Webhook
Automated notifications sent from payment systems when specific events occur.
What is Webhook?
A webhook is an automated HTTP callback that sends real-time notifications when events occur in a payment system. Instead of constantly polling an API for updates, your system receives instant notification when something happens—payment completed, subscription cancelled, chargeback received. Webhooks enable event-driven architectures where your systems respond immediately to payment events without manual checking or delays.
Why It Matters
Webhooks enable real-time automation and eliminate polling overhead. When a payment completes, your system can instantly update the order status, trigger fulfillment, and send confirmation. When a subscription fails, you can immediately notify the customer. Webhook-driven integrations are more efficient, more responsive, and more reliable than batch or polling approaches.
Related Terms
Payment Gateway
Technology that securely captures and transmits payment data from customers to processors.
Payment Orchestration
A software layer that routes transactions across multiple payment providers intelligently.
Accounts Receivable Automation
Technology that automates invoicing, payment collection, and cash application processes.
Recurring Billing
Automatically charging customers on a scheduled basis for subscriptions or ongoing services.
Frequently Asked Questions
Common events: payment completed, payment failed, refund issued, chargeback received, subscription created/cancelled/renewed, card about to expire. Varies by processor.
Implement idempotency (handle duplicate notifications), respond quickly (return 200 status), and process asynchronously. Most processors retry failed webhooks automatically.
Use signature verification to confirm webhooks come from your processor. Always validate webhook signatures before processing. Most processors sign webhooks with a shared secret.
Simplify your payment operations
Anchorbase connects payments directly to your ERP with automated reconciliation. Zero platform fees.