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Payment Reason Codes

When creating payment instructions, you must specify a reason code. This is a regulatory requirement from banking partners and helps categorize the purpose of the payment.

Available Reason Codes

Code Description Common Use Cases
audio_visual_services Audio visual services Media production, AV equipment rental
bill_payment Bill payment Utilities, rent, subscriptions, recurring services
business_expenses Business expenses General operational costs, supplies, equipment
construction Construction Building projects, renovation, contractor payments
donation_charitable_contribution Donation or charitable contribution Non-profit donations, charitable giving
education_training Education or training Course fees, training programs, educational materials
freight Freight Shipping costs, logistics, transportation services
goods_purchased Goods purchased Inventory, raw materials, product purchases
investment_capital Investment capital Capital investments, funding, equity transactions
investment_proceeds Investment proceeds Returns from investments, dividend payments
living_expenses Living expenses Personal expenses, household costs
loan_credit_repayment Loan or credit repayment Debt payments, loan installments, credit line payments
medical_services Medical services Healthcare payments, medical bills, insurance
pension Pension Retirement payments, pension distributions
professional_business_services Professional business services Legal, accounting, consulting, advisory services
real_estate Real estate Property purchases, real estate transactions
taxes Taxes Tax payments, government fees, regulatory payments
technical_services Technical services IT services, software development, technical support
transfer_to_own_account Transfer to own account Internal transfers between your own accounts
travel Travel Business travel, transportation, accommodation
wages_salary Wages or salary Employee compensation, payroll, contractor payments
other_services Other services Services not covered by other categories

Usage Guidelines

Business Payments

For most business-to-business payments, consider these common codes: - business_expenses - General operational costs - professional_business_services - Consulting, legal, accounting - goods_purchased - Inventory and supplies - bill_payment - Recurring services and utilities

Internal Transfers

  • transfer_to_own_account - Moving money between your company's accounts

Employee Payments

  • wages_salary - Regular payroll and contractor payments
  • business_expenses - Expense reimbursements

Vendor Payments

  • goods_purchased - Product and inventory purchases
  • professional_business_services - Service provider payments
  • technical_services - IT and software services

Regulatory Compliance

Payment reason codes serve several important purposes:

  1. Banking Compliance: Required by banking partners for transaction monitoring
  2. Regulatory Reporting: Helps banks comply with anti-money laundering (AML) regulations
  3. Transaction Categorization: Enables proper classification for financial reporting
  4. Risk Assessment: Assists in fraud detection and risk management

Best Practices

Choosing the Right Code

  • Be specific: Choose the most accurate code for your payment type
  • Stay consistent: Use the same codes for similar payment types
  • Document usage: Keep internal records of which codes you use for different vendors

Common Mistakes to Avoid

  • Using generic codes: Avoid other_services when a more specific code applies
  • Inconsistent categorization: Don't use different codes for the same type of payment
  • Incorrect business vs. personal: Ensure you're using business-appropriate codes

API Usage

When creating a payment instruction, include the reason code in your request:

{
  "payment_instruction": {
    "payment_quote_id": "quote_abc123def456",
    "reason": "business_expenses",
    "idempotency_key": "unique-payment-12345-abcdef"
  }
}