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SmartRetry supports the full range of payment transaction types. Understanding which type to use - and how they relate to each other - ensures your integration behaves as expected and that SmartRetry applies the right recovery logic when a transaction fails.

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Quick reference

account_verification and payout are valid type values on the transaction record, but no Terminal API endpoint currently creates a transaction of either type directly.

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Transaction lifecycles

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Transaction types in detail

A sale is a direct, immediate charge against the payer’s payment method. Funds are authorized and captured in a single step.Use for: Standard one-time purchases where the final amount is known at the time of checkout.SmartRetry behavior: If a sale is declined, SmartRetry analyzes the decline code and applies the appropriate recovery strategy - adjusting routing, authentication, or card parameters before retrying.
A pre-authorization places a hold on funds in the payer’s account without capturing them. The hold reserves the amount but does not complete the transfer.Use for: Scenarios where the final charge amount may differ from the initial authorization - such as hotels, car rentals, or orders with variable fulfillment costs.SmartRetry behavior: SmartRetry can recover failed pre-auth attempts using the same optimization strategies applied to sales.
Pre-auth holds expire after a period defined by the card network (typically 7–30 days). You must capture before the hold expires.
A capture settles a previously approved pre-authorization. It triggers the actual transfer of reserved funds from the payer’s account to the merchant.Use for: Completing a pre-auth once the final transaction amount is confirmed.Requirements: The capture must reference the original pre-auth transaction ID. The capture amount cannot exceed the remaining capturable amount (the authorized amount minus any amount already captured).
A refund returns funds to the payer, reversing some or all of a previously completed transaction.Use for: Order cancellations, returns, or partial refunds after settlement.Requirements: The refund must reference an original sale, capture, recurring init, recurring charge, or payout. Partial refunds are supported up to the remaining refundable amount (the original amount minus any amount already refunded).
Refunds apply to settled transactions. To cancel a pre-authorization before settlement, use a Void instead.
A void cancels an approved pre-authorization before it is captured. No funds are moved - the authorization hold is simply released.Use for: Cancelling a pre-auth before the capture step.Requirements: The void must reference the original pre-authorization transaction ID, and that transaction must be approved. Use Refund to reverse a completed sale or capture instead.
A recurring init is the first transaction in a recurring payment series. It charges the payer and simultaneously stores their card credentials on file to enable future automated charges.Use for: Initializing subscriptions, installment plans, or any payment series where you need to store credentials for repeated use.SmartRetry behavior: SmartRetry applies specialized recurring transaction logic to maximize the approval rate of the initial charge and ensures credentials are stored correctly for subsequent charges.
A recurring transaction is a subsequent charge in a series initialized by a recurring_init. It uses the stored credentials from the initial transaction.Use for: Subscription renewals, scheduled installments, and any automated charge following a successful recurring init.SmartRetry behavior: SmartRetry applies dedicated retry logic for recurring charges - adjusting timing, acquirer routing, and authentication behavior to minimize involuntary churn on renewals.
Recurring transactions have some of the highest recovery rates in SmartRetry, since the underlying card is often valid and the decline is temporary.
A payout transfers funds from your account to the payer. This is the reverse of a standard charge.Use for: Marketplace seller payouts, refund-equivalent transfers, or reward disbursements where funds flow to the cardholder rather than from them.