Payment processing security overview at BitcoinPayGate

Definitions:

• Payment - Process of receiving a specific amount of BTC to designated address. Payment has it's lifecycle and goes through few steps.
• Transaction - Bitcoin transaction that moves BTC between addresses. Single payment can be linked to any number of transactions

Payment transition states

Payment process is started by API Client.

BitcoinPayGate ensures that Payment goes through certain states in the right order when various conditions change.

See more details at https://api.bitcoinpaygate.com/v2/docs/payment-states

Overview

Each Bitcoin transaction we receive is linked to specific Payment. In most cases each transaction results in state transitions of the Payment.

In scenarios when our system decides that the transaction is suspicious the Payment will remain in intermediate step UNCONFIRMED until the transaction is settled on the Bitcoin blockchain with high certanity.

For each payment and transaction we analyze it's risk depending on multiple factors, one of which is the value of the Payment.

Please see state transaction examples Payment States