Commercial Banking Services

Payment processing is complex. The roles of payment processors and gateways often get mixed. Here is an explainer of the entire flow. Payment processing is the plumbing that enables money to move securely from the customer’s account to the business’s account whenever a digital payment is made. It covers everything that happens between the moment a customer clicks pay (or taps their card in-store) and the moment the merchant gets paid. 𝗧𝗵𝗲 𝗽𝗮𝘆𝗺𝗲𝗻𝘁 𝗳𝗹𝗼𝘄:  1.     Customer initiates a payment - either online at checkout or at a POS terminal in-store. 2.     Payment Gateway (e-commerce only): securely captures and encrypts the customer’s details, then passes them on. (At POS, the terminal does this role - no separate gateway needed.) 3.     Payment Processor: receives the payment data, and sends it to the acquiring bank (the merchant’s bank). 4.     The acquirer forwards it through the card network (Visa, Mastercard, etc.) to the issuing bank (the customer’s bank). 5.     The issuer checks funds, approves/declines, and sends a response back through the same chain. 6.     The processor returns the result to the merchant (via the gateway in e-commerce, or the terminal in-store). 7.     If approved, the merchant gets confirmation. Settlement (actual transfer of money) happens later, often in batches. 𝗣𝗮𝘆𝗺𝗲𝗻𝘁 𝗚𝗮𝘁𝗲𝘄𝗮𝘆:  A payment gateway is the entry point for e-commerce payments. — Captures card or wallet details online. — Encrypts and transmits securely. — Integrates with websites and apps to create smooth checkout experiences. Gateways are online only. In-store, the POS terminal takes over this role. 𝗣𝗮𝘆𝗺𝗲𝗻𝘁 𝗣𝗿𝗼𝗰𝗲𝘀𝘀𝗼𝗿: The payment processor is the engine that makes the transaction move, both online and offline. — Takes data from the gateway (online) or POS (in-store). — Routes it to the acquiring bank, networks, and issuer. — Manages authorization, settlement, and reporting. 𝗧𝗵𝗲 𝗲𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻:  — Originally, gateways and processors came from different providers, and merchants had to connect them separately - adding cost and complexity. — Over time, technology and demand for simpler setups led many providers to combine both roles. — Today, it’s common to get the full flow - from capturing the payment to moving the money - from a single partner, making payments smoother. Opinions: my own, Graphic source: Stripe Subscribe to my newsletter: https://lnkd.in/dkqhnxdg

Managing card transactions involves a lot of data. It’s important to understand not only what the different types of data mean, but also the underlying compliance responsibility associated with this. There are different levels of transaction processing and these are categorised based on the amount of data sent. In the industry, these distinctions are known as card processing Level 1, Level 2 and Level 3. These levels dictates how transactions get qualified or disqualified by the schemes. #didyouknow 💡 Each level is defined by the amount of information that is required or passed to complete a payment, with Level 1 having the lowest requirements and potentially the highest costs💡. ⬛ 𝐋𝐞𝐯𝐞𝐥 𝟏 data are the standard transaction details that pretty much every gateway/PSP capture. This typically refers to B2C transactions. ⬛ 𝐋𝐞𝐯𝐞𝐥 𝟐 data refers to more variable transaction information typically designed to support B2B payment processing. ⬛ 𝐋𝐞𝐯𝐞𝐥 𝟑 requires the capture of specific line item data that defines 𝐰𝐡𝐚𝐭 is being purchased, 𝐡𝐨𝐰 the sales takes place, 𝐰𝐡𝐨 is involved in the transaction, and 𝐰𝐡𝐞𝐧 it takes place. Level 2 and 3 transactions provide valuable data to both the merchant and the PSP and are predominantly use in B2B, government, airline industry and industry with large tickets items. 𝐒𝐨 𝐰𝐡𝐲 𝐝𝐨𝐞𝐬 𝐋𝟐 𝐚𝐧𝐝 𝐋𝟑 𝐝𝐚𝐭𝐚 𝐦𝐚𝐭𝐭𝐞𝐫? ⬛ Card transactions submitted with Level 2 and Level 3 card data can obtain lower interchange rates and provide merchants with a lower processing cost. ⬛The exact discount depends on the level of the transaction and, in some cases, the actual amount of the transaction. Savings can range between 0.2% to 1%+ on the interchange. ⬛The interchange fees make up 70%-85% of the card processing fees, hence why level 2/3 processing can be so vital. For merchants, benefiting from a level 2 or level 3 transaction discount requires layers of additional data to be captured at the time of a transaction and to be formatted according to the schemes rules. That said, not all PSPs are equipped with the technology to capture L2 or L3 data! #paymentsexperts, any perspectives to add🎤? --- 𝑳𝒊𝒌𝒆 𝒕𝒉𝒊𝒔 𝒄𝒐𝒏𝒕𝒆𝒏𝒕? 𝑯𝒐𝒘 𝒄𝒂𝒏 𝑷𝒂𝒚𝒑𝒓.𝒘𝒐𝒓𝒌 𝒉𝒆𝒍𝒑? 𝘞𝘦 𝘢𝘳𝘦 𝘗𝘢𝘺𝘮𝘦𝘯𝘵𝘴 𝘚𝘵𝘳𝘢𝘵𝘦𝘨𝘪𝘴𝘵𝘴 𝘤𝘰𝘯𝘯𝘦𝘤𝘵𝘪𝘯𝘨 𝘣𝘶𝘴𝘪𝘯𝘦𝘴𝘴𝘦𝘴 𝘵𝘰 𝘳𝘦𝘭𝘪𝘢𝘣𝘭𝘦 𝘍𝘪𝘯𝘵𝘦𝘤𝘩 𝘱𝘢𝘳𝘵𝘯𝘦𝘳𝘴. 𝘉𝘭𝘦𝘯𝘥𝘪𝘯𝘨 𝘰𝘶𝘳 𝘱𝘢𝘺𝘮𝘦𝘯𝘵𝘴 𝘬𝘯𝘰𝘸𝘭𝘦𝘥𝘨𝘦 𝘸𝘪𝘵𝘩 𝘰𝘶𝘳 𝘤𝘳𝘦𝘢𝘵𝘪𝘷𝘦 𝘧𝘭𝘢𝘪𝘳, 𝘸𝘦 𝘥𝘦𝘷𝘦𝘭𝘰𝘱 𝘴𝘵𝘳𝘢𝘵𝘦𝘨𝘪𝘤 𝘤𝘰𝘯𝘵𝘦𝘯𝘵 𝘢𝘯𝘥 𝘵𝘩𝘰𝘶𝘨𝘩𝘵 𝘭𝘦𝘢𝘥𝘦𝘳𝘴𝘩𝘪𝘱 𝘢𝘴𝘴𝘦𝘵𝘴 𝘧𝘰𝘳 𝘪𝘯𝘥𝘶𝘴𝘵𝘳𝘺 𝘭𝘦𝘢𝘥𝘦𝘳𝘴. 𝘞𝘦 𝘢𝘭𝘴𝘰 𝘥𝘦𝘭𝘪𝘷𝘦𝘳 𝘱𝘢𝘺𝘮𝘦𝘯𝘵𝘴 𝘵𝘳𝘢𝘪𝘯𝘪𝘯𝘨 𝘪𝘯 𝘰𝘶𝘳 𝘢𝘶𝘵𝘩𝘦𝘯𝘵𝘪𝘤, 𝘷𝘪𝘴𝘶𝘢𝘭𝘭𝘺 𝘦𝘯𝘨𝘢𝘨𝘪𝘯𝘨 𝘢𝘱𝘱𝘳𝘰𝘢𝘤𝘩. ✅ Follow Paypr.work [ˈpeɪpəwəːk] ✅ Let's collab 📧intro@paypr.work ✅ Visit: https://paypr.work

Processor 🆚 Network Tokens 𝐓𝐡𝐞 𝐢𝐦𝐩𝐚𝐜𝐭 𝐨𝐟 𝐍𝐞𝐭𝐰𝐨𝐫𝐤 𝐓𝐨𝐤𝐞𝐧𝐬 𝐢𝐧 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬: 𝐍𝐞𝐭𝐰𝐨𝐫𝐤 𝐓𝐨𝐤𝐞𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧 (𝐍𝐓) is an industry standard published by EMVCo. First introduced with the launch of ApplePay and the payment networks, NT is gaining traction in the Card-on-file and wallet markets 𝐏𝐫𝐨𝐜𝐞𝐬𝐬𝐨𝐫 𝐯𝐬 𝐍𝐞𝐭𝐰𝐨𝐫𝐤 𝐓𝐨𝐤𝐞𝐧𝐬: ▶ Processor Tokenization is a proprietary service offered by PSPs, Acquirers, and Processors to minimize a merchant’s PCI scope. The generated token, a replacement for a Personal Account Number (PAN), is restricted to the merchant and PSP limiting its value in the event of a data breach ▶ Network Tokenization goes further by generating tokens in cooperation with the Card Issuer and Card Network (i.e. Visa & Mastercard) to offer additional benefits to the merchant and protect the PAN throughout the value chain 𝐓𝐡𝐞 𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬 𝐨𝐟 𝐍𝐞𝐭𝐰𝐨𝐫𝐤 𝐓𝐨𝐤𝐞𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧 𝐟𝐨𝐫 𝐌𝐞𝐫𝐜𝐡𝐚𝐧𝐭𝐬: 🔸 𝐂𝐨𝐬𝐭 𝐎𝐩𝐭𝐢𝐦𝐢𝐳𝐚𝐭𝐢𝐨𝐧 - Merchants can optimize costs with Visa’s pricing changes. Security and compliance costs can be reduced since NT reduces the scope of PCI DSS. 🔸 𝐑𝐞𝐝𝐮𝐜𝐞𝐝 𝐅𝐫𝐚𝐮𝐝 - Implementing NT offers a higher level of security for CNP transactions. The impact of any potential data breach is greatly reduced since the data is useless when stolen (i.e. 26% decline in Fraud rates). 🔸 𝐈𝐦𝐩𝐫𝐨𝐯𝐞𝐝 𝐀𝐮𝐭𝐡𝐨𝐫𝐢𝐳𝐚𝐭𝐢𝐨𝐧 𝐑𝐚𝐭𝐞𝐬 - NT involves card issuers, unlike processor tokenization. NT can be limited in scope and offer additional payment details (i.e. 2.1% increase). 🔸 𝐁𝐞𝐭𝐭𝐞𝐫 𝐂𝐗 - Card issuers can update NT in real-time replacing the need for card members to update the information periodically (i.e. 35% of cardholders stop shopping after one decline). 𝐍𝐞𝐭𝐰𝐨𝐫𝐤 𝐓𝐨𝐤𝐞𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧 — 𝐚𝐧 𝐎𝐦𝐧𝐢𝐜𝐡𝐚𝐧𝐧𝐞𝐥 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲: 👉 𝐖𝐞𝐛𝐬𝐢𝐭𝐞 - Token information is captured by the merchant and shared with the Token Service Provider (i.e. VGS) and Card Issuer to validate the token and authenticate the transaction. Card Issuer then shares PAR along with the token to complete the transaction. 👉 𝐈𝐧-𝐀𝐩𝐩 - Token information is shared from the digital wallet with the token service provider and card issuer to validate and authenticate the requests. Card Issuers authorize the transaction and share customer PAR information back to the merchant PSP along with the token. 👉 𝐈𝐧-𝐒𝐭𝐨𝐫𝐞 𝐂𝐚𝐫𝐝𝐬 - The Payment Terminal captures the card data and shares it with the card issuer to authorize the transaction. Card issuers authorize transactions and share with merchants the response and PAR while the processor provides the Processor Token. Source: Deloitte — “Network Tokenization for Merchants” edited by Arthur Bedel 💳 ♻️ ( 👈 Follow this guy) Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ] 

Welcome to this Deep Dive edition of Fintech Wrap Up. In this issue, I will explore two powerful solutions—Visa Flexible Credential (VFC) and Mastercard One Credential—and share why these offerings are reshaping how we think about payment options. As a product manager in the payment industry, I’ve been keeping a close eye on both platforms because they each promise to simplify transactions and deliver a more personalized experience to cardholders. VFC is particularly exciting because it equips issuers and fintechs with the tools to let customers tap into multiple funding sources using just one Visa credential; it comes in two flavors (VFC Managed and VFC Self-Serve) and provides flexible APIs for enrollment, relationship management, rules setup, and transaction authorization. Meanwhile, Mastercard One Credential brings its own unique strengths by enabling cardholders to manage their various payment preferences directly within their issuer’s app—whether it’s debit, credit, prepaid, or installments—so they can easily pick and choose how they’d like to pay. Now, let’s talk benefits. Visa Flexible Credential allows issuers to broaden the services available to both new and existing cardholders, all with a single credential. That means easy enrollment, real-time cardholder preferences, and streamlined rules management—leading to an overall boost in customer satisfaction and transaction approvals. For its part, Mastercard One Credential focuses on delivering control, choice, and convenience by letting consumers combine different payment methods in one place, while also offering expanded payment options and the ability to personalize spending preferences. It’s designed to strengthen customer relationships with a seamless user journey that stays inside the familiar banking app. Both solutions aim to give financial institutions a leg up by fostering stronger loyalty and engagement, all while delivering the frictionless payment experiences that cardholders increasingly expect. I hope you enjoy this Deep Dive and walk away with a better understanding of how these flexible, all-in-one credentials might reshape your own approach to payments. #fintech #payments #cardpayments Prasanna Thomas Richard Panagiotis Tony Nicolas Arjun Dr Ritesh Sandra Leda Veronica Grant

🚨 𝐓𝐡𝐞𝐫𝐞 𝐚𝐫𝐞 𝟏𝟐 𝐭𝐲𝐩𝐞𝐬 𝐨𝐟 𝐩𝐚𝐲𝐦𝐞𝐧𝐭 𝐜𝐚𝐫𝐝𝐬 𝐚𝐧𝐝 𝐦𝐨𝐬𝐭 𝐩𝐞𝐨𝐩𝐥𝐞 𝐢𝐧 𝐩𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐨𝐧𝐥𝐲 𝐤𝐧𝐨𝐰 𝟑. → Debit: your money, instant deduction from your account. → Credit: bank's money, repay later. Rewards, travel, credit history. → Prepaid: load first, no credit line. Gift cards, payroll, travel. → Charge: no revolving balance. Full amount due each billing cycle. → Corporate: issued to companies for expense management. → Virtual: digital only. Single-use for e-commerce security. → Tokenized: your real card number is never shared. Apple Pay, Google Pay, Samsung Wallet all run on this. → EMV Chip: generates a unique cryptogram per transaction. Eliminated card-present fraud at scale. → Contactless: NFC. Now above 90% penetration in 60+ markets. → Dual-Interface: chip and contactless in one card. → Co-Branded: bank plus partner brand. Airlines, hotels, retailers. → Private Label: accepted in one merchant network only. Pure loyalty play. Each type determines which rails the transaction flows through, who bears the credit risk and how interchange is calculated. That is the part most people skip. Which type do you work with most? #payments #creditcard #fintech #paymentinfrastructure

🧭 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝗚𝘂𝗶𝗱𝗲: 𝗣𝗿𝗼𝗰𝗲𝘀𝘀𝗶𝗻𝗴, 𝗔𝗰𝗾𝘂𝗶𝗿𝗶𝗻𝗴 & 𝗜𝘀𝘀𝘂𝗶𝗻𝗴 Payments often look simple on the surface — tap, click, approve. Behind every transaction, however, sits a multi-layer financial infrastructure with clearly separated roles, responsibilities, and economics. Here’s a clean breakdown. 🧩 𝗣𝗥𝗢𝗖𝗘𝗦𝗦𝗜𝗡𝗚 — 𝗧𝗵𝗲 𝗜𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 𝗟𝗮𝘆𝗲𝗿 The technological backbone of payments. 🔹 Transaction authorization & validation 🔹 Message routing (ISO 8583 / ISO 20022) 🔹 Fraud checks & risk scoring 🔹 Clearing & settlement preparation 🔹 Card, wallet, A2A & cross-border flows ➡️ Processing doesn’t face the customer — it connects everyone else. 🧾 𝗔𝗖𝗤𝗨𝗜𝗥𝗜𝗡𝗚 — 𝗧𝗵𝗲 𝗠𝗲𝗿𝗰𝗵𝗮𝗻𝘁 𝗦𝗶𝗱𝗲 Everything that enables businesses to accept payments. 🔹 POS, SoftPOS / mPOS, e-commerce 🔹 Merchant onboarding (KYC / KYB) 🔹 Terminal provisioning & lifecycle (TMS) 🔹 Settlement to merchant accounts 🔹 Chargebacks & dispute handling ➡️ Acquirers translate payments infrastructure into merchant revenue. 💳 𝗜𝗦𝗦𝗨𝗜𝗡𝗚 — 𝗧𝗵𝗲 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗦𝗶𝗱𝗲 Where payment instruments are born and controlled. 🔹 Debit, credit, prepaid & virtual cards 🔹 Tokenization & lifecycle management 🔹 Balance, limits & real-time authorization 🔹 Customer support & disputes ➡️ Issuers own the customer relationship and credit risk. 🔁 𝗖𝗮𝗿𝗱 𝗧𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻 𝗙𝗹𝗼𝘄 (𝗦𝗶𝗺𝗽𝗹𝗶𝗳𝗶𝗲𝗱) 𝗔𝘂𝘁𝗵𝗼𝗿𝗶𝘇𝗮𝘁𝗶𝗼𝗻 → 𝗖𝗹𝗲𝗮𝗿𝗶𝗻𝗴 → 𝗦𝗲𝘁𝘁𝗹𝗲𝗺𝗲𝗻𝘁 ⏱️ Authorization: real-time (~2 seconds) 📦 Clearing: batch, end of day 💸 Settlement: T+1 / T+2 Approved ≠ settled — timing matters. 💰 𝗪𝗵𝗼 𝗘𝗮𝗿𝗻𝘀 𝗪𝗵𝗮𝘁? A typical $100 card transaction: 🔹 Merchant pays MDR (~2–3%) 🔹 Issuer earns the largest share (interchange) 🔹 Acquirer & network take smaller, fixed slices ➡️ Economics explain why issuers dominate cards — and why A2A keeps growing. 🧩 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀 & 𝗕𝗮𝗻𝗸𝗶𝗻𝗴 𝗘𝗻𝗮𝗯𝗹𝗲𝗿𝘀 Between processing, acquiring, and issuing sits another critical layer — enablers. Not replacing banks, networks, or processors. But connecting, orchestrating, and scaling them. 🔹 White-label issuing & processing 🔹 BIN sponsorship & compliance frameworks 🔹 Payment hubs & orchestration layers 🔹 API-driven connectivity across rails 🔹 Faster time-to-market for banks & fintechs ➡️ Enablers turn complex, regulated infrastructure into deployable platforms. 🧠 𝗧𝗵𝗲 𝗸𝗲𝘆 𝗶𝗻𝘀𝗶𝗴𝗵𝘁 Processing, acquiring, and issuing are not competitors. They are complementary layers of the same system. 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝗮𝗿𝗲 𝗻𝗼𝘁 𝗮 𝗳𝗲𝗮𝘁𝘂𝗿𝗲. 𝗧𝗵𝗲𝘆 𝗮𝗿𝗲 𝗮𝗿𝗰𝗵𝗶𝘁𝗲𝗰𝘁𝘂𝗿𝗲. Design the layers right — and everything on top scales.

💳 𝐓𝐡𝐞 𝐈𝐧𝐭𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐨𝐧 𝐭𝐨 𝐂𝐚𝐫𝐝𝐬 𝐢𝐧 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 Behind every card transaction is a powerful network of players — each performing a unique role to make payments seamless, secure, and scalable. ⸻ 🏦 𝐈𝐬𝐬𝐮𝐞𝐫𝐬 Banks or financial institutions that provide cards directly to consumers. Key Functions: → Approve and issue credit, debit, or prepaid cards → Authorize and settle transactions → Manage customer billing and rewards Revenue Sources: Interchange fees, card fees, interest income, and FX margins. Examples: #Citi #NAB #Westpac #ANZ #Chase 🏪 𝐀𝐜𝐪𝐮𝐢𝐫𝐞𝐫𝐬 They enable merchants to accept card payments. Key Functions: → Set up merchant accounts → Process and settle transactions → Manage chargebacks and fraud Revenue Sources: Merchant fees, processing charges, and value-added services. Examples: #CommonwealthBank #Westpac #Tyro #Nuvei 🌐 𝐂𝐚𝐫𝐝 𝐍𝐞𝐭𝐰𝐨𝐫𝐤𝐬 They form the central bridge between issuers and acquirers. Key Functions: → Route authorization requests → Manage settlement and disputes → Define interchange & scheme fees Revenue Sources: Scheme fees, cross-border charges, and fraud assessment. Examples: #Visa #Mastercard #AmericanExpress #eftpos 🔒 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐆𝐚𝐭𝐞𝐰𝐚𝐲𝐬 Gateways securely transfer payment data from merchant to acquirer. Key Functions: → Encrypt & route transaction data → Enable fraud checks and 3D Secure → Provide reporting dashboards Revenue Sources: Per-transaction and platform fees. Examples: #FatZebra #Adyen #DEUNA 🤝 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐀𝐠𝐠𝐫𝐞𝐠𝐚𝐭𝐨𝐫𝐬 They simplify payment acceptance for small and medium merchants. Key Functions: → Act as Merchant of Record → Handle onboarding, settlements & risk → Offer plug-and-play payment solutions Revenue Sources: Transaction margins and float management. Examples: #Stripe #Square #PayU #BillDesk Card payments may look simple from the outside, but under the hood, they rely on a complex, interconnected ecosystem. Every time you tap, swipe, or pay online — these players work together behind the scenes to move money securely and instantly across the global network. 🌏 #Payments #Fintech #DigitalPayments #TransactionBanking #Cards #Innovation #FinancialServices #B2BPayments

With embedded payments becoming “table stakes” for software companies and two-thirds of software companies planning to add or enhance payment acceptance in the next year*, what’s going to separate the winners from the rest? The second annual merchant survey from Jefferies offers some clues. According to the survey of US-based merchants, these are the top priorities when selecting a new payment processor: 1. Reliability 2. Customer Service 3. Fraud Prevention 4. Speed of Payment 5. Pricing 6. Easy-to-use Interface For vertically-focused SaaS platforms, this means partnering with a payments provider who helps you get high marks on reliability, customer service, and fraud prevention is key to increased payments adoption and the revenue that follows. That’s where Rainforest comes in. ⚙️ RELIABILITY Rainforest’s API, Web Components, and Payment Processing have 100% uptime over the last 12 months. And we keep the receipts — you can check our status page here: https://lnkd.in/gmYhpGPu 👩💻 CUSTOMER SERVICE We provide full-service, white-glove, support to platforms, and our Customer Success team provides the training, support materials, and pricing tools to ensure the platform is well-equipped to handle merchant support. 🕵️ FRAUD PREVENTION Rainforest configures transaction risk profiles at the platform level, so approval rates are optimized for the specific industry/vertical while minimizing losses. We’ve also added optional 3DS to further reduce fraud. ⏩ SPEED OF PAYMENT Card transactions are funded on the next business day (T+1) with an 11pm cutoff time. 💰 PRICING Our commercial model was designed to help platforms earn more while keeping merchant fees competitive. We bill the platform at a transparent interchange-plus rate. Platforms set the rate for merchants and keep the difference. 🎨 EASY-TO-USE INTERFACE Rainforest removes the guesswork by providing embeddable web components for every interaction including merchant onboarding, payment data collection, and reporting. What are your merchants saying about the platform payment experience? *Source: PYMNTS Platform Business Survey November 2023 https://lnkd.in/gh4RCfSA

𝗪𝗵𝗼’𝘀 𝗶𝗻𝘃𝗼𝗹𝘃𝗲𝗱 𝗲𝘃𝗲𝗿𝘆 𝘁𝗶𝗺𝗲 𝘆𝗼𝘂 𝘀𝘄𝗶𝗽𝗲 𝘆𝗼𝘂𝗿 𝗰𝗮𝗿𝗱? Every time you tap or swipe your card, it sets off a chain reaction involving multiple players, each playing a part in the transaction. If you work in FinTech, commerce, or payments, understanding this flow is foundational. Here's how it works 👇 𝗜𝘀𝘀𝘂𝗲𝗿 – 𝗬𝗼𝘂𝗿 𝗕𝗮𝗻𝗸 🔹This is the bank that issued your card (like Chase or Capital One). They approve or decline the transaction and handle risk, fraud, and (for credit) repayment. 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 → They collect most of the interchange fee. On a $100 transaction, they could take upwards of ~$1.50. 𝗔𝗰𝗾𝘂𝗶𝗿𝗲𝗿 - 𝗧𝗵𝗲 𝗠𝗲𝗿𝗰𝗵𝗮𝗻𝘁’𝘀 𝗕𝗮𝗻𝗸 ▪️The acquiring bank sets the merchant up to accept cards. They route transactions to the network and handle settlement into the merchant’s account. 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 → They keep part of the merchant discount fee. 𝗘𝘅𝗮𝗺𝗽𝗹𝗲𝘀 → Worldpay, Adyen, Chase Merchant Services 𝗡𝗲𝘁𝘄𝗼𝗿𝗸 – Visa, Mastercard, American Express 🔹The networks act like central switchboards and rule-makers. They define interchange rates, route transactions, and manage chargebacks. 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 → They charge network fees (a few basis points per transaction). 𝗣𝗿𝗼𝗰𝗲𝘀𝘀𝗼𝗿 – 𝗧𝗵𝗲 𝗧𝗲𝗰𝗵 𝗟𝗮𝘆𝗲𝗿 ▪️Processors move the data between the merchant and the rest of the chain. They handle transaction formatting, security, and uptime. 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 → Flat fees per transaction, or bundled as part of a full-stack PSP. 𝗘𝘅𝗮𝗺𝗽𝗹𝗲𝘀 → Fiserv, Stripe, Global Payments Inc. 𝗧𝗵𝗲 𝗣𝗮𝘆𝗺𝗲𝗻𝘁 𝗣𝗿𝗼𝗰𝗲𝘀𝘀 🔹You tap your card. 🔹The processor sends data to the network. 🔹The network forwards it to the issuer. 🔹The issuer approves/declines. 🔹The response flows back, and the transaction is settled. 🔹This happens in ~1.5 seconds. 𝗪𝗵𝗼 𝗴𝗲𝘁𝘀 𝗽𝗮𝗶𝗱? On a $100 transaction (estimates only): ▪️Issuer: ~$1.50 ▪️Network: ~$0.10–$0.15 ▪️Acquirer + Processor: ~$0.30 ▪️Merchant: gets ~$98.05 ▪️This is why merchants obsess over payments, and why infrastructure players fight for better margins. 𝗪𝗵𝘆 𝘁𝗵𝗶𝘀 𝗺𝗮𝘁𝘁𝗲𝗿𝘀 If you’re in FinTech or payments, understanding this gives you: → Negotiating power with partners → The ability to spot margin leaks → Insight into who’s disrupting what in the value chain Source: Stripe 🚨Follow Jason Heister for daily #Fintech and #Payments guides, technical breakdowns, and industry insights.

💳 Ever wondered what really happens after you tap your card or click “Pay”? When you pay $100 on Amazon, the merchant doesn’t actually receive the full $100. That payment travels through multiple systems in just a few seconds: ✅ POS / Payment Gateway ✅ Acquiring Bank ✅ Card Network (Visa/Mastercard) ✅ Issuer Bank ✅ Merchant Settlement Along the way, each participant performs a specific role—from authorization and fraud checks to routing and settlement—and earns a small portion of the transaction fee. In this cheat sheet, I break down: 🔹 End-to-end card payment transaction flow 🔹 Authorization vs Settlement 🔹 Role of the Merchant, Acquirer, Card Network & Issuer 🔹 How a $100 transaction is distributed among all participants 🔹 Typical MDR (Merchant Discount Rate) breakdown 🔹 Why merchants never receive the full payment amount If you’re a Java Developer, Backend Engineer, Payments Engineer, FinTech Professional, or Solution Architect, understanding this flow is essential. Every payment API, microservice, and banking integration ultimately fits into this transaction lifecycle. 📖 Explore more Banking & Payments content: 🌐 https://codewithvenu.com What Payments or Banking topic should I explain next? #CodeWithVenu #Payments #Banking #FinTech #Visa #Mastercard #PaymentGateway #Merchant #AcquiringBank #IssuerBank #SystemDesign #SoftwareArchitecture #Java #SpringBoot #BackendDevelopment #APIs #DistributedSystems #Microservices #PaymentProcessing #TechEducation