What is an external transaction or deposit?

We define external transactions or external deposits as all transactions processed outside of our API that land in your Merchant Account.

When you see in the logs "deposit_unknown" or "external_deposit," that means the transaction is being processed with a scheme outside of our APIs (like Faster Payments or SEPA). However, as long as it's a Settled transaction, the funds are still added to your wallet like they are being processed via any other closed-loop payment.

FAQs

How should you process it once we receive the related webhooks?

You decide how to process it. You can either credit the funds to the user's account or refund the payment. You will receive payment details via the webhook, which will also be shown in the Console.

Can you block this type of transaction?

Yes! You can learn how to refund all external_deposit transactions automatically from our Docs.
Automatically refund payments from external sources.

Said return will show up as an external_deposit in your Merchant Account.
Back in December 2023, we introduced a new failure_reason for payouts and refunds that informs our clients when a payout or refund is returned.

You can contact us if you need help reconciling the original payout with its return.
How to contact TrueLayer's support?

Why does an external_deposit show as processed via TrueLayer's API?

It does cause a transaction that gets added to your wallet, but we only get the Settled status and related webhook.