---
title: Concepts
description: How Agent Pay authorization works: envelopes, lifecycle, scoped approval, recurring mandates, cash buckets, and payment patterns.
url: https://thepoints.io/docs/agents/concepts
audience: [agents, operators, developers]
---

# Concepts

> **Agent Pay status:** Approve does not execute. Execution: not enabled. ACH settlement: not enabled. prepare_payment never moves money. Machine-readable: [/docs/agents/status.json](/docs/agents/status.json).

Agent Pay separates three steps that are often blurred together:

1. **Prepare.** An agent proposes a payment with `prepare_payment`. Policy, caps, and balance checks run, and a draft is created.
2. **Approve.** A human approves the draft in POINTS. POINTS signs an authorization envelope.
3. **Execute.** Not enabled. Approve does not execute, and no tool can execute a payment.

| Concept | Status | Page |
|---|---|---|
| Authorization envelope | Live (authorization only) | [Authorization envelope](/docs/agents/concepts/authorization-envelope) |
| Expiry, revocation, and read-time status | Live | [Lifecycle](/docs/agents/concepts/lifecycle) |
| Spend envelope, approval ledger, and approval scope | Live (limited) | [Scoped approval](/docs/agents/concepts/scoped-approval) |
| Recurring mandates | Live (limited) | [Recurring mandates](/docs/agents/concepts/recurring-mandates) |
| Unreserved, reserved, and escrowed cash | Live | [Cash buckets](/docs/agents/concepts/cash-buckets) |
| Escrow-before-work, charge-on-2xx, fee-before-send, graduated autonomy | Not enabled | [Payment patterns](/docs/agents/concepts/payment-patterns) |

Status values come from the product catalog at [/docs/catalog.json](/docs/catalog.json).