# Cash balance withdrawal

A withdrawal is the process of paying out a user’s funds to their reference account.

## How withdrawals work

Withdrawals can be processed for the share of the cash balance with the state `AVAILABLE_FOR_WITHDRAWAL`. Consider this sell order example demonstrating the process:

Once a sell order is successfully executed, the Investment API calculates the net amount after taxes and fees.

A user’s cash balance is updated by the net amount and assigned the state `PENDING_SETTLEMENT`.

After the order is settled, funds are transferred to the user's cash account in our system, representing a funding event.

The net amount is now `AVAILABLE_FOR_WITHDRAWAL`, and therefore can be withdrawn.

The following flow diagram illustrates the withdrawal flow including all related withdrawal status changes, and cash balance updates:

Settlement of funds typically takes two business days.

## Implementing withdrawals

### Prerequisites

Withdrawals require that

- a [user is created](/products/tol/guides/users/users_onboarding_overview)
- an assigned [reference bank account](/products/tol/guides/payments/reference_accounts/reference_accounts_registering) is existent
- there is sufficient funds in their [cash balance](/products/tol/guides/payments/cash_balances/cash_balances_intro) (e.g., from a sell order) that are not locked for other purposes such as re-investment.


### Submitting a withdrawal request

To request a cash withdrawal, you can specify the cash amount and reference account when triggering a request by

**POST** [`/payments/withdrawals`](/api/withdrawals/create_cash_withdrawal)

Example request
{
    "reference_account_id": "295378ec-036e-4f3f-ae5c-2be85c93e837",
    "account_group_id": "2596db3b-0d03-4651-9eda-970910479dfb",
    "user_id": "e56c14b3-8370-4c04-bc67-7092f7ec113c",
    "amount": "200.00",
    "currency": "EUR",
    "remittance_information": "Withdrawal",
    "purpose_code": "OTHR"
}
Example response
{
    "id": "6ffa6b16-2380-4e7a-88b2-ae625c8eef99",
    "bank_reference": "f2f0ef23-c68d-42c1-a744-8c86f471954b"
}

**Remittance Information Disclaimer**

Please be aware that while our API allows you to specify detailed remittance information for your withdrawals, we cannot guarantee that this information will be transmitted to the recipient's bank without modification.

Some banks may have limitations on the characters or length of remittance information they can process. This may result in the information being truncated, altered, or omitted entirely.

We recommend keeping your remittance information concise and avoiding special characters or non-standard formatting.

## Webhooks

You will also receive a withdrawal `NEW` webhook with the exactly same payload.

Webhooks notify you of events in business processes, not the success or failure of the initialisation of those processes.

Please be sure to check the [HTTP status](/api_errors) of the response to your requests and handle failure cases appropriately.

Once all relevant payment checks have been passed and payment instruction forwarded to payment partner, the withdrawal transitions into status `PROCESSING` and you will receive a withdrawal event via webhook.

Afterwards, the withdrawal gets executed and confirmed at our payment partner and you will receive a withdrawal `CONFIRMED` webhook.

### Cash balance update

Based on the withdrawal status, you will also receive a cash balance updated event via webhook.
Depending on these statuses, the fields inside the cash balance update can be interpreted as follows:

| Field | Description |
|  --- | --- |
| `balance` | Total cash amount held by the account group |
| `available_for_withdrawal` | Maximum cash amount that can be withdrawn |


Assuming that the user has a settled sell order with EUR 200,00 (following fees and taxes), intended for withdrawal, the cash balance updates for the above withdrawal look as follows.

**Example of the cash balance before the withdrawal request**

{
  "account_group_id": "d0fc0305-97b7-4e3b-bddf-66d3c434898c",
  "currency": "EUR",
  "balance": "200",
  "locked_for_trading": "0",
  "pending_settlement": "0",
  "available_for_withdrawal": "200",
  "available_for_trading": "0"
}

**Example update for withdrawal `NEW`**

{
  "id": "a59c81ee-7770-4f6b-9ebe-8c268b78beb4",
  "created_at": "2021-07-22T14:12:00.00Z",
  "type": "CASH_BALANCE.UPDATED",
  "object": {
    "account_group_id": "d0fc0305-97b7-4e3b-bddf-66d3c434898c",
    "currency": "EUR",
    "balance": "200",
    "locked_for_trading": "0",
    "pending_settlement": "0",
    "available_for_withdrawal": "0",
    "available_for_trading": "0"
  },
  "webhook_id": "9df39835-be87-4243-9018-f2500b39cee6"
}

**Example update for withdrawal `CONFIRMED`**

{
  "id": "8c049f77-dc72-489d-8f5f-3871db782252",
  "created_at": "2021-07-21T14:11:00.00Z",
  "type": "CASH_BALANCE.UPDATED",
  "object": {
    "account_group_id": "d0fc0305-97b7-4e3b-bddf-66d3c434898c",
    "currency": "EUR",
    "balance": "0",
    "locked_for_trading": "0",
    "pending_settlement": "0",
    "available_for_withdrawal": "0",
    "available_for_trading": "0"
  },
  "webhook_id": "9df39835-be87-4243-9018-f2500b39cee6"
}

There is no cash balance update for a nominal buy order with status `PROCESSING`, because all fields remain unaffected and do not change.

### Cancelling a withdrawal

It is possible to cancel a withdrawal.
The prerequisite for this is that they have the status `NEW`.

To cancel an existing withdrawal, call the cancellation endpoint with the appropriate withdrawal ID, using

**DELETE** [`/payments/withdrawals/{withdrawalID}`](/api/withdrawals/cancel_cash_withdrawal)