Understanding the Difference Between Webhooks and APIs

When attempting to create programs that interface with other tools, it can often be difficult to figure out how to make that connection. Should your app ask for new data every few minutes? Or should it wait for the other service to notify it when something changes? This is where the distinction between APIs and Webhooks becomes important.

This guide breaks down the difference between the two, using practical examples to help you decide when to use one over the other.

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APIs: Ask Me Anything

An API (Application Programming Interface) allows your application to actively request data from another service.

The way that I’ve always remembered APIs is as follows:

Imagine a kid in the backseat of a car asking:

Kid: “Are we there yet?”

Parent: “Nope.”

...30 seconds later...

Kid: “Are we there yet?”

Parent: “Still no.”

This is called polling — your app is in charge of asking for updates, which can become inefficient if updates are rare. However, APIs are great when you need to control the flow of information or fetch lots of data on demand.

Pros:

• On-demand access to data

• Fully controlled by your app

• Ideal for bulk fetching, dashboards, and regular syncs

Cons:

• Can waste resources if updates are infrequent

• Risk of hitting rate limits

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Webhooks: Don’t Call Me, I’ll Call You

A Webhook is essentially an API in reverse. Instead of your app calling out, the other service sends a message to your app when something important happens.

Going back to my previous example, this means that instead of pinging mom and dad every 30 seconds, the following scenario takes place:

The kid tells their parent, “Wake me up when we get there,”
and then takes a nap until the parent finally turns around and says:

“Hey, we’re there.”

That’s exactly how a webhook works — your app goes to sleep and simply waits for the other service to notify it when an important event happens. No more constant polling. No more wasted energy.

Webhooks are perfect when you want real-time updates with minimal effort. You simply provide a URL endpoint, and the third-party service will push data to it as events happen.

Pros:

• Real-time updates

• Efficient — no need for polling

• Great for event-driven workflows

Cons:

• Harder to debug (you only get notified when something happens)

• You need to ensure your server is always reachable and secure

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Use Case Comparison

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Can They Work Together?

Absolutely. A well-architected system often uses both:

• Use Webhooks to react instantly to changes.

• Use APIs to fetch historical data or fill in gaps.

For example, Stripe uses webhooks to notify you of successful payments, and you can use its API to fetch invoice details later.

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TL;DR

• APIs: You ask. Great for frequent or complex reads.

• Webhooks: They tell you. Great for real-time updates.

• Together: Even better.