------------------- | -------------------------- |
| **Per-Transaction Limits** | Maximum amount per payment |
| **Daily Limits**           | Maximum total per day      |
| **Monthly Limits**         | Maximum total per month    |

<Info>
  Contact support to adjust limits based on your needs.
</Info>

## Best Practices

<Tip>
  * Always review payment quotes before confirming to understand fees and rates.
  * Always use idempotency keys to prevent duplicate payments.
  * Store payment references and IDs for tracking and reconciliation.
  * Set up webhooks to monitor payment status in real-time.
  * Implement proper error handling for failed payments.
</Tip>