Understanding Payment Processing For Ecommerce

I recently had a great conversation with the CFO of a big Latin American e-commerce marketplace. Here are my biggest insights: 1. Credit cards are declining While credit cards still dominate in countries like Ecuador and Panama, their reign is coming to an end. Why? Local processing rails are giving Visa and Mastercard a run for their money. 2. Brazil's Pix revolution Pix is a game-changer. Launched in 2020, it hit 100 million users in just a year. That's insane growth. What makes Pix special? → It's fast → It's easy to use → It's free for everyone Pix is digitizing transactions that were once cash-only, bringing millions of unbanked Brazilians into the financial system. 3. LatAm's homegrown solutions Wallets and Banks are creating their own "Payment Methods" with an improved UX, lower cost, higher approval rates, and NO Chargeback or Fraud. Here are few examples: Argentina: MercadoPago Brazil: NuPay, PicPay Colombia: DaviPlata, Nequi, Boton Bancolombia Peru: Yape and Plin In my opinion, these account-to-account (A2A) payments are set to dominate the market by 2026. 4. The Mexico exception While most of LatAm is racing ahead, Mexico is still cash-heavy. Their central bank solution, CoDi, hasn't taken off like its counterparts. 5. Cross-border potential We're seeing exciting developments in cross-border payments, especially between Brazil, Argentina, and Uruguay. The big question: How fast can we get people to ditch cash and cards for these new methods? It's a challenge, but one that presents massive opportunities for fintechs. At Yuno, we're at the forefront of this shift, helping businesses provide the best payment solutions for customers. The future of payments in LatAm is being written right now, and it's thrilling to be part of it.

Integrating a payment gateway with FLUTTER seems straightforward—until you dive in. 😅 I’ve worked with multiple providers like Razorpay, JUSPAY, Stripe, PayU, Paytm, PhonePe, and PayPal across different platforms, Even worked on in-app payments and each integration came with its own set of surprises. Here’s what I wish I knew earlier. 👇 🔥 Challenge 1: Payment Failures & Drop-offs The first time I integrated a gateway, I assumed if the UI worked, payments would too. I was wrong. Bank downtimes, network issues & OTP failures were killing transactions. ✅ Solution: Implemented smart retries, gateway fallback & real-time tracking to recover lost payments. ⚡ Challenge 2: Optimizing Checkout UX A messy checkout flow costs conversions—users drop off if it’s slow, complicated, or asks for too much information. ✅ Solution: Implemented one-click UPI, saved cards, & tokenized payments to reduce friction. ✅ Impact: Increased transaction success rates. 🔒 Challenge 3: Security & Compliance Nightmares The first time I worked with PCI-DSS compliance & tokenization, I underestimated the complexity. A single misstep can lead to fraud risks & penalties. ✅ Solution: Used 3D Secure, OTP verification, JWT authentication & proper encryption to ensure compliance & security. 📊 Challenge 4: Tracking Revenue & Identifying Issues Without real-time monitoring, you’re blind to failed transactions & revenue loss. ✅ Solution: Integrated webhooks & analytics dashboards (Razorpay, Stripe) to track payments & fix failures proactively. Key Takeaways: ✅ A seamless payment experience isn’t just UX—it’s about handling failures well. ✅ Multiple gateways help mitigate downtime & increase success rates. ✅ Security & compliance must be built in from Day 1. ✅ Data-driven insights can unlock revenue growth. 💬 Have you faced challenges with payment integrations? Let’s talk! If you’re working on Flutter, Web, or Mobile payments, I’d love to help. 🚀 #Payments #Fintech #Stripe #Razorpay #Flutter #Engineering

𝗚𝗼𝗼𝗱𝗯𝘆𝗲 𝗣𝗮𝘀𝘀𝘄𝗼𝗿𝗱𝘀, 𝗠𝗮𝗻𝘂𝗮𝗹 𝗖𝗮𝗿𝗱 𝗘𝗻𝘁𝗿𝘆, 𝗮𝗻𝗱 𝗢𝗻𝗲-𝗧𝗶𝗺𝗲 𝗖𝗼𝗱𝗲𝘀, Hello Seamless Payments: 𝗧𝗵𝗲 𝗙𝘂𝘁𝘂𝗿𝗲 𝗼𝗳 𝗦𝗲𝗰𝘂𝗿𝗲 𝗘-𝗖𝗼𝗺𝗺𝗲𝗿𝗰𝗲 𝗶𝗻 𝗢𝗻𝗹𝘆 𝟱 𝗬𝗲𝗮𝗿𝘀 Mastercard is setting 𝗮𝗺𝗯𝗶𝘁𝗶𝗼𝘂𝘀 𝗴𝗼𝗮𝗹𝘀 𝘁𝗼 𝗿𝗲𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻𝗶𝘇𝗲 𝗼𝗻𝗹𝗶𝗻𝗲 𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝗯𝘆 𝟮𝟬𝟯𝟬. The company plans to eliminate manual card entry, passwords, and one-time codes, aiming for 100% tokenization of #ecommerce transactions globally. #Tokenization replaces traditional card numbers with secure tokens, reducing #fraud and enhancing transaction approval rates. Currently, over 30% of Mastercard #transactions worldwide are tokenized, with markets like India approaching 100% for e-commerce. Additionally, Mastercard is introducing biometric authentication methods, such as fingerprints and facial scans, to replace passwords and one-time codes, ensuring sensitive data remains protected. The company is also promoting 'Click to Pay,' enabling users to load multiple cards onto their #mobile devices for seamless online shopping without manual input. 𝗔𝘀 𝘄𝗲 𝘁𝗿𝗮𝗻𝘀𝗶𝘁𝗶𝗼𝗻 𝘁𝗼 𝗮 𝘄𝗼𝗿𝗹𝗱 𝘄𝗵𝗲𝗿𝗲 1𝟬𝟬% 𝘁𝗼𝗸𝗲𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗯𝗲𝗰𝗼𝗺𝗲𝘀 𝘁𝗵𝗲 𝗻𝗼𝗿𝗺, #𝗜𝘀𝘀𝘂𝗲𝗿𝘀 𝗮𝗻𝗱 #𝗔𝗰𝗾𝘂𝗶𝗿𝗲𝗿𝘀 𝗺𝘂𝘀𝘁 𝗺𝗼𝗱𝗲𝗿𝗻𝗶𝘇𝗲 𝘁𝗵𝗲𝗶𝗿 𝗽𝗹𝗮𝘁𝗳𝗼𝗿𝗺𝘀 𝘁𝗼 𝘀𝘁𝗮𝘆 𝗮𝗵𝗲𝗮𝗱 𝗼𝗳 𝘁𝗵𝗲 𝗰𝘂𝗿𝘃𝗲. The move towards tokenized #payments will not only reduce fraud but also enhance transaction approval rates and improve customer experience. To accommodate this shift, Issuers need to upgrade their systems to support seamless tokenization and #biometric #authentication, while Acquirers must ensure their platforms can handle the increasing volume of secure, tokenized transactions. By embracing this change, both Issuers and Acquirers will be better equipped to meet the demands of an evolving payments landscape and deliver a frictionless, secure payment experience for their customers. Ren Payments by Euronet. #Issuing, #Acquiring, #RTP Instant Payments #Processing #Platform, #Infrastructure, and #Expertise.

Accepting payments in 3 minutes feels convenient... Until you wake up and don't have access to your money. If you’re in eComm, SaaS, have recurring billing or are selling high-ticket offers… Those “click here and you’re approved in minutes” merchant accounts... Are like handing your drunk friend the car keys. Sure... maybe they’ll make it home fine. But statistically, it’s a massive liability. And when things go wrong? It’s usually catastrophic. Here’s why ⬇️ Platforms like Stripe, Klarna, Adyen and others: They don't really do underwriting. They let almost anyone in... And you're all in a pool together. Then Stripe handles the risk on the backend by closing accounts and holding funds. It's not good or bad, it's just how the business model works. But here's the b*tch... YOUR business doesn't even need to do anything wrong to have an issue. When of YOUR COMPETITORS does something that causes a review; A spike in chargebacks, a fast-growth month, an aggressive marketing campaign, And your industry or business model as a whole is impacted. We get 3-5 businesses a day that are having money held by Stripe or some other provider. Business lose the ability to payments for weeks. And can be without big chunks of cash for months when this happens. How long could YOUR business survive without cash flow? To pay staff?  Fulfill orders?  Keep ads running? The frustrating part? It’s avoidable. Here’s how to protect yourself: 1. Get fully underwritten upfront ↳ Share your actual business model, marketing, and fulfillment processes. ↳ Work with a provider who understands your industry’s risk profile. 2. Diversify your processing ↳ Have multiple merchant accounts with smart routing. ↳ Avoid a single point of failure that can take you down overnight. (hint: Easy Pay Direct can set all of that up for you) 3. Know your risk triggers ↳ Track refund rates, chargebacks, and industry compliance. ↳ Stay ahead of red flags that processors use to shut accounts down. Some shortcuts in business are fine. This isn’t one of them. Ever been burned by an instant-approval platform? ♻ Share this if you know a founder who needs to hear it.  And follow me, Brad Weimert, for more.

I've worked with SFCC brands pulling in 9 figures a year. And many leaked revenue at the same exact place. Checkout. Let's be honest: You can have the perfect product. A smooth PLP. A stunning PDP. But if your checkout makes customers hesitate (even for a second) they're gone. And they don't come back. Here's what I've learned the best brands do differently when optimizing checkout in Salesforce Commerce Cloud - without sacrificing UX. 1. Don't just reduce friction. Eliminate it. Customers abandon for simple reasons: • Promo codes that don't work • Forms that ask for info twice • Shipping costs that show up too late Top brands build flows that assume urgency: • Pre-filled fields from session data • Real-time validation with inline feedback • Shipping transparency up front A slow or unclear step isn't "just UX." It's lost revenue. 2. Offer fewer payment methods than you think - but make them obvious More isn't always better. Confusion creates delay. Delay kills conversion. What works: • Credit/debit (always) • Apple Pay / Google Pay • PayPal / Shop Pay • Affirm / Klarna (only if AOV supports it) Smart brands prioritize based on data. They test placement, auto-detect device types, and default to what converts fastest. 3. Mobile isn't secondary - it's everything The biggest brands I've worked with design for tap-first, scroll-second. That means: • Full-width input fields • Large tap targets with spacing • One-column flow • Sticky CTA at the bottom of the screen If your checkout feels like a spreadsheet on mobile, you're already losing. 4. Use Business Manager like a growth engine, not just a CMS I've seen many teams hard-code checkout logic. Top teams know better. They use: • A/B tests for live checkout experiments • Real-time rules that adapt without redeploys SFCC is powerful - if you treat it like a tool, not a template. Your checkout is the last conversation your brand has with your customer. If that conversation feels clunky, confusing, or exhausting - you won't get a second one. Want to grow revenue without spending more on ads? Fix the one place that silently kills conversions: Checkout. What did I miss?

You’re Great at What You Do, But Is It Easy to Pay You? Let me tell you two quick stories. First, I was on a call with a client who told me, “We require all customers to pay by check.” Checks. In 2025. Their customers didn’t ask for this. It was simply what worked for them. And if paying you feels like a hassle, it becomes a reason not to buy. Now jump to last month, after weeks of research, I was ready to buy software. However, instead of a one-click purchase, I was required to participate in a mandatory demo call. Thirty minutes later, I had to re-enter the same info and confirm my email for the third time. It took over a week to buy something I was already sold on, and it should have been a one-click purchase. Most people would’ve walked away. This is payment friction. And it’s quietly killing conversions. You can spend thousands on campaigns and traffic, but if your checkout creates confusion or delay, customers will drop off at the finish line. Here are 5 ways to fix it: ▶️ Audit your purchase path. If it takes more than 3 minutes or 5 clicks, it’s too long. ▶️ Offer flexible payment options. Let your customers choose what works for them. ▶️ Eliminate forced steps. Don’t block ready buyers with unnecessary hoops. ▶️ Pre-fill everything. Repeating info leads to frustration and drop-offs. ▶️ Streamline verification. Balance speed with security, not one at the cost of the other. Fixing this isn’t just about improving conversion rates. It’s about showing respect for your customers’ time, building trust, and creating a seamless brand experience. If you’re wondering why people aren’t converting, it might not be your marketing. It might be your checkout. Want a quick audit of your payment experience? Let’s connect, I’ll show you where the friction is hiding.

𝗪𝗵𝗮𝘁 𝗜𝘀 𝗖𝗹𝗼𝘂𝗱 𝗧𝗼𝗸𝗲𝗻 𝗙𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸 (𝗖𝗧𝗙)? As payments expand, securing card-not-present (CNP) transactions across multiple devices is paramount. Visa's Cloud Token Framework (CTF) addresses this need by enhancing payment security and user experience. 𝗕𝘂𝗶𝗹𝘁 𝗼𝗻 𝗡𝗲𝘁𝘄𝗼𝗿𝗸 𝗧𝗼𝗸𝗲𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻 CTF builds upon Visa's existing network tokenization infrastructure. Network tokens replace PANs with tokens, reducing the risk of data breaches. CTF extends this by introducing: ▪️Device Binding → Associates a token with a specific device, ensuring that the token is only usable from that device. ▪️Cardholder Verification → Incorporates biometric or other verification methods to confirm the user's identity. This layered approach enhances security by ensuring that both the device and the user are authenticated. 𝗠𝗲𝗿𝗰𝗵𝗮𝗻𝘁 𝗕𝗲𝗻𝗲𝗳𝗶𝘁𝘀 🔹Reduced Fraud → Device binding and Strong Customer Authentication (SCA) significantly lower the risk of unauthorized transactions. 🔹Improved Customer Experience → Streamlines the checkout process by reducing the need for repeated authentication, leading to higher conversion rates. 🔹Enhanced Data Security → Minimizes the storage and transmission of sensitive card data, aligning with PCI DSS compliance requirements. 𝗔𝗰𝗵𝗶𝗲𝘃𝗶𝗻𝗴 𝗟𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗦𝗵𝗶𝗳𝘁 ▪️CTF enables merchants to achieve liability shift by incorporating SCA directly into the transaction process. ▪️By combining device binding with cardholder verification such as biometrics, CTF satisfies SCA requirements, resulting in liability shift from the merchant to the issuer. 𝗔𝗱𝘃𝗮𝗻𝗰𝗶𝗻𝗴 𝗣𝗮𝘆𝗺𝗲𝗻𝘁 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝘆 🔹Multi-Device Security → Ensures consistent security across various devices, accommodating the modern consumer's shopping habits. 🔹Future-Proofing → Positions merchants to adapt to evolving security standards and consumer expectations. 🔹Trust Building → Enhances consumer confidence by providing a secure and seamless payment experience. 𝗨𝘀𝗲 𝗖𝗮𝘀𝗲: 𝗦𝗲𝗰𝘂𝗿𝗶𝗻𝗴 𝗛𝗶𝗴𝗵-𝗩𝗮𝗹𝘂𝗲 𝗧𝗿𝗮𝘃𝗲𝗹 𝗕𝗼𝗼𝗸𝗶𝗻𝗴𝘀 📌 A travel booking platform integrates CTF to safeguard large, CNP transactions: ▪️Device Binding → When a customer first books a trip using the app, a network token is provisioned and bound to the user’s device ▪️Cardholder Verification → For every booking above a certain value threshold, biometric auth is triggered, verifying the identity of the user. ▪️SCA Compliance → By combining these elements, the transaction satisfies SCA, enabling liability shift to the issuer ▪️Friction When It Matters → Users expect and accept a bit more friction for high value purchases, especially if it improves security and trust. Sources: Visa, Thales, Howard Xiao 🚨Follow Jason Heister for daily #Fintech and #Payments guides, technical breakdowns, and industry insights.

A few weeks ago, I was auditing a large subscription company's payment data when I discovered something that made my blood run cold. "Stop everything you're doing. Right now." I interrupted their CEO mid-sentence. Without realizing it, they were about to get flagged by every major payment processor. One more week of this and their business would have started a vicious downward spiral from processor penalizations. Even scarier? This wasn't some rookie company. They had a world-class engineering team, but they were still making this devastating mistake. Here's what I uncovered: The company was aggressively retrying failed payments in the “Do Not Retry” category. “Do Not Retry” is a category of response codes returned by networks like Visa/Mastercard for transaction failures that should never be retried under any circumstances. For Visa, these are error codes are: Hard Decline Categories (Category 1): Code 04: Pick up card (no fraud) Code 07: Pick up card, special conditions Code 12: Invalid transaction Code 15: No such issuer Code 41: Lost card - pick up Code 43: Pickup card, stolen card Code 46: Closed account Code 57: Transaction not permitted to cardholder Code 62: Restricted card Code 78: No account Code 93: Transaction cannot be completed Visa explicitly prohibits retrying these transactions. The issuing bank will reject them 100% of the time. Risks you run retrying Hard Declines: 1) Financial Impact - Highest network fees ($0.10 per retry attempt) 2) Authorization Impact - Decreased Transaction Authorization Rate (TAR) - Fewer successful transactions over time 3) Merchant Status Impact - Risk of merchant account being flagged as "High Risk" - Processor relationship damage Retrying all failed payments blindly is a recipe for disaster. But a strategic retry approach can have huge revenue lift and upside. Here’s how you should think about retrying failed payments: 1) Analyze error codes: Not all declines are created equal. Soft declines (like insufficient funds) can and should be retried. Hard declines (like stolen cards) should never be retried. 2) Monitor TAR religiously: Your Transaction Authorization Rate is the canary in the coal mine. When it starts dropping, it's a warning sign that your retry strategy needs optimization. 3) Use machine learning for optimization: The most sophisticated companies like Redux Payments use AI to analyze hundreds of data points - from error codes to timing to geography - to determine the optimal retry strategy for each individual transaction. Remember: Payment processors are watching. Failure to comply with rules can trigger a cascade of problems that could cripple your ability to process payments. The good news? With the right strategy, these issues are completely preventable. A strategic approach to payment recovery can dramatically boost revenue while protecting your merchant account.

As 2025 begins, the payments landscape is set to undergo significant transformations. Here are six key trends to watch from our vantage point at Visa: 1. AI Enhances Fraud Detection: Artificial intelligence is becoming increasingly sophisticated in analyzing transaction patterns, enabling real-time identification of potential risks. Visa has been at the forefront of AI in payments for over 30 years, investing $3.3 billion in AI and data infrastructure over the past decade. This year, Visa introduced three new AI-powered risk and fraud prevention solutions as part of the Visa Protect suite, designed to reduce fraud across immediate account-to-account (A2A) and card-not-present (CNP) payments, as well as transactions on and off Visa’s network. 2. Biometric Authentication: The shift towards using biometrics—such as fingerprints and facial recognition—for authentication is reducing reliance on traditional PINs and passwords, enhancing both security and user convenience. Visa’s Payment Passkey exemplifies this trend, with partnerships like the one with QNB in Qatar marking the first implementation of biometric authentication in the world, setting a new standard for secure, seamless, and convenient online payments. 3. Real-Time Payments (RTP) Expansion: With initiatives like the U.S. Federal Reserve’s migration to ISO 20022 in March 2025 and the Single Euro Payments Area (SEPA) Instant Credit Transfer Scheme in Europe, real-time payments are becoming more prevalent, enabling instant transactions across borders. However, challenges such as fraud, security vulnerabilities, and lack of cross-border capabilities remain. Collaborations between governments and the private sector, including companies like Visa, are essential to address these issues and enhance security, interoperability, and cross-border functionality. 4. Streamlined Account-to-Account (A2A) Payments: Advancements are making A2A payments more efficient, offering consumers and businesses faster and more secure transaction methods. This evolution is driven by the need for more flexible and user-friendly payment options, reducing the complexities associated with traditional payment methods. 5. Cross-Border Payment Innovations: Globalization is driving the need for more efficient cross-border payment solutions. Efforts are underway to address the complexities, costs, and delays traditionally associated with international transactions, aiming to make cross-border payments as seamless as domestic ones. 6. Digital Identity Solutions: The development of robust digital identity frameworks is simplifying authentication processes, enhancing security, and reducing fraud. These solutions are becoming integral to the payments ecosystem, ensuring that transactions are both secure and user-friendly. Source: https://lnkd.in/gu4qfxjP #payments #trends #visa #2025