2 - Payment Life Cycle [Part 1: Payment Initiation and Payment Processing]

Blog Post : https://paymenttalks.com/payment-life...
Welcome back to PaymentTalks! After a long break, we’re diving straight into one of the most fundamental topics in banking and payments — The Payment Life Cycle.
In this Part 1, we’ll explore the first two critical stages:
1️⃣ Payment Initiation – How a payment journey begins, what data is captured, and how authorization, validation, and enrichment take place before funds even move.
2️⃣ Payment Processing – The core of every payment engine, where routing decisions, message formatting, compliance screening, and accounting entries ensure smooth fund transfer readiness.
This video breaks down these phases with clear examples, flow explanations, and real-world insights from modern payment systems.
Whether you’re a payment professional, tech enthusiast, or just curious about how money moves behind the scenes — this is the perfect place to start.
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🎯 Key Topics Covered:
• Payment Initiation flow and validation
• Role of customer channels, APIs, and authorization
• How payment processing engines route and handle transactions
• The importance of compliance, FX, and accounting during processing
• Foundation for clearing and settlement (covered in Part 2)
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🔗 Watch Next:
👉 [Part 2: Clearing, Settlement, Reconciliation & Exception Handling]