This article explains how to handle cancelled deposits. It covers the process of collecting funds from cancelled deposits and guides on identifying and managing these funds.
What is a Cancelled Deposit?
A cancelled deposit occurs when a transaction fails to meet the minimum amount threshold required by a wallet. Each digital wallet has specific limits that dictate the minimum amount that can be deposited. If a transfer is initiated with an amount lower than this threshold, the deposit remains "cancelled". The funds stay on the deposit address and cannot be utilised until further action is taken.
Identifying Cancelled Deposits
When you observe a cancelled deposit in the Transfers section of your account, it's important to confirm its status. The method of confirmation depends on the type of wallet used for the transfer.
How to Confirm a Merchant Cancelled Transfer
For transactions involving a merchant wallet, there are specific steps to recover funds from a cancelled deposit:
• Initiate a New Transfer: The end-user must create another transfer to the same wallet address. This new transfer must exceed the minimum amount threshold set by the wallet.
• Understand Smart Contract Logic: The underlying smart contract has programmed instructions that only allow the collection of transfers that meet or exceed the minimum amount. If another transfer is sent that does not meet this requirement, it will also remain stuck in a cancelled state.
• Successful Collection: Once the end-user sends a new transfer that exceeds the minimum amount, the system will automatically collect the previously cancelled deposit. The status of the cancelled transfer will change to "Failed," and the funds will be credited to your wallet through a process known as Side Collecting Funds.
• Manual Credit: It is important to note that while the first deposit will fail, the second transfer will be confirmed. As a merchant, you are responsible for manually crediting the failed deposit back to the user.
Important Considerations: Cancelled deposits can only be collected for tokens based on ERC-20, BEP-20, and TRC-20 standards. So if a BTC transfer is in "Cancelled" status, it cannot be collected.
How to Confirm an Enterprise Cancelled Transfer
Please be careful when you confirm deposits that are below the minimum required amount. Each time a deposit is confirmed, it utilises funds from your parent currency in the wallet. If the cancelled deposit is less than the amount of parent currency spent during confirmation, it may not be financially prudent to proceed with such transactions.
Understanding the Minimum Transfer Amount
In your Enterprise wallet, you have the ability to set a minimum transfer amount. This feature is important because it helps ensure that transactions are economically viable for your business. If a deposit does not meet this minimum threshold, it will be flagged as a "Cancelled transfer."
Steps to Confirm a Cancelled Transfer
When you receive a cancelled deposit notification in your Enterprise wallet, you will see an event labelled "Transfer amount is less than required minimum" in the Events tab. Here’s how to proceed:
1. Successful Collection:
• If you choose to click on "Confirm anyway," the system will process the transfer despite it being below the minimum amount.
• The originally cancelled deposit will be automatically collected, and its status will change to "Failed."
• The funds from the cancelled transfer will then be credited to your wallet through a process known as Side Collecting Funds.
2. Manual Credit:
• It is important to note that while the first deposit will fail, the second transfer will be confirmed. You should manually credit the failed deposit back to the user.
3. User-Initiated Transfers:
• Alternatively, you can ask the end-user to initiate a new transfer to the deposit address. This new transfer will follow the same confirmation logic as transactions in a Merchant wallet.
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