Webhooks Overview

Webhooks allow your platform to communicate automatically with other applications in real time. By sending HTTP requests to a specified URL when certain events occur, webhooks enable seamless integration, automation, and data synchronization between systems.

What Are Webhooks?

A webhook is essentially an HTTP callback triggered by events such as a new subscription, failed payment, or refunded transaction. Unlike polling APIs, webhooks push data immediately, reducing latency and system load.

Example Use Cases:

• Notify your CRM when a customer upgrades their subscription.

• Trigger an email notification after a failed payment.

• Sync orders with an accounting system.

Key Events Triggering Webhooks

Common events that fintech SaaS platforms typically support include:

Setting Up Webhooks

1. Create a Webhook Endpoint

   A URL on your server that can receive HTTP POST requests. Example in Node.js:

const express = require('express');
const bodyParser = require('body-parser');

const app = express();
app.use(bodyParser.json());

app.post('/webhooks', (req, res) => {
    console.log('Webhook received:', req.body);
    // Process event here
    res.status(200).send('Received');
});

app.listen(3000, () => console.log('Server listening on port 3000'));

const express = require('express');
const bodyParser = require('body-parser');

const app = express();
app.use(bodyParser.json());

app.post('/webhooks', (req, res) => {
    console.log('Webhook received:', req.body);
    // Process event here
    res.status(200).send('Received');
});

app.listen(3000, () => console.log('Server listening on port 3000'));

const express = require('express');
const bodyParser = require('body-parser');

const app = express();
app.use(bodyParser.json());

app.post('/webhooks', (req, res) => {
    console.log('Webhook received:', req.body);
    // Process event here
    res.status(200).send('Received');
});

app.listen(3000, () => console.log('Server listening on port 3000'));

2. Register the Webhook in Your Dashboard

   • Go to the Webhooks section of your platform.

   • Add your endpoint URL and select which events to subscribe to.

   
   

3. Verify and Secure

   • Validate that incoming requests originate from your platform.

   • Use secret tokens or signatures to ensure data integrity.

// Example: Verify webhook signature
function verifySignature(payload, signature, secret) {
    const crypto = require('crypto');
    const expectedSignature = crypto.createHmac('sha256', secret).update(payload).digest('hex');
    return expectedSignature === signature;
}

// Example: Verify webhook signature
function verifySignature(payload, signature, secret) {
    const crypto = require('crypto');
    const expectedSignature = crypto.createHmac('sha256', secret).update(payload).digest('hex');
    return expectedSignature === signature;
}

// Example: Verify webhook signature
function verifySignature(payload, signature, secret) {
    const crypto = require('crypto');
    const expectedSignature = crypto.createHmac('sha256', secret).update(payload).digest('hex');
    return expectedSignature === signature;
}

Best Practices for Webhooks

• Retry Mechanism: Ensure your endpoint can handle retries in case of temporary failures.

• Idempotency: Design your webhook handler so processing the same event multiple times does not cause duplicate actions.

• Logging: Keep logs of all received webhook events for debugging and auditing.

• Security: Always verify the signature of incoming requests and use HTTPS endpoints.