Uber is now letting riders pay with cash, but only its most seasoned, top-rated drivers will get the green light to accept these trips. As Uber tests cash trips, when a verified rider books through the app, they’ll receive a clear cash notification signaling that this option is available.
This move comes as millions of Americans remain shut out of traditional banking. In 2023, nearly 19 million U.S. households — about 14% — were underbanked, according to a Federal Deposit Insurance Corporation report. For many, cash isn’t just a preference — it’s a necessity.
Key Takeaways
Uber launched cash payments in select U.S. cities to serve underbanked and unbanked riders—roughly 14% of U.S. households—who don’t have access to traditional banking or digital payment methods.
Originally tested in Cincinnati and San Antonio, the pilot was expanded in April 2025 to include Dallas, Orlando, and Fort Myers, signaling strong demand and early success.
Riders must complete identity verification, and only experienced, highly rated drivers can accept cash. Uber has restricted cash transactions between 11 pm and 6 am to reduce safety risks.
Beyond inclusion, Uber’s cash rollout supports its competitive positioning in markets where cash remains dominant, like India and parts of the UK, helping it regain market share from local players.
Uber Tests Cash Trips in U.S. Cities to Serve Riders Without Bank Access
In just over a decade, Uber has reshaped urban mobility by pioneering a cashless, app-driven ride-hailing model. Yet, this digital-first approach has inadvertently excluded millions of Americans who lack access to credit cards or bank accounts. To bridge this divide, Uber launched “cash trips” in March 2025, initially in Cincinnati and San Antonio, and has now expanded the pilot to five U.S. cities. This move underscores Uber’s commitment to making transportation accessible to everyone, regardless of payment preferences or financial inclusion status.
An estimated 19 million U.S. households—around 14%—were underbanked in 2023, relying heavily on cash for everyday transactions, according to the Federal Deposit Insurance Corporation. Meanwhile, Uber reports that roughly 15% of American households prefer or need alternatives to digital payments. By integrating cash payments, Uber aims to eliminate a key barrier to mobility for this significant segment, offering a lifeline to those traditionally underserved by fintech innovations.
An Uber spokesperson said the company believes transportation should open doors for everyone. But they recognize a simple truth: not everyone has a bank account or credit card, and many still rely on cash. That’s why Uber is piloting a new cash payment option, aiming to make rides more accessible for all while creating better earning opportunities for drivers.
What began on March 11, 2025, as a limited experiment in Cincinnati and San Antonio has rapidly evolved. On April 23, Uber tripled the scope of its cash-based pilot, adding Dallas, Orlando, and Fort Myers, Florida, to the list of participating markets. This expansion reflects strong early interest from both riders and drivers and signals Uber’s resolve to test the waters in diverse urban environments before committing to a nationwide rollout.
Cash trips mimic standard Uber rides but with key adjustments. Riders must first complete a verification process, including ID checks and a selfie, to qualify for cash payments. Once verified, the app flags cash—based trips, and drivers know in advance that the fare will be collected in physical currency. Drivers tap “Collect Payment” at trip end and enter the exact amount received, and Uber handles any discrepancies by crediting overpayments or debiting underpayments from the rider’s account.
Uber’s cash feature is opt-in for drivers and restricted to “experienced, highly rated” partners to mitigate risks. Drivers can also opt out entirely through their app preferences if they prefer to remain cashless. To address safety concerns, Uber recommends secure storage of collected cash, frequent deposits, and use of in-app safety tools, such as “Record My Ride” and 24/7 incident reporting. These measures aim to balance earning opportunities with driver well-being.
For underbanked and unbanked riders, cash trips dismantle a critical barrier to app-based mobility. No longer constrained by the absence of credit cards, users can access reliable transportation at the same speed and convenience as digital payments. Uber’s policy of crediting any overpaid amount to the rider’s Uber Cash balance and managing shortfalls directly through the app ensures financial accountability without leaving either party out of pocket.
Uber’s cash experiment is far from its first. The company accepts cash in markets such as Brazil and piloted cash payments in Hyderabad, India, back in 2015 to challenge local leader Ola, which then commanded roughly 80% of India’s organized cab market. More recently, Uber extended cash payments across most UK cities—excluding London—after successful trials in Birmingham, Leicester, Nottingham, and Stoke, aligning its UK operations with international practice.
In the UK, a Treasury Committee report stopped short of mandating cash acceptance but labeled the shift to card-only services a “wake-up call” for policymakers. Cash campaigner Ron Delnevo of the Payment Choice Alliance praised Uber’s move as evidence they “now believe in the future of cash in the UK”. The report also highlighted vulnerable groups, such as survivors of domestic abuse, who rely on cash to avoid digital tracking, a dependence described as “life and death” by Sam Smethers of Surviving Economic Abuse.
Handling cash introduces new operational complexities. Drivers worry about personal security when carrying notes and coins, and Uber prohibits cash transactions between 11 pm and 6 am to further reduce risk. Riders must be verified, and drivers do not provide change—overages are credited electronically. These constraints, along with the need to safeguard cash, may limit adoption rates among both drivers and passengers until trust is firmly established.
Uber’s cash rollout also represents a strategic counter to entrenched local competitors. In India, players like Ola built their dominance on cash payments long before digital wallets gained traction, capturing roughly 80% of ride-hailing volume in 2025. By offering cash trips, Uber hopes to win back market share in regions where digital adoption lags and secure its position in emerging economies.
Uber has yet to disclose how long the U.S. pilot will run or when additional cities might gain access to cash trips. The company emphasizes that it is “carefully monitoring how it’s going and gathering feedback from riders and drivers” before deciding on a broader deployment. Early indicators from rider satisfaction and driver earnings will likely shape whether cash becomes a permanent fixture of Uber’s payment options portfolio.
Uber Technologies, Inc., launched in March 2009 by Garrett Camp and Travis Kalanick, has grown into a global powerhouse in transportation and mobility. Headquartered in San Francisco, this publicly traded company now operates across 70 countries and 10,500 cities, linking more than 150 million active users each month with a network of 6 million drivers and couriers. From ride-hailing and food delivery to package drop-offs and freight logistics, Uber handles an average of 28 million trips every single day — and has completed over 47 billion trips since its service debut in 2010.
Following its initial public offering on May 10, 2019, on the New York Stock Exchange under the ticker UBER, the company has pursued growth and profitability, reporting US $43.98 billion in revenue, US $2.799 billion in operating income, and US $9.856 billion in net income for the 2024 fiscal year, with US $51.24 billion in assets, US $21.56 billion in equity, and 31,100 employees worldwide. In addition to its core ride-hailing service, Uber’s platform supports on-demand food delivery, courier services, and freight transport, and the company has committed to becoming a fully electric, zero-emission platform by 2040 as part of its long-term sustainability goals.
Conclusion
By reincorporating cash—the century-old bedrock of commerce—into its high-tech platform, Uber underscores a powerful lesson: true mobility requires inclusivity of all payment methods. As the cash trips pilot unfolds, it offers a compelling model for addressing digital inequality and expanding access to millions who have been sidelined by purely cashless ecosystems.
Whether this experiment blossoms into a global standard remains to be seen, but its potential to reshape the future of urban transportation is undeniable.
Costco-Affirm partnership to Launch Flexible Buy Now, Pay Later Option for Big-Ticket Online Purchases
Costco is making it easier to shop big and pay small, over time. The retail giant has partnered with Affirm to roll out a new Buy Now, Pay Later (BNPL) option for online purchases ranging from $500 to $17,500.
Unlike the familiar “pay-in-four” plans with zero interest, this new option comes with interest rates ranging from 10% to 36% APR. For example, a $500 purchase at a 20% APR over six months will come with interest, but also much more manageable monthly payments..
All payments are made through Affirm’s app or website, with the added convenience of setting up automatic payments so you never miss a due date. Costco’s move brings more purchasing power straight to your fingertips—on your terms.
Key Takeaways
Costco and Affirm have partnered to offer Buy Now, Pay Later (BNPL) financing for online purchases between $500 and $17,500. This lets members choose customized installment plans instead of paying upfront or using credit cards.
The plans come with interest rates ranging from 10% to 36% APR, based on the shopper’s credit profile. Payments can be spread over 3 to 36 months and are managed through Affirm’s app or website.
This move helps Costco boost online sales by making high-ticket items like appliances and furniture more affordable. The setup is integrated into Costco.com, keeping the checkout process familiar and easy to use.
While BNPL offers budgeting flexibility, it carries risks such as interest charges and potential credit impact from missed payments. Affirm does not charge late fees, but missed payments can still be reported to credit bureaus.
Costco-Affirm Partnership to Expand Flexible BNPL Payment Options for Online Shoppers
In early May 2025, leading fintech provider Affirm and global warehouse retailer Costco announced a landmark multi-year partnership to integrate a buy now, pay later (BNPL) option directly into Costco’s eCommerce platform. This partnership will let all Costco members defer payment on online purchases, choosing transparent, customized installment plans rather than relying on traditional credit cards.
The news, first confirmed by Affirm in a shareholder letter on May 8, 2025, marks a significant expansion of BNPL into the wholesale retail sector, reflecting broader shifts in consumer expectations around payment flexibility and eCommerce growth.
Buy now, pay later solutions have surged in popularity amid rising interest rates and inflationary pressures, providing consumers an alternative to revolving credit. As of late 2024, the U.S. The BNPL market was estimated at $175 billion, with 38 percent of American shoppers having used BNPL services, up from 24 percent the previous year. At the same time, Affirm itself has scaled rapidly: by March 31, 2025, the company reported 22 million active users and partnerships with over 358,000 merchants, underscoring the broad acceptance of installment-based payment models in the modern retail ecosystem.
Under the terms of the multi-year agreement announced on May 14, 2025, Affirm will serve as the exclusive pay-over-time provider for Costco.com in the United States. After a quick, real-time eligibility check at checkout, eligible members can choose from monthly payment plans through Affirm for orders between $500 and $17,500. Costco intends for this service to launch immediately, giving its online offerings a competitive edge in the eCommerce landscape.
Costco members shopping online simply add at least $500 of eligible items to their cart, then select “Affirm” as the payment method during checkout. Affirm conducts an instant eligibility assessment—based on a soft credit inquiry—to determine available plan options. Once approved, shoppers see a menu of installment schedules tailored to their order value, enabling them to choose the plan that best fits their budget. This seamless integration ensures that members remain within the familiar Costco.com interface throughout the process.
The new BNPL offering allows repayment over three to thirty-six months, with APRs ranging from 10 percent to 36 percent depending on the member’s credit profile and purchase amount. Unlike many financing products, Affirm imposes no hidden fees or late penalties, though missed payments may carry credit-reporting consequences. Members can manage installments via the Affirm app or website, and they have the option to set up automatic payment deductions to ensure timely repayment and avoid potential credit impacts.
For Costco, the partnership presents an opportunity to enhance customer loyalty and drive higher average order values (AOV). By offering interest-bearing installment plans, the retailer makes its large-ticket items, such as appliances, patio furniture, and electronics, more accessible, potentially reducing cart abandonment rates.
Pat Suh, Affirm’s Senior Vice President of Revenue, noted that as summer approaches, more consumers are turning to Affirm to get ready for the season, whether it’s purchasing outdoor entertaining essentials like a new barbecue or patio furniture, investing in a storage shed, or upgrading appliances. She highlighted that Costco members, in particular, understand the benefits of planning and buying in bulk. Affirm is excited to provide them with a transparent alternative to traditional credit, helping them manage larger purchases with confidence and without hidden fees.
Shoppers stand to gain greater flexibility in budgeting for significant purchases, spreading payments across pay periods rather than shouldering lump-sum costs. The transparency of Affirm’s pricing—displaying total repayment amounts and schedules up front—helps members better plan their finances. Additionally, with no late or hidden fees, consumers avoid unpredictable charges often associated with credit cards. The auto-pay feature further simplifies repayment, reducing the risk of missed installments and subsequent credit consequences.
Affirm’s collaboration with Costco reinforces its broader strategy of partnering with diverse merchants. Earlier this year, Affirm teamed up with airline-owned network UATP to provide BNPL for travel bookings and with fashion retailer Revolve Group to embed installment options at checkout. Beyond these verticals, Affirm counts eCommerce giants Amazon and Shopify, among others such as Apple, in its network of merchant partners, demonstrating the versatility and scalability of its payment platform. Meanwhile, competitors like Klarna, Afterpay, and PayPal’s Pay in 4 continue to vie for share in both digital and physical retail channels.
Despite the benefits, BNPL services have drawn scrutiny over consumer debt levels and regulatory oversight. An AP News investigation found rising consumer struggles to repay BNPL loans, with credit losses up 17 percent quarter over quarter at leading providers and concerns that financially vulnerable groups may overextend themselves. Moreover, many BNPL plans do not report on-time payments to credit bureaus, though late or defaulted installments often do, leading to “phantom debt” and potential credit score damage for users unaware of the implications.
Affirm Holdings, Inc. is an American financial services and technology company headquartered in San Francisco, California, founded in 2012 by Max Levchin, Nathan Gettings, Jeffrey Kaditz, and Alex Rampell, and publicly traded on the Nasdaq under the ticker symbol AFRM. Since its inception, Affirm’s mission has been to deliver honest financial products that improve lives—a guiding principle reflected in its transparent, fee-free lending solutions and commitment to consumer-friendly financing.
As of March 31, 2025, Affirm served over 22 million users and partnered with more than 358,000 merchants, processing approximately $28 billion in payments annually across the United States, Canada, and the United Kingdom. Its suite of products—including point-of-sale installment plans like “Pay in 4,” the Affirm Card debit solution, and the Affirm Money savings account—combined with strategic alliances with retailers such as Amazon, Walmart, Shopify, and Apple, and technology-driven underwriting powered by machine learning, has enabled Affirm to expand responsibly while minimizing borrower defaults.
Costco Wholesale Corporation (Nasdaq: COST) is an American multinational membership-only warehouse club operator headquartered in Issaquah, Washington. Founded on September 15, 1983, by James “Jim” Sinegal and Jeffrey H. Brotman in Seattle, Washington, the company pioneered a high-volume, low-cost retail model offering a curated selection of national and private-label goods to businesses and individual consumers.
Costco operated 890 membership warehouses as of September 1, 2024, spanning the United States, Mexico, Canada, Asia, Europe, and Oceania. In fiscal year 2024, Costco recorded net sales of approximately $250 billion—a 5% increase year-over-year—and net income of $7.36 billion, driven by strong bulk sales and membership fee revenue. Its global membership totaled 136.8 million in 2024, supported by approximately 333,000 employees across its operations.
Conclusion
Costco’s new partnership with Affirm adds a financing option that gives members more control over how they pay for large online purchases. By offering flexible installment plans and clear terms, the service makes it easier to budget without relying on traditional credit.
While BNPL comes with interest and some risk, the integration of this option into Costco’s checkout process reflects changing expectations in how consumers want to shop and pay. As both companies continue to grow, this move strengthens Costco’s eCommerce strategy and expands Affirm’s reach into the wholesale retail space.
Affirm, a leading payment company headquartered in London, has forged a powerful alliance with UATP—the global payment network backed by the world’s major airlines. This Affirm-UATP partnership puts Affirm’s flexible installment plans at the fingertips of UATP’s extensive network, spanning airlines, rail services, and travel agencies across the U.S., U.K., and Canada.
As demand for flexible payment solutions in travel surges, this collaboration gives UATP merchants a major edge, empowering their customers to break up travel expenses into manageable, transparent payments. No late fees. No hidden costs. Just simple, smart financing.
For UATP, this means more completed checkouts, higher conversions, and boosted revenue. For travelers, it builds trust, confidence, and loyalty, with crystal-clear pricing and quick, hassle-free eligibility checks. This isn’t just a payment option—it’s a game-changer for the travel industry.
Key Takeaways
Affirm’s pay-over-time installment plans are being integrated into UATP’s global payment network, allowing airlines, rail operators, and travel agencies to offer flexible financing directly at checkout.
Eligible customers can choose from personalized installment plans ranging from short-term, interest-free options to 36-month terms, with APRs starting at 0%. All plans include transparent pricing and no late fees.
The partnership gives travel brands a tool to increase bookings and raise average order values, especially as consumer demand softens. Affirm data shows that merchants offering financing typically see a 70% lift in order value and reduced cart abandonment.
By offering an alternative to traditional credit cards, Affirm and UATP aim to make travel more affordable and less stressful, especially for consumers looking to avoid revolving debt or high-interest charges.
Affirm-UATP Partnership to Bring Pay-Over-Time Financing to Global Travel Merchants
On May 1, 2025, Affirm (NASDAQ: AFRM) announced a strategic global partnership with the Universal Air Travel Plan (UATP), the payment network owned and operated by the world’s leading airlines.
This collaboration integrates Affirm’s flexible, transparent pay-over-time financing directly into UATP’s network, enabling thousands of travel merchants – including airlines, rail carriers, and travel agencies—to offer customers the option to finance travel expenses in installments. Affirm is a leading point-of-sale financing provider whose travel and ticketing business grew 40 percent year-over-year as of December 31, 2024, while UATP has long served as the premier payment network for airline-centric transactions worldwide.
With Affirm’s transparent financing model and UATP’s established global infrastructure, the partnership will modernize travel payments, enhance consumer affordability, and boost booking conversions amid ongoing market uncertainties.
Under the agreement, merchants on the UATP network will integrate Affirm’s pay-over-time options directly into their booking and checkout flows, allowing customers to split travel expenses into equal, manageable payments without hidden or late fees.
After a quick, soft credit check to determine eligibility, consumers can select from customized payment plans with term lengths ranging from short-term, interest-free installments to longer-term financing of up to 36 months, with rates starting as low as 0 percent APR. At launch, UATP merchants in the U.S., U.K., and Canada can access integration details and merchant support resources via dedicated web pages provided by Affirm and UATP.
In late 2024, Affirm expanded its partnership with Priceline to enable pay-over-time financing across one of the world’s largest online travel agencies. Additionally, in August 2024, Hotels.com integrated Affirm’s pay-later solution into its booking flow, allowing consumers to split hotel costs into installments.
By choosing Affirm at checkout, travelers can book flights, accommodations, and ancillary services immediately, then spread the cost over time in equal installments that align with their cash-flow needs.
Unlike traditional credit cards, which often impose compounding interest and hidden fees, Affirm’s model guarantees a transparent fee structure with no penalties for on-time payments, reducing financial stress and improving budgeting predictability.
The ability to finance travel purchases mitigates sticker shock and encourages itinerary upgrades, enabling travelers to consider premium seating, additional services, or extended stays. This flexibility can also reduce reliance on high-interest credit cards, potentially leading to lower default rates and a more inclusive payment landscape.
Merchants on the UATP network stand to benefit from increased average order values and improved conversion metrics when offering pay-over-time options. Affirm’s merchant analytics indicate that retailers generally see a 70 percent increase in average order value and a 28 percent reduction in cart abandonment when financing is available at checkout. Affirm reports that over 90 percent of its transactions come from repeat users, meaning the loyalty generated by its platform among travelers who value financial flexibility.
Not only this, but transparent pricing and straightforward eligibility checks can also result in deeper customer trust and repeat bookings, driving long-term revenue growth for travel brands. Merchants can also leverage promotional financing offers, such as zero-interest holiday campaigns, to spur incremental demand during off-peak travel windows.
The partnership is unfolding against a backdrop of softening consumer demand across the travel sector. In early May 2025, American Airlines withdrew its full-year guidance due to persistent softness in domestic travel demand and broader economic headwinds. Delta Air Lines reported “solid” first-quarter results but noted that growth stalled amid global economic uncertainties. European carriers—including Air France-KLM, Lufthansa, and Virgin Atlantic—have all reported declines in U.S.-bound bookings attributed to factors such as American border policy changes, tariffs, and overall economic volatility.
UATP data further indicates that 44 percent of consumers will abandon a transaction if their preferred payment method is unavailable, underscoring the critical need for diverse, consumer-friendly payment options. Post-pandemic travel rebounds are leveling off, and discretionary spending remains under pressure, making financing solutions an attractive lever to reignite bookings.
UATP has previously collaborated with multiple buy-now-pay-later and installment payment providers to diversify its payment offerings. In September 2024, UATP partnered with BNPL provider Klarna to enable flexible airline payment options via its network. Earlier, in April 2021, UATP expanded its arrangement with PayPal to include the “Pay In 4” installment solution for airfare purchases.
In March 2019, UATP teamed with Uplift to offer installment payments for travelers booking flights and accommodations. By partnering with multiple BNPL providers, UATP has positioned itself as a neutral facilitator that accommodates both legacy and innovative payment methods, ensuring member merchants can tailor financing offerings to diverse consumer preferences.
Max Levchin, Founder and CEO of Affirm, emphasized the consumer benefits of the collaboration, noting that travel accounts for 10% of global spending, and it can often be both costly and stressful. Traditional credit options only add to the burden with hidden fees and unnecessary complexity. He stated that people deserve better, and this partnership with UATP will deliver exactly that: the transparent, flexible payment solutions that Affirm is known for, offered as a turn-key option for leading travel brands. He added that they’re excited to help make travel a little less stressful for everyone while supporting growth across the industry.
Ralph Kaiser, President and CEO of UATP, added that partnering with Affirm will make travel more accessible for customers who prefer not to use traditional credit cards. He emphasized that travelers are increasingly seeking safer, alternative payment options, and this collaboration meets that demand by offering a solution that hasn’t been available to them until now.
Affirm’s travel and ticketing segment experienced nearly 40 percent year-over-year growth through the end of 2024, which shows consumer uptake of pay-over-time financing in the travel industry. The company has extended credit to over 50 million consumers globally, with repeat transactions accounting for more than 90 percent of volume, illustrating strong consumer satisfaction and platform stickiness.
From a merchant perspective, data indicates that adding Affirm can boost average order values by up to 70 percent while reducing cart abandonment rates by approximately 28 percent, critical performance indicators for travel operators aiming to optimize conversion.
Merchants participating in the UATP network can integrate Affirm’s pay-over-time option into their online and mobile booking channels through a simple onboarding process supported by UATP and Affirm technical teams. During checkout, customers select Affirm, complete a quick eligibility check based on a soft credit inquiry, and immediately view personalized payment plan options, ranging up to 36 months at rates starting from 0 percent APR, all displayed with clear terms and no hidden fees.
This seamless process preserves the merchant’s booking flow and minimizes friction by eliminating the need for customers to leave the checkout page or complete lengthy applications, thereby enhancing overall user satisfaction.
Affirm also recently partnered with Costco to offer members similar payment flexibility. Through this collaboration (similar to that with UATP), Costco shoppers can now split eligible purchases into 36 monthly installments, making it easier to manage larger expenses with transparent, predictable payments.
About Affirm
Affirm Holdings, Inc., founded in 2012 by PayPal co-founder Max Levchin with Nathan Gettings, Jeffrey Kaditz, and Alex Rampell, is redefining the future of finance. Headquartered in San Francisco and publicly traded on NASDAQ under AFRM, Affirm is a powerhouse in financial technology.
The company runs a cutting-edge point-of-sale payment network and offers innovative financial products—including installment loans, a modern debit card, and a high-yield savings account—serving customers across the U.S., Canada, and the U.K. Affirm isn’t just offering alternatives to traditional credit—it’s reshaping how people pay, save, and spend. By underwriting each transaction with a mix of credit data and machine-learning models, and charging no late or hidden fees, Affirm has grown into the largest U.S.-based “buy now, pay later” lender, serving 22 million users and 358,000 merchant partners and processing $28 billion in payments annually.
Affirm went public on January 13, 2021, raising about $1.2 billion in its initial offering. In fiscal 2024, the company generated $2.32 billion in revenue but posted a net loss of $518 million as it continued to invest in technology and expansion, supported by $9.52 billion in assets and $2.73 billion in equity.
To fuel growth beyond North America, Affirm launched in the U.K. in November 2024—its first market outside the Americas—offering both interest-free and interest-bearing installment plans at merchants such as Alternative Airlines and Fexco. In early 2025, it extended its exclusive Shopify partnership into Canada and partnered with FIS to integrate its “Affirm Card” pay-over-time solutions into banking clients’ offerings—moves that underscore CEO Max Levchin and CFO Robert O’Hare’s drive to scale the business responsibly on a global stage.
Universal Air Travel Plan, Inc. (UATP) is a global closed-loop payment network dedicated exclusively to travel-related corporate expenses, including airline, hotel, rail, and travel agency payments. Established in 1936 as the Air Travel Card by American Airlines and the Air Transport Association, UATP pioneered a buy-now, pay-later model for ticket purchases and has since evolved into a multicarrier network owned and operated by a consortium of global airlines. Headquartered in Washington, D.C., with regional offices in Los Angeles, São Paulo, Miami, New Delhi, Beijing, Geneva, Tokyo, and Singapore, UATP issues cards through participating airlines and travel management companies to corporate account holders worldwide.
UATP’s core product suite includes the Travel Protection Plans, UATP Corporate Card, and comprehensive payment and data solutions—such as DataStream®, DataMine®, DataView®, and Ceptor®—that streamline transaction processing, reporting, and reconciliation for issuers and account holders. Serving over 300 airlines, rail networks, and travel agencies—accounting for approximately 97 % of scheduled global available seat kilometers—UATP processes around $15 billion in annual payments, delivering secure and efficient financial technology to thousands of corporations and merchants.
Under the leadership of President and CEO Ralph Kaiser, who has more than doubled network charge volume to over $18 billion since 2003, UATP continues to expand its ecosystem through strategic partnerships—including integrations with B2B airfare aggregator Mystifly and Uber Wallet—to enhance payment flexibility and data transparency for corporate clients.
Conclusion
The Affirm–UATP partnership marks a major step forward in reshaping how travel is paid for in today’s economic climate. With Affirm’s installment plans now accessible through the UATP network, merchants gain a tool that meets evolving customer expectations while helping improve conversions and revenue.
Travelers, in turn, get more financial flexibility and clearer cost control without relying on traditional credit cards. As economic pressures continue to affect consumer spending, this collaboration offers a practical solution that benefits both merchants and customers while modernizing the payment experience across the global travel sector.
Lucchese Bootmaker has partnered with Teamwork Commerce to modernize and streamline the in-store operations of its luxury retail stores. In this rollout, Teamwork’s omnichannel retail platform will enable store associates to deliver better and more personalized customer service across over 100 POS (point of sale) devices. The system, powered by cloud technology and real-time data, will ensure consistent and connected experiences across all retail touchpoints.
Another highlight of this partnership is that Lucchese will utilize Teamwork’s integration with Adyen to offer better and more secure payment processing. Features like pay-by-link will ensure all of this with flexible checkout options on any device, helping prevent lost sales and supporting customer-preferred payment methods. The end result? A seamless, secure, more personalized, and high-end shopping experience that aligns with that of Lucchese’s premium brand standards.
Key Takeaways
Lucchese Bootmaker has undertaken a full-scale overhaul of its in-store operations by implementing Teamwork Commerce’s cloud-based retail platform, combined with Adyen’s integrated payment solutions. This covers all 31 retail stores and includes deployment of over 100 mobile POS devices to support real-time customer service and inventory visibility, bringing every store onto a unified, data-driven retail infrastructure.
Nowadays, where 75% of consumers expect seamless cross-channel engagement but only 25% feel satisfied with their current retail experiences, Lucchese’s move directly addresses this gap. The shift ensures that customers can transition smoothly between online, mobile, and physical channels, with consistent service and fulfillment options at every stage of the purchase journey.
Before this deployment, associates were limited by static registers and fragmented systems. The new platform provides associates with handheld tools for mobile checkout, clienteling, and order management—enabling personalized service delivery, faster transactions, and fewer lost sales opportunities. Centralized inventory and customer data allow store staff to operate with more agility and respond to customer needs in real time.
Adyen’s Pay-by-Link and broader payment infrastructure, Lucchese now offers flexible, secure, and device-agnostic checkout options. This minimizes friction and cart abandonment while supporting global and local payment methods. Furthermore, the system’s ability to aggregate payment insights and unify returns improves financial oversight and allows for more informed, data-driven decisions across sales and service operations.
Lucchese Modernizes In-Store Operations with Scalable Omnichannel and Payment Technology
Lucchese Bootmaker, an iconic American manufacturer renowned for its luxury cowboy boots and western apparel since 1883, is looking ahead to a complete digital transformation of its in-store operations. In partnership with Teamwork Commerce, Lucchese will deploy an advanced omnichannel retail solution integrated with Adyen’s payment platform across all its U.S. stores. This partnership will equip over 100 point-of-sale (POS) devices with cloud-based, mobile capabilities—empowering associates with real-time data and delivering a unified, personalized shopping experience for customers.
Founded in San Antonio, Texas, in 1883, Lucchese has built a reputation for handcrafted boots of unparalleled quality and style. Today, the brand operates 31 retail stores across eight states—including Texas, Montana, North Carolina, Georgia, Colorado, Tennessee, Oklahoma, and New Mexico—providing customers with an immersive western lifestyle experience.
Over its more than 140-year history, Lucchese has expanded beyond boots to include custom hats, apparel, and accessories, all while maintaining a commitment to craftsmanship. But as the time changes, so are the demands and expectations of the consumer. Research indicates that 75% of consumers now expect a seamless omnichannel experience, engaging across mobile, online, and in-store channels without friction. However, only 25% report being satisfied with their current retail interactions.
Plus, a GE Capital Retail Bank study found that 81% of shoppers begin their purchasing journey online before visiting a store, highlighting the necessity for unified data and customer insights across channels.
For premium retailers like Lucchese, meeting these expectations is critical to maintaining brand loyalty and driving growth. An omnichannel strategy ensures that associates have the tools to engage customers effectively, regardless of where or how they choose to shop.
Before this deployment, Lucchese associates were tethered to fixed-position registers, limiting mobility and personalized engagement. Inventory visibility was siloed, leading to potential stockouts or missed upsell opportunities. Payment processing relied on disparate systems, elongating checkout times and increasing the risk of abandoned transactions.
These operational barriers not only hampered the associate’s ability to provide high-touch service but also constrained Lucchese’s ability to gather actionable customer insights in real time. In an era where immediacy and personalization drive satisfaction, overcoming these hurdles was essential.
Teamwork Commerce’s cloud-native platform delivers a complete suite of retail management tools—including Mobile POS, Order Management System (OMS), Inventory Control, Clienteling, Secure CRM, Reporting & Analytics, and RFID Solutions—that operate from a centralized database with real-time synchronization across channels.
Key features include:
Mobile POS: Handheld devices for associates to browse inventory, place orders, and complete transactions anywhere in the store;
Omnichannel Order Management: Unified visibility into online and in-store orders for seamless order fulfillment;
Real-Time Inventory Control: Instant stock updates to prevent overselling and enable efficient transfers;
Clienteling & CRM: Personalized customer profiles and purchase history at associates’ fingertips to drive loyalty;
Reporting & Analytics: Advanced dashboards to track sales performance, inventory turnover, and customer behavior;
RFID Solutions: Automated stock counts and shrinkage reduction, enhancing inventory accuracy.
By consolidating these capabilities onto a single platform, Lucchese can eliminate legacy system complexities, reduce maintenance overhead, and scale operations with minimal friction.
A critical component of the rollout is the integration of Adyen’s payment technology, notably its Pay-by-Link functionality. This feature enables sales associates to generate secure, branded payment links that customers can complete on any device, whether on a tablet, smartphone, or desktop.
Lucchese’s new system supports a wide range of payment options, including global credit cards, e-wallets, and local payment methods, all managed through a single interface. This flexibility allows customers to choose the payment method that works best for them. The platform also includes branded, device-agnostic payment pages designed to reduce friction during checkout and lower the chances of cart abandonment.
In addition, an integrated returns management system helps maintain consistency between in-store and online transactions, improving the overall customer experience. To support ongoing improvement, the solution provides access to aggregated payment data, offering insights that help drive more informed business decisions.
Adyen’s platform processed over €1 trillion in global transactions in 2024, underlining its capacity to support enterprise-scale operations with robust security and compliance frameworks. The first phase of the deployment involved rolling out Teamwork Commerce and Adyen across over 100 POS devices in Lucchese’s flagship and regional stores, covering every retail location in the U.S. This simultaneous, multi-site rollout underscores the scalability and agility of a cloud-based approach.
The rollout began with a pilot phase in two key Texas stores to test system workflows and train staff. After confirming the setup worked as planned, the next stage involved expanding to mid-size locations in Colorado, Georgia, and North Carolina. The final phase covered all 31 stores, including smaller boutiques in Montana and New Mexico, bringing the system fully online across the network. With centralized device management and remote setup options, updates and new features can be rolled out quickly, helping Lucchese keep its retail operations current and consistent.
Lucchese’s mobile setup removes the need for fixed registers, giving store associates the flexibility to support customers more effectively. They can offer product demonstrations, provide styling suggestions, check inventory across all locations, reserve items, arrange home delivery, and complete purchases anywhere in the store.
For customers, this leads to shorter wait times, more personalized service based on past purchases, and flexible fulfillment options like shipping from the store, in-store pickup, or curbside collection. It also ensures a consistent experience across both online and in-store channels. These improvements help Lucchese meet the expectations of premium shoppers and stand out in a crowded retail space.
According to Tim Latiolais, Chief Financial Officer of Lucchese Bootmaker, delivering seamless customer experiences is now paramount. The company is committed to pairing its premium products with best-in-class shopping journeys to maximize customer satisfaction. He notes that their partnership with Teamwork Commerce will arm store associates with cutting-edge technology, enabling faster, more efficient checkout transactions.
Amber Hovious, Vice President of Marketing and Partnerships at Teamwork Commerce, highlighted Lucchese’s dedication to delivering exceptional in-store experiences without sacrificing the brand’s storied heritage and craftsmanship. She’s confident that their commerce platform will transform the point-of-sale journey for Lucchese customers and looks forward to deepening their collaboration.
Davi Strazza, President of North America at Adyen, explained that by creating a unified commerce infrastructure—bridging in-store and online channels—they’ve simplified everything from terminal upkeep to seamless returns. This approach accelerates deployments and ensures a consistent experience no matter where customers shop. Coupled with features like Pay by Link, expanded display screens for richer customer engagement, and on-the-fly shopper analytics, Lucchese now offers a more intelligent, interconnected retail journey, all supported by a robust, scalable platform poised for future growth.
The global Point of Sale (POS) market, as per recent industry projections, is witnessing substantial expansion. It is expected that the market will grow from a valuation of approximately USD 33.41 billion in the year 2024 to an estimated USD 110.22 billion by the year 2032. This corresponds to a Compound Annual Growth Rate (CAGR) of around 16.1%. The primary contributing factors for this growth trajectory are the rising adoption of cloud-based POS systems along with the rapid shift in consumer preference towards digital modes of payment. This change is particularly visible across developing markets as well as in mature economies, where operational efficiency and seamless customer interactions have become top business priorities.
In the current retail sector, organisations that have chosen to implement a more structured and comprehensive omnichannel strategy are reaping higher benefits. It has been observed that such retailers are able to retain nearly 89% of their customers on average, which stands in sharp contrast to the 33% retention rate recorded by those who follow a less integrated or inconsistent omnichannel approach. This clear disparity highlights the importance of having systems that can effectively unify physical and digital customer touchpoints, resulting in better engagement and long-term loyalty.
With the rapid evolution of digital wallets and increasing customer inclination towards alternate payment modes, it has now become essential for modern retail businesses to adopt platforms that are designed to cater to these changing needs.
Solutions such as Adyen and unified commerce platforms like Teamwork Commerce are gaining widespread relevance due to their ability to streamline operations and support businesses in delivering consistent customer experiences. Retailers aiming to maintain competitiveness and improve operational outcomes are therefore showing a strong preference for such tools that allow them to consolidate payments and customer data efficiently.
Teamwork Commerce is a leading provider of cloud-based retail management solutions, specializing in omnichannel technology that unifies point-of-sale (POS), order management (OMS), inventory control, CRM, and analytics. Founded in 2013 and headquartered in Clearwater, Florida, the company leverages over 30 years of retail technology expertise to help brands deliver seamless, personalized customer experiences across physical and digital channels. Its mobile-first, iOS-native platform is trusted by global retailers such as ASICS, Moose Knuckles, and The Row, offering real-time data visibility and operational agility across more than 40 countries.
Designed for scalability and flexibility, Teamwork Commerce supports a wide range of retail environments—from high-end fashion boutiques to stadiums and museums. The platform includes advanced features like RFID-powered self-checkout, cross-channel loyalty programs, and integrations with over 100 third-party systems, including payment providers like Adyen. By centralizing customer and inventory data, Teamwork enables retailers to streamline operations, reduce friction, and enhance the customer journey at every touchpoint.
About Lucchese
Lucchese Bootmaker, founded in 1883 by Italian immigrant Salvatore Lucchese in San Antonio, Texas, is a renowned American manufacturer and retailer of luxury cowboy boots and western apparel. Initially catering to military officers at Fort Sam Houston, the company quickly gained a reputation for exceptional craftsmanship and quality. Over the years, Lucchese boots have been favored by notable figures, including President Lyndon B. Johnson, Bing Crosby, and John Wayne. In 1986, the company relocated its headquarters to El Paso, Texas, where it continues to produce handcrafted boots using traditional techniques.
Lucchese’s commitment to quality is evident in its meticulous boot-making process, which involves over 150 steps, including hand-stitching and the use of brass and lemonwood pegs for durability and comfort. The company’s proprietary twisted cone last ensure a superior fit, distinguishing Lucchese boots in the market. Today, Lucchese operates multiple retail locations across the United States and continues to uphold its legacy of excellence in western footwear.
About Adyen
Adyen N.V. is a Dutch financial technology company founded in 2006 by Pieter van der Does and Arnout Schuijff. Headquartered in Amsterdam, Adyen offers a unified, end-to-end payment platform that enables businesses to accept e-commerce, mobile, and point-of-sale payments globally. The company serves leading brands such as Meta, Uber, eBay, H&M, and Microsoft, providing services that include payment processing, risk management, local acquiring, and card issuing, all within a single infrastructure.
Adyen’s platform supports over 100 payment methods and operates across online and in-person channels, facilitating seamless customer experiences through its Unified Commerce solution. As of 2023, the company processed €970.1 billion in transaction volume and employs over 4,000 people across 28 global offices. Publicly traded on Euronext Amsterdam (ticker: ADYEN), Adyen continues to expand its global footprint, offering scalable and data-driven solutions to meet the evolving needs of modern commerce.
Conclusion
Lucchese’s decision to implement Teamwork Commerce’s cloud-based retail platform, along with Ayden’s integrated payment solutions, reflects a strategic and forward-looking approach to modern retail challenges. By equipping all its stores with mobile POS systems, unified order and inventory management, and flexible payment capabilities, the company has effectively addressed long-standing operational limitations and elevated its ability to serve customers across multiple channels. These enhancements not only improve in-store efficiency and reduce checkout friction but also align with evolving consumer expectations for personalization, convenience, and consistency across touchpoints.
Given the increasing importance of omnichannel readiness in the luxury retail segment, Lucchese’s transformation places it in a strong position to deliver premium shopping experiences while maintaining operational agility. With these foundational systems now in place, the brand is better prepared to scale, adapt, and continue its legacy of quality craftsmanship, supported by modern retail infrastructure.
Adyen Partners with JCB to Launch Advanced Card-on-File Tokenization, Setting a New Global Standard for Secure Online Payments
Adyen, the preferred financial technology platform for the world’s leading businesses, has partnered with JCB Co., Ltd. to launch JCB’s cutting-edge card-on-file (COF) tokenization service. This innovation is designed to significantly boost the security of online credit card transactions for e-commerce merchants.
As the first payments platform to implement JCB’s COF tokenization both in Japan and worldwide, Adyen continues to lead in delivering secure, seamless payment experiences. This Adyen-JCB partnership rollout marks a major step forward in protecting sensitive payment data, offering JCB cardholders and merchants enhanced safety, reduced fraud risk, and greater peace of mind in every transaction.
Key Takeaways
Adyen is the first global platform to implement JCB’s COF tokenization, replacing sensitive card data with secure network tokens. This significantly lowers the risk of data breaches for merchants and protects cardholder information.
The tokenization system keeps customer card details current, removing the need for manual updates and helping merchants maintain higher authorization rates by reducing transaction failures due to outdated card data.
With over 90% of credit card fraud in Japan tied to stolen payment data, the rollout of JCB’s COF tokenization aims to reduce fraud risks and increase trust in e-commerce transactions.
The collaboration between Adyen and JCB is positioned for worldwide rollout, reflecting broader trends in digital payment security. Data from Visa supports the value of tokenization, with measurable reductions in fraud and increases in approval rates.
Adyen-JCB Partnership to Launch Global Card-on-File Tokenization for Safer Online Payments
Adyen, a global financial technology platform, has teamed up with JCB Co., Ltd., Japan’s leading credit card issuer and acquirer, to launch JCB’s Card-on-File (COF) tokenization service. With this move, Adyen becomes the first company to offer and support JCB’s tokenization technology both in Japan and internationally. The service is designed to improve the security of credit card payments for online merchants by replacing stored card details with secure tokens.
COF tokenization is a security method that replaces stored payment details—like card numbers and expiration dates—with a unique, secure number called a “network token.” This token is created with the cardholder’s permission and is used instead of the actual card information when making payments.
Because merchants don’t store the real card details, the risk of data breaches is much lower. The network token is always linked to the most up-to-date card information, which means customers don’t have to manually update their details when a card expires or is replaced. This helps reduce payment failures, makes the checkout process faster, and improves the chances of a transaction being approved.
As cashless payments and online shopping have become more common in Japan, credit card fraud has also increased. More than 90% of the total financial losses from these incidents are linked to stolen payment card data. To address this problem, JCB has introduced its COF tokenization service. The goal is to strengthen the security of online payments and help protect both JCB cardholders and merchants from fraud.
Tac Watanabe, Executive Officer and Head of Brand Infrastructure Headquarters at JCB, highlighted the critical importance of this initiative amid the rapid rise in e-commerce. As online transactions surge, so too does the threat of fraud stemming from compromised card data. To counter this, JCB is committed to reducing breach-related risks through COF tokenization, ensuring customer card details remain secure and up to date while enhancing the overall payment experience.
Watanabe expressed enthusiasm about launching this effort in partnership with Adyen, a global leader in COF solutions. He affirmed that this collaboration marks a significant first step, with plans underway to expand COF token adoption on a global scale.
Roelant Prins, Chief Commercial Officer at Adyen, echoed the enthusiasm surrounding the partnership, expressing pride in collaborating with JCB to launch their COF tokenization services both in Japan and internationally. This joint initiative marks a significant step forward in strengthening security and improving convenience for JCB cardholders, aligning with the accelerating growth of the global e-commerce market.
Prins highlighted Adyen’s focus on making tokenization technology available across more payment methods, including mobile. The goal is to improve data security for consumers while helping merchants see better transaction approval rates.
The rollout of COF tokenization is expected to make a noticeable difference in how payments are handled:
Stronger Security: Sensitive card information is replaced with secure tokens, lowering the risk of data breaches.
Simpler Checkout for Customers: Since tokens stay linked to the most current card details, customers don’t have to update their payment information when their card changes.
Better Approval Rates: With up-to-date card data, transactions are more likely to be approved, which helps both shoppers and merchants.
Global Potential: This partnership also opens the door for wider use of COF tokenization in other regions, meeting the growing need for secure and efficient digital payments.
According to data shared by Visa, tokenized transactions have driven a 30% drop in online fraud compared to traditional card number (PAN) transactions, while also delivering a 4% increase in authorization rates. These gains are especially significant in an environment where up to 44% of digital transactions are abandoned due to friction during the payment process.
In card-not-present scenarios, such as online purchases, Visa reports that tokenization yields more than a 3% boost in authorization rates, underscoring its critical role in streamlining payments and improving conversion without compromising security.
About Adyen
Adyen N.V. is a Dutch financial services and technology company founded in 2006 and headquartered in Amsterdam. Listed on Euronext Amsterdam (ticker ADYEN), Adyen provides a unified payments platform that enables businesses to accept e-commerce, mobile, and point-of-sale transactions around the globe. Its end-to-end infrastructure combines gateway, risk management, acquiring and issuing services, supporting international credit cards, local cash-based methods and mobile wallets through a single integration. In fiscal 2024, Adyen reported revenues of €1.996 billion, net income of €925 million and total assets of €11.425 billion, supported by a workforce of 4,345 employees operating across more than twenty countries.
Founded by Arnout Schuijff and Pieter van der Does, the name “Adyen”—meaning “start again” in Sranan Tongo—reflects its origins as the founders’ second venture after Bibit. After obtaining its pan-European acquiring license in 2012, Adyen steadily expanded its acquiring capabilities through additional licenses in Brazil, Singapore, Hong Kong, and beyond, culminating in its Amsterdam IPO on 13 June 2018. Profitability was achieved as early as 2011, and by 201,7 the platform was processing over €100 billion in annual payment volume. The company has since forged marquee partnerships—most notably becoming eBay’s primary payments processor in 2018—while continuing to add new regions and payment methods to its global footprint.
About JCB
JCB Co., Ltd. (formerly Japan Credit Bureau) is the only international payment brand based in Japan, headquartered in Minato-ku, Tokyo. Founded in 1961, JCB offers a comprehensive suite of payment solutions—including credit, debit, prepaid, contactless card services, merchant acquiring, risk management, and loyalty programs—through a single integration platform. Its global acceptance network spans over 54 million merchants and more than one million cash advance locations across over 190 countries and territories. JCB cards are now issued in 18 countries and regions, serving over 164 million cardmembers worldwide.
Since its inception on January 25, 1961, JCB has evolved into a private company with a capital base of ¥10.6 billion and a workforce of 4,373 employees as of June 2023. Under the leadership of President and CEO Takayoshi Futae, JCB’s core operations encompass credit card issuance, financing, collections, and gift card services. Through its associate, Japan Card Network Co., Ltd. (CARDNET), JCB manages a robust authorization and transaction-processing infrastructure that supports over 150 million cardmembers and an acceptance network of approximately 43 million merchants worldwide, driving an annual transaction volume of ¥43.3 trillion.
Conclusion
The partnership between Adyen and JCB to launch card-on-file tokenization is a timely and strategic response to growing concerns around payment security in the e-commerce space. By replacing sensitive card data with secure network tokens, the initiative directly addresses the rising threat of fraud and reduces operational friction for both merchants and consumers. As the first global rollout of JCB’s COF tokenization service, this collaboration not only strengthens payment security in Japan but also sets the stage for broader adoption worldwide. With proven benefits like improved authorization rates and reduced fraud, COF tokenization is poised to play a central role in the next phase of secure digital payments.
Mastercard and Corpay have entered into a strategic partnership that includes a $300 million investment by Mastercard for a minority stake in Corpay’s cross-border payments division. This investment, which gives Mastercard an estimated 3% ownership, values the division at approximately $10.7 billion—the first time an external party has formally valued the unit.
The Mastercard-Corpay partnership builds on the companies’ prior collaboration and significantly expands their partnership. As part of the agreement, Corpay will become the exclusive provider of currency risk management and integrated high-value cross-border payment services for Mastercard’s financial institution clients. In return, Mastercard will exclusively offer virtual card solutions to Corpay’s customer base.
Additionally, the partnership will extend the reach of Mastercard’s Move payments platform, enabling it to serve more small and medium-sized businesses, including those already working with Corpay, in previously untapped markets.
Key Takeaways
Mastercard invested $300 million in Corpay’s cross-border unit, valuing the division at $10.7 billion. This marks the first external valuation of the business and signals Mastercard’s intent to expand into high-value, account-to-account corporate payments.
Corpay will become the exclusive provider of large-ticket cross-border payments and currency risk tools for Mastercard’s banking clients. In return, Mastercard will be the exclusive virtual card provider for Corpay’s corporate customers.
The deal enables Mastercard Move to serve Corpay’s small and mid-sized business clients in new global markets, supporting diverse payment types and delivery channels through a network of over 10 billion endpoints.
The collaboration combines Corpay’s FX and large transaction expertise with Mastercard’s global network and card infrastructure, allowing both firms to address the full range of cross-border B2B payment needs more effectively.
Mastercard-Corpay Partnership: $300M Investment to Expand Cross-Border B2B Payment Capabilities
On April 29, 2025, Mastercard and Corpay unveiled an expansion of their long-standing collaboration, marking a strategic partnership aimed at revolutionizing corporate cross-border payments.
Under the terms of the agreement, Mastercard has invested $300 million for an approximately 3% equity stake in Corpay’s cross-border business, valuing that unit at US$ 10.7 billion and implying a 20× forward EBITDA multiple.
As part of the deal, Corpay will serve as the exclusive provider of industry-leading currency risk management and integrated large-ticket cross-border payments solutions to Mastercard’s financial institution customers, enabling banks to embed sophisticated hedging strategies, multi-currency collections accounts, and vertically specialized workflows into their digital platforms. In turn, Corpay will exclusively offer Mastercard’s virtual card programs to its corporate clients, extending virtual cards’ benefits (such as fraud mitigation, automation, and detailed spend data) into Corpay’s global payment network.
In addition to high-value flows, Mastercard Move’s cross-border services—introduced in October to support near-real-time, predictable, and transparent corporate disbursements—will be offered to Corpay’s small and mid-sized business clients across a range of new markets. Mastercard Move leverages a network that reaches over 10 billion endpoints in more than 200 countries and territories, supporting delivery channels such as bank accounts, mobile wallets, cards, and cash-pick-up locations, along with multiple payment types to meet diverse customer requirements.
The partnership promises to simplify payment workflows, enhance transparency, and offer end-to-end choices for banks and businesses of all sizes, seamlessly bridging card-based and non-carded channels.
Mastercard and Corpay have maintained a collaborative relationship for over a decade, initially focusing on virtual card issuance and commercial card programs in the United States. These early efforts generated more than $50 billion in annual purchase volume for Mastercard-branded fleet and prepaid commercial cards, underscoring the scale and success of their joint initiatives.
The new agreement, announced from Mastercard’s headquarters in Purchase, New York, and Corpay’s headquarters in Atlanta, Georgia, elevates the collaboration to encompass end-to-end cross-border payment solutions—marrying Corpay’s award-winning foreign exchange expertise with Mastercard’s expansive global network and digital payment infrastructure.
In an increasingly competitive B2B payments industry, both firms identified a strategic opportunity to leverage complementary strengths. Corpay’s cross-border business specializes in high-value, account-to-account transfers and sophisticated currency risk management tools that help banks, institutional investors, and corporates hedge foreign exchange exposure and streamline large-ticket disbursements at scale.
Meanwhile, Mastercard’s core expertise lies in secure, high-volume card networks and digital innovation for small-ticket remittances and corporate payables. By aligning these capabilities, the combined offering addresses the full spectrum of cross-border needs—from high-value corporate transactions to remittances and vendor payouts—within a unified, transparent framework that emphasizes speed and risk mitigation.
At the core of this partnership is a shared focus on creating synergy. Speaking at a JPMorgan investor conference, Chief Financial Officer Sachin Mehra noted that the collaboration brings significant mutual benefits. Mastercard can enhance its card-based network through Corpay’s platform technology and expertise in FX management, while Corpay gains access to Mastercard’s global distribution network and digital treasury solutions.
Chief Commercial Payments Officer Raj Seshadri emphasized that the partnership also extends Mastercard’s capabilities in the expanding cross-border B2B payments market, enabling financial institution partners to better meet the non-card payment needs of their commercial clients with greater simplicity and efficiency.
Ron Clarke, Chairman and CEO of Corpay, expressed strong enthusiasm about the investment and new partnership with Mastercard. He stated that they are thrilled about the collaboration and anticipate that Mastercard’s backing of their cross-border solutions will significantly accelerate the growth of their financial institution revenue.
Why Mastercard Invested in Corpay
Mastercard’s recent investment in Corpay’s cross-border payments unit is about more than money—it’s about strategy. With just a 3% stake, Mastercard is signaling big ambitions in the high-value, cross-border payments space, an area where Corpay excels.
Mastercard CFO Sachin Mehra explained the move as a highly “synergistic” fit. While Mastercard leads in global, lower-value card payments through its financial institution partners, Corpay specializes in large, account-to-account corporate transactions, especially in the U.S.
By joining forces, the two companies are combining strengths. Corpay gains access to Mastercard’s global distribution and digital payment tools. Mastercard, in turn, taps into Corpay’s advanced platform, currency management, and big-ticket cross-border capabilities.
This partnership isn’t just an extension of their decade-long relationship—it’s a major strategic upgrade. Corpay will now be the exclusive provider of large-scale cross-border payment services and currency risk management to Mastercard’s banking clients. And in return, Corpay will offer Mastercard’s virtual cards exclusively to its business customers.
The timing of the investment is notable. Mastercard’s latest earnings showed a slowdown in cross-border volume growth—a potential red flag. Partnering with Corpay gives Mastercard a new edge in a fast-growing space and helps offset regional slowdowns with new capabilities.
For Corpay, this means greater reach, more revenue opportunities from banks, and a tighter integration into Mastercard’s ecosystem. For Mastercard, it’s a strategic move into the non-carded, high-value B2B payments market—one that’s only getting bigger.
About Mastercard
Mastercard Inc. is an American multinational financial services corporation founded in 1966 and headquartered in Purchase, New York. It operates one of the world’s leading payments networks, processing transactions for credit, debit, and prepaid cards, as well as ATM and digital payment systems under brands such as Cirrus, Maestro, Mondex, and Masterpass. In fiscal year 2024, the company reported revenues of US$ 28.2 billion, an operating income of US$15.6 billion, and a net income of US$ 12.9 billion, with total assets of US$ 48.1 billion, equity of US$ 6.49 billion, and approximately 35,300 employees worldwide.
Guided by Chair Merit Janow and CEO Michael Miebach, Mastercard’s mission is “to connect and power an inclusive digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible.” Beyond strengthening its core payment services, the company continues to innovate, launching a carbon footprint calculator for cardholders in April 2021 to help measure and reduce emissions, and in April 2025, unveiled global stablecoin acceptance capabilities, positioning itself at the forefront of programmable and secure digital currency solutions.
About Corpay
Corpay, Inc. (NYSE: CPAY) is a publicly traded S&P 500 corporate payments company headquartered in the Terminus 100 building in Atlanta, Georgia, U.S. Originally founded in 2000 and formerly known as FLEETCOR Technologies, the business officially rebranded as Corpay in March 2024 upon completing a strategic name-change initiative. Today, Corpay employs roughly 11,200 people and serves over 800,000 business clients across more than 100 countries, processing upwards of $145 billion in annual spend through a network of more than one million vendors.
Corpay delivers a full spectrum of payments and expense-management solutions—including commercial card programs, cross-border payments with integrated FX risk management, accounts-payable automation, and fuel & lodging payment services—under brands such as Comdata, PayByPhone, Sem Parar, and Paymerang (acquired May 2024 for $475 million). In fiscal 2024, the company posted revenue of $4.0 billion, operating income of $1.79 billion, net income of $1.00 billion, total assets of $17.9 billion, and shareholders’ equity of $3.15 billion.
Conclusion
The expanded partnership between Mastercard and Corpay reflects a targeted move to address the growing demand for efficient, transparent, and secure cross-border B2B payments. By combining Mastercard’s global reach and card network with Corpay’s expertise in large-scale transactions and currency risk management, the collaboration is designed to deliver broader capabilities to banks and businesses of all sizes.
This agreement not only strengthens each company’s position in the competitive payments landscape but also builds a framework to support future growth in both carded and non-carded payment channels.
Ordering your favorite pizza just got even easier. Cash App-Dominos partnership to bring Cash App Pay to the checkout experience, giving customers a fast, flexible, and seamless way to pay for their pizza, wings, drinks, and more. Now, customers can use their Cash App balance as a payment option when ordering through the Domino’s app. As one of Cash App Pay’s first major restaurant partnerships, this launch marks a bold step in redefining how the next generation pays for takeout, putting convenience and choice front and center.
With a significant portion of Gen Z and Millennials preferring mobile payment options, Domino’s anticipates that this move will enhance the ordering experience for its digital-savvy customers.
Key Takeaways
Domino’s and Cash App Join Forces to Deliver a Smarter, Faster Checkout Experience
Domino’s has officially partnered with Cash App, enabling customers to use Cash App Pay for orders placed through the Domino’s app—ushering in a new era of digital convenience. This collaboration marks Cash App’s first nationwide restaurant integration, signaling its bold entry into the food service space.
With 79% of Gen Z and 85% of Millennials using mobile apps to order fast food, the move directly caters to the habits of a mobile-first generation. The partnership offers a flexible, streamlined alternative to traditional payment methods by allowing payments straight from users’ Cash App balance.
For Cash App, this is a strategic expansion into the restaurant industry. For Domino’s, it’s a gateway to a massive, engaged customer base, building loyalty through convenience and meeting customers where they already are: on their phones.
Cash App-Dominos Partnership Is A Major Step Toward Digital Payment Expansion
In a landmark announcement on May 8, 2025, Block’s Cash App Pay revealed its integration with Domino’s Pizza, becoming the first-ever nationwide pizza restaurant partner to do so. This integration allows customers to use Cash App Pay as a seamless checkout option when ordering their favorite pizzas, wings, drinks, and more from Domino’s.
With the growing reliance on mobile apps for food orders, especially among younger demographics, this collaboration is poised to enhance the ordering experience for a significant portion of Domino’s customer base. Recent studies reveal that convenience and speed are top priorities for younger consumers, with 85% of Millennials and 79% of Gen Z relying on mobile apps to place their fast-food orders. This trend mirrors the fact that digital tools have become essential in shaping their dining habits.
Mark Messing, Vice President of Global Digital Marketing at Domino’s, highlighted the brand’s ongoing focus on customer convenience, noting that a smooth and hassle-free checkout process is a key part of that mission. He expressed enthusiasm about the new payment option, saying it offers customers yet another simple and efficient way to pay for their orders.
Cash App views this collaboration as a strategic opportunity to deepen its reach with younger, digitally native consumers. Alex Fisher, Head of Revenue for North America at Cash App Commerce, expressed excitement over the partnership, noting that Domino’s is the first national pizza chain to integrate Cash App Pay. He emphasized that the move allows Cash App to deliver added value by meeting the expectations of next-gen customers who prioritize speed, convenience, and flexible payment options at checkout.
The integration is simple: during checkout on the Domino’s app, customers now have the option to choose Cash App Pay as their payment method. This feature is designed to provide a seamless and simple way to pay by using funds directly from their Cash App balance. This move not only enhances the user experience but also positions both companies to capitalize on the increasing demand for digital payment solutions in the food industry.
For Domino’s, this partnership offers several strategic advantages. First, it diversifies payment options, catering to customers who prefer digital wallets over credit or debit cards. Second, by tapping into Cash App’s youth-focused user base, Domino’s can drive incremental order volume, as younger consumers often demonstrate higher frequency in app-based transactions. Lastly, the integration reinforces Domino’s digital-first reputation, positioning the brand at the forefront of payment innovation in the quick-service restaurant (QSR) sector.
From Cash App’s perspective, joining forces with a brand like Domino’s expands merchant acceptance beyond traditional Square merchants and services like Lyft. This enhances Cash App Pay’s utility, drives daily engagement among its 57 million users, and strengthens the network effect that incentivizes broader adoption by both consumers and merchants.
This also comes in the backdrop of robust restaurant industry growth. According to the National Restaurant Association, U.S. foodservice sales are projected to reach $1.106 trillion in 2024, representing a 5.4% increase over the previous year and marking the industry’s highest annual sales ever. This growth is driven by a combination of pent-up consumer demand, evolving dining preferences, and significant investment in technology by restaurant operators seeking to streamline operations and enhance customer experiences.
The culture of takeout and delivery has also evolved dramatically. A recent report by the National Restaurant Association finds that 75% of restaurant traffic now involves takeout, including drive-thru and pickup, with 95% of consumers citing speed as a critical factor in their decision-making. Notably, 60% of Gen Z and Millennials report increased takeout activity over the past year, reflecting a broader societal shift toward convenience-driven dining solutions. Partnerships like the one between Cash App Pay and Domino’s align perfectly with these consumer expectations.
In parallel, the popularity of digital wallets has also maintained its position in a growing market, with platforms like Apple Pay, Google Pay, PayPal, Venmo, and Zelle vying for consumer attention in various use cases. Cash App Pay distinguishes itself through deep integration within the Cash App ecosystem, which offers features beyond payments, such as banking referrals, stock and bitcoin trading, and peer-to-peer transfers. This holistic approach drives frequent app usage, all while increasing the likelihood of Cash App Pay being selected at checkout and solidifying Cash App’s competitive position.
The success of Domino’s integration sets a precedent for Cash App Pay’s expansion into other restaurant chains and retailers. Industry observers anticipate that similar deals will follow with fast-casual chains, coffee shops, and chain restaurants, as merchants seek to capture the loyalty and spending power of digital-first consumers. Each new partnership not only broadens Cash App Pay’s reach but also further embeds Cash App into consumers’ daily routines.
Plus, Cash App Pay’s reliance on pre-funded balances and debit account links offers a more inclusive payment option for customers who prefer not to use credit cards or lack access to traditional credit products. By enabling payments directly from Cash App balances, funded via direct deposit or ACH transfers, this integration can serve underbanked customers and those seeking greater control over their spending. Such inclusivity aligns with broader financial empowerment trends that Cash App champions.
About Cash App
Cash App (formerly Square Cash) is a digital wallet for American consumers, developed and operated by Block, Inc. (formerly Square, Inc.), and launched in October 2013 to enable peer-to-peer money transfers and a broad range of financial services via a mobile app. As of 2024, the platform serves 57 million users and processes over $283 billion in annual inflows, making it one of the leading mobile payment services in the United States.
Through Cash App, users can send, receive, and save money, access a customizable debit card with FDIC-insured balances, and utilize features such as stock and bitcoin investing, personal loans, and free tax filing via Cash App Taxes. The service is free for standard peer-to-peer payments, but charges fees—3 percent for credit card transactions, 1.5 percent for instant transfers, and 2.75 percent on merchant payments—generating substantial revenue, with Block reporting $16.25 billion in Cash App revenue for fiscal year 2024.
About Domino’s Pizza®
Domino’s Pizza, Inc. is a leading American multinational pizza chain that began in December 1960 in Ypsilanti, Michigan, founded by brothers Jim and Tom Monaghan alongside Dominick DeVarti. Now headquartered in the Domino’s Farms office park in Ann Arbor Township, Michigan, and incorporated in Delaware, the company has evolved into a global powerhouse in the quick-service restaurant industry. Since launching its first franchise location in 1967, Domino’s has expanded to over 21,300 stores operating in more than 90 international markets. For the four quarters ending September 8, 2024, the company reported global retail sales totaling $18.9 billion, solidifying its place as one of the top players in the global fast-food chain.
Domino’s core product portfolio includes pizza, chicken wings, pasta, desserts, and submarine sandwiches, all offered through a predominantly franchised delivery and carryout model supported by its proprietary website and mobile app. Complementing its in-house digital ecosystem, in May 2025, the company launched a national partnership with DoorDash, enabling customers to order via the DoorDash marketplace while still utilizing Domino’s uniformed delivery drivers to enhance reach in suburban and rural markets. In fiscal year 2024, Domino’s reported revenue of $4.71 billion, operating income of $879 million, and net income of $584 million, supported by a workforce of approximately 10,700 employees across corporate and franchise operations.
Conclusion
The partnership between Cash App Pay and Domino’s reflects a clear shift in how consumers expect to pay for everyday purchases, especially food. By enabling mobile-first payment options within the Domino’s app, both companies are responding to changing consumer habits shaped by convenience, speed, and digital accessibility.
This integration benefits younger, tech-focused users while also opening the door for broader adoption of alternative payment tools in the restaurant industry. As the lines continue to blur between finance and food service, this collaboration signals what’s likely to become a wider trend: more retailers adopting app-based payments to stay relevant and competitive in a mobile-driven market.
In a significant move with the potential to reshape the space of in-person payments, Verifone and Stripe have announced a partnership to run Stripe services natively on Verifone payment devices – from handheld readers to multilane systems. Verifone-Stripe Partnership will provide Stripe customers with greater flexibility and choice for in-person payments.
Through this partnership, merchants will be able to support various customer interaction points, including self-service checkouts, tableside ordering, and traditional point-of-sale interactions. Features such as digital wallets, QR code payments, tipping, loyalty programs, and digital receipts are now more accessible, enhancing the overall customer experience.
Initially launching in the United States, the partnership plans to expand globally, providing Stripe customers access to Verifone’s enterprise-grade hardware and global payment capabilities. This broadens Verifone’s reach to modern, fast-growing, and adaptable businesses and offers Stripe users more flexibility and choice in deploying durable and high-performing in-person payment solutions.
Key Takeaways
Verifone and Stripe have partnered to offer Stripe services directly on Verifone’s hardware, giving merchants a ready-to-use solution that supports various in-person payment scenarios—from self-checkouts to tableside ordering.
The integration combines Verifone’s durable, EMV-certified devices with Stripe’s flexible APIs and SDKs, enabling businesses to create custom, branded POS experiences that are easier to deploy and scale.
Merchants can manage digital wallets, tipping, QR payments, receipts, and more—all from one platform. Centralized tools like the Stripe Dashboard simplify device management and help reduce downtime.
With Verifone in over 165 countries and Stripe in more than 40, the partnership enables businesses to standardize on a secure, unified commerce system across markets, offering localized support and global scalability.
Verifone-Stripe Partnership to Deliver Enterprise-Grade In-Person Payments
Consumers today no longer tolerate disjointed checkout processes – whether on a website, at a kiosk, or at a traditional register, they expect consistent branding, real-time data, and instant payment confirmation. Achieving that level of cohesion demands both enterprise-grade hardware and flexible, developer-friendly payment infrastructure.
To that end, on May 7, 2025, Verifone announced a strategic partnership with Stripe that brings Stripe services natively onto Verifone payment devices. The collaboration delivers a turnkey in-person payments solution for Stripe customers, combining Verifone’s proven hardware with Stripe’s modular Terminal APIs and Dashboard tools. Initially launching in the United States, the partnership is set to expand into additional markets in the months ahead.
Himanshu Patel, CEO of Verifone, highlighted that both Stripe and Verifone are frontrunners in the payments industry. He noted that their collaboration unites two innovation-centric brands that recognize significant opportunities to serve clients across a range of sectors, including retail, quick service restaurants, and hospitality.
Merchants integrating Stripe Terminal with Verifone devices can support advanced commerce use cases on a single platform, like self-service checkout kiosks, tableside ordering in restaurants, and durable countertop systems for high-volume lanes. Both companies support major digital wallets, on-reader QR code acceptance, printed or digital receipts, and interactive screens for tipping, loyalty enrollment, or customer signatures—all managed centrally through the Stripe Dashboard.
Stripe customers can choose from a broad portfolio of Verifone hardware, ranging from handheld readers with integrated printers to multilane countertop systems. Every device is EMV-certified, PCI-compliant, and built on Qualcomm chips for top-tier connectivity and performance. Cloud-based fulfillment and device management tools in the Stripe Dashboard enable remote configuration, software updates, and fleet monitoring, giving enterprises the scalability and reliability they demand.
Terminal’s API-first design means you can build a custom POS app or integrate one of hundreds of supported third-party platforms in weeks, not months. SDKs for iOS, Android, JavaScript, and React Native let developers craft branded checkout experiences directly on the Verifone reader itself, complete with customizable splash screens and prompts for loyalty or feedback. This flexibility accelerates time-to-market and reduces reliance on legacy POS software.
Verifone devices come with end-to-end or point-to-point encryption, ensuring card data is secure from swipe or tap through to tokenization. Qualcomm’s embedded security features help detect and mitigate fraud threats in real time, while cloud-managed device policies enforce compliance across geographies. Together, Verifone’s hardware engineering and Stripe’s tokenization offer a best-in-class security posture.
John Affaki, Business Lead for Payment Acceptance at Stripe, expressed enthusiasm about the partnership with Verifone, which will make Verifone’s devices available to Stripe Terminal users. He noted that this collaboration broadens the range of in-person payment scenarios Stripe can support by providing access to reliable, enterprise-grade devices in more locations.
Rajeev Yerukalapudi, EVP and Global Head of Strategy and Partnerships at Verifone, stated that this collaboration gives their customers greater flexibility in how they handle in-person payments. He added that, together, Stripe and Verifone are empowering merchants to create smarter, more personalized experiences at the point of sale. Verifone is proud to play a key role in this unified commerce solution.
Understanding Unified Commerce
By definition, unified commerce is the strategy that seamlessly connects back-end systems with customer-facing channels, centralizing payments, inventory, loyalty, and analytics on a single platform. It transcends traditional omnichannel approaches by sharing real-time data across all touchpoints to deliver consistent, personalized experiences.
That centralized architecture lets businesses track a customer’s journey from online browsing to in-store pickup, upsell complementary items at the register, or alert staff on the floor when a VIP walks in, all while maintaining a unified ledger of every interaction and payment.
How Does the Partnership Support Global Growth and Operational Efficiency?
According to the 2025 Unified Commerce Benchmark, the top tier of retailers—Apple, Best Buy, Nike, and others—achieved 31% lower fulfillment costs and 24% higher customer satisfaction by mastering unified experiences across channels. For fast-growing businesses, combining Verifone’s secure hardware with Stripe’s flexible API suite creates a powerful toolkit to drive those same efficiency gains and customer loyalty.
While the partnership kicks off in the U.S., both companies have made it clear that a global roll-out is next. Verifone’s presence in 165+ countries and Stripe’s operations in over 40 markets mean enterprises can standardize on a single payments solution worldwide. As new markets come online, merchants will benefit from enterprise-grade scalability, localized compliance, and multilingual support—all managed through a unified console.
When evaluating a unified commerce deployment, merchants should audit existing POS and inventory systems, plan for integration with Stripe Terminal SDKs, and leverage the combined support teams at Verifone and Stripe to streamline onboarding. Real-time reporting and remote device management help minimize downtime and accelerate ROI, making it easier to scale from one pilot site to hundreds of locations.
About Stripe
Stripe, Inc. is a multinational fintech and software-as-a-service (SaaS) company with dual headquarters in South San Francisco, California, and Dublin, Ireland. Launched in 2010 by Irish siblings Patrick and John Collison, Stripe began with a mission to simplify online payments through developer-centric APIs tailored for e-commerce platforms and mobile apps. Since then, it has evolved into one of the world’s most valuable privately held financial technology companies, handling over $1.4 trillion in payment volume in 2024 and reaching an estimated valuation of $91 billion.
Today, Stripe’s early mission to expand internet commerce globally has evolved into providing a robust financial infrastructure platform that underpins businesses of all sizes, from emerging startups to global enterprises. At the core of Stripe’s platform is a suite of products—including Billing, Payments, Sigma, Connect, Radar, Atlas, Issuing, and Terminal—that enable developers to integrate payment processing, fraud detection, subscription management, and even banking services into their applications with minimal code.
The platform supports transactions in over 135 currencies and payment methods, handles more than 500 million API requests per day (peaking at around 13,000 requests per second), and maintains a historical uptime of 99.999%. With such scalability, Stripe processes hundreds of billions of dollars each year for businesses around the world and estimates that approximately 90% of U.S. adults have purchased from merchants using its services. Plus, products such as Atlas facilitate global company incorporation, Radar offers machine-learning-powered fraud prevention, and Stripe Treasury enables embedded banking services, underscoring Stripe’s evolution into a comprehensive financial toolkit.
About Verifone
Verifone, Inc. is a global technology company based in New York City that specializes in electronic payment solutions and point-of-sale services. Established in 1981 by William “Bill” Melton in Hawaii, Verifone designs and distributes self-service, merchant-operated payment systems used across diverse sectors such as retail, banking, fuel, hospitality, healthcare, and government.
At the core of Verifone’s offering is a broad suite of hardware and software solutions, including mobile and countertop payment terminals, cloud-based commerce platforms and self-service kiosks; these devices run on the proprietary Verifone OS and support multiple payment methods—such as contactless/NFC, chip-and-PIN, electronic benefit transfer, and mobile wallets—while leveraging built-in security and encryption to process billions of transactions annually. In April 2018, private equity firm Francisco Partners acquired Verifone for $3.4 billion, taking it private and fueling further investment into research, development, and global expansion.
Today, Verifone employs around 5,000 people worldwide and maintains an office presence in over 45 countries, serving merchants across more than 150 countries.
Conclusion
The partnership between Verifone and Stripe represents a practical step toward streamlining in-person payment experiences through unified commerce. By combining Verifone’s proven payment hardware with Stripe’s developer-friendly APIs and global infrastructure, merchants gain access to a versatile solution that supports a wide range of customer interactions—whether at the counter, table, or kiosk.
This collaboration not only simplifies how businesses manage payments across geographies but also positions them to meet rising expectations for speed, convenience, and consistency at checkout. With initial deployment in the U.S. and plans for international expansion, the Verifone–Stripe integration offers a scalable foundation for modern retail and hospitality environments, enabling merchants to build reliable and flexible point-of-sale systems backed by centralized management, robust security, and real-time analytics.
AI is already embedded in payment systems – from credit cards and mobile wallets to backend risk engines – often without customers realizing it. Experts note that artificial intelligence (AI) is transforming business, and “cross-border payments is no exception,” with the technology now having a direct impact on many payment providers.
Major players are pouring resources into enhancing AI in payment processing. Visa has invested over $3.3 billion in AI and data infrastructure, and in 2024, it rolled out new AI-powered fraud-risk tools for instant transfers and online payments. Rapid advances in machine learning and generative AI mean the pace of innovation keeps accelerating. New AI models can quickly learn from transaction data and even generate insights on the fly, so the payment industry of 2025–2030 will look very different than today’s.
AI in Payment Processing: What’s The Scene Today?
Fraud Detection and Prevention
Today, one of the biggest uses of AI in payments is fighting fraud. Machine learning models continuously scan transaction data for anomalies. For instance, in 2024, Mastercard upgraded its “Decision Intelligence” platform with generative-AI enhancements, the system reviews key data points on each transaction in real time to predict whether it’s genuine.
Stripe likewise introduced an AI-based fraud tool that lets merchants write custom fraud rules in plain language prompts. Even interbank networks are adopting AI – in late 2024, SWIFT launched an AI anomaly-detection service to help banks flag illicit or fraudulent transactions. Overall, industry leaders say “deep learning algorithms” will become more sophisticated at analyzing payment patterns and spotting risks instantly.
In practice, this means every swipe or tap can be checked by hundreds of predictive models in milliseconds. Many payment systems also use biometric AI (like Apple’s Face ID in Apple Pay) as an extra fraud check, as predictive analytics can cross-reference unique user traits to verify identity. These “machine learning fraud detection” systems have drastically reduced chargebacks and losses for businesses, catching subtle fraud schemes that older rule-based methods would miss.
Transaction Speed and Automation
AI is also streamlining and automating routine processing tasks. For example, Stripe’s “Optimized Checkout Suite” uses AI to automatically select the best payment methods for each customer, improving approval rates and cutting declines.
These forms of payment automation mean fewer manual steps and faster settlement – a single transaction can now skip numerous time-consuming checks. Behind the scenes, many banks employ Robotic Process Automation (RPA) to handle high volumes of tasks without extra staff. For example, AI scripts automatically reconcile accounts, process invoices, or verify beneficiary details. By offloading these repetitive jobs, processors speed up the clearing and settlement cycle. In effect, AI can match an invoice to payment in seconds and trigger receipts or notifications automatically. The net result is that payments happen faster and with less human intervention than ever before.
Predictive Analytics for Consumer Behavior
Another area where AI is active is data analytics. By aggregating transaction data across millions of users, payment platforms can predict customer behavior and tailor services. For example, analysis of spending trends helps merchants forecast demand and adjust inventory or marketing. Banks and card companies use machine learning to segment users and anticipate who might churn or who will likely respond to a new offer.
AI algorithms for fraud, such as predictive analytics payments, further enhance machine learning payment security, underscoring that the same pattern-analysis powers both security and personalization.
In practice, some fintechs use AI to send personalized coupons or budgeting advice based on how people usually spend. Others adjust credit limits or rewards in real time when they predict a customer’s needs. Major vendors now pitch these capabilities with AI-based sales forecasts and customer insights as part of their merchant services.
These tools – essentially machine learning in merchant services – help businesses use payment data to drive decisions on pricing, marketing, and product offers.
How AI Will Reshape Payment Processing by 2030?
1. Real-Time Payment Approvals
By 2030, AI is expected to make approval decisions nearly instantaneous. The infrastructure for real-time payments is already expanding. For example, the U.S. Federal Reserve is migrating to ISO 20022 messaging and rolling out FedNow for instant transfers.
In this environment, AI can work alongside these new rails to instantaneously verify identity and credit. For instance, an AI system might immediately cross-check a payer’s habits, geolocation, device ID, and transaction history to green-light a payment with zero delay. We may see proactive payments – AI models could detect routine bills and automatically schedule them when funds are available, or suggest transfers before a user even logs in. Global payments will also become smarter, as networks become interoperable, AI could enable instant currency conversions and cross-border credits.
Visa points out that the FedNow launch in 2025 will “enable instant payments” in the U.S.; layering AI on top means those payments will be approved and settled in milliseconds, as checks for fraud, compliance, and creditworthiness all happen in parallel. This “real-time” paradigm could reduce or eliminate the hold times and batch processing windows that still exist today, making payment approvals as fast as a single smartphone tap.
2. Fully Autonomous Payment Systems
Another big shift will be cashier-less, AI-driven checkout. Today’s “self-checkout” kiosks still rely on scanners or cashiers for help, but the next step is truly frictionless retail. Pioneers like Amazon have experimented with so-called “just walk out” stores, where cameras, sensors, and AI were supposed to track items as customers leave, billing them automatically. In reality, even Amazon quietly needed thousands of human monitors to label what shoppers picked (some reports say up to 70% of transactions were reviewed by people).
By 2030, these issues may be resolved. Supermarkets and convenience stores could have AI checkout systems that recognize each item without scanning, or smart carts that automatically track purchases as they’re added. Outside retail, kiosks at airports, parking garages, and tolls could operate without attendants – payment and ticketing handled entirely by AI cameras or vehicle sensors. Even peer-to-peer payments might go autonomous – imagine an “AI checkout” that can pay you via Venmo by analyzing your calendar or receipts (triggered by an AI assistant on your phone).
3. Smart Contract-Based Transactions
Looking further out, blockchain smart contracts will likely play a role, especially for B2B and IoT payments. Smart contracts are self-executing agreements on a blockchain that transfer funds when conditions are met. IBM notes that smart contracts eliminate paperwork and intermediaries, allowing funds to be released immediately once terms are satisfied.
For payments, this could mean automatic payouts on delivery, subscriptions that renew or cancel themselves, or insurance claims that pay out when a trigger (like a car accident report) is verified. AI will enhance smart contracts by feeding them real-world data. For example, an AI-driven IoT sensor network could confirm that a shipment arrived safely, then instantly trigger payment via a blockchain contract. In trading or escrow, AI could analyze market data and execute trades or transfers on behalf of users without manual intervention.
These “smart transactions” promise faster settlement and greater trust, since IBM points out that they bring speed, accuracy, and transparency by design. By 2030, as blockchain matures in finance, AI-powered oracles and automated contract agents may handle a large volume of routine B2B and supply-chain payments with zero human touch.
Opportunities and Risks for Businesses
Benefits: Efficiency, Accuracy, Cost Savings
For businesses, the upside of AI in payments is clear. Automated systems reduce human error and speed everything up. SmartDev notes that Robotic Process Automation (RPA) – a form of AI – lets banks handle high-volume payment tasks without adding staff. A study even estimates that firms adopting AI payment solutions can improve their cost-income ratios by 5–15%. In practice, this means fewer manual reconciliations, faster invoice matching, and more accurate reporting.
Mistakes that used to arise from manual entry (like duplicate charges or misrouted transfers) can be caught or prevented by AI’s consistency. Modern providers advertise AI-based payment processing solutions that automatically flag anomalies, auto-classify expenses, or reconcile accounts at the end of the day. These tools can cut labor costs (fewer people needed to approve or settle payments) and reduce losses.
In addition, machine learning can optimize cash flow, AI algorithms forecast when payments will clear, enabling companies to manage liquidity more tightly. In short, AI brings higher accuracy and lower overhead. Major vendors like Visa, Mastercard, PayPal, and new fintechs (Square, Adyen, etc.) all highlight efficiency gains in their AI offerings. As one example, Stripe and PayPal routinely cite improvements in approval rates and fraud loss reduction from their AI tools. Many businesses that have adopted AI payment processing report smoother operations, quicker customer onboarding (through automated KYC), and the ability to scale transaction volume without scaling staff.
Challenges: Trust, Bias, System Errors, and Security
AI in payments is not without pitfalls. A top concern is trust; many AI systems (especially deep learning) are “black boxes,” so it’s hard to know exactly why a transaction was declined or flagged. Companies and regulators are still grappling with how to audit those decisions. Bias is another issue; if an AI model is trained on skewed data, it could unfairly block certain customers or merchant segments. For example, AI credit-scoring tools have in the past reflected existing biases against minorities or low-income applicants. Financial firms must also worry about system errors or hallucinations from AI.
Studies of generative AI in finance warn that models can confidently “hallucinate” false information if they encounter unfamiliar input. In payments, a hallucination could mean an AI model misidentifies a legitimate charge as fraud, causing a wrongful blockage and customer frustration. It could even fabricate bogus alert messages. Security is another risk; AI systems require vast amounts of transaction data, raising privacy concerns. Industry experts note that implementing AI in finance demands robust data protection – a single breach could expose sensitive payment details or personal info.
Plus, AI software itself could be targeted by cyberattacks or manipulation. Finally, rapid advances (especially generative AI in finance) outpace regulation. There are few clear rules yet about liability when an AI payment tool makes a mistake. Visa highlights this tension, stating “Using AI responsibly is critical,” and industry leaders stress the need for strong governance and oversight as AI adoption grows. In other words, businesses must be aware that generative AI in finance can produce impressive results, but it also introduces new vulnerabilities (bias, fake content, data leaks) that require vigilance.
How to Future-Proof Your Business Now
Choose tech-forward payment providers
To stay ahead, businesses should partner with payment providers known for innovation. Many leaders in the space are already investing heavily in AI. For example, Stripe, PayPal, and Mastercard are frequently cited as industry trendsetters—they have publicly discussed AI in multiple areas of payment services.
Other big names like Visa, Amazon, and Revolut also tout AI in payment processing features for merchants. When choosing a payment processor or merchant services platform, look for one that offers AI tools out of the box – automated fraud rules, smart routing, AI-driven analytics dashboards, etc. Providers like Stripe and Adyen publish technical documentation on their machine learning fraud filters (e.g,. Stripe Radar).
Even traditional banks (like JPMorgan, Citi) are rolling out AI fraud tools for their business clients. By using the latest payment systems, businesses can benefit from the collective data and models these platforms develop. In short, working with a tech-forward vendor gives you AI “for free” – you gain efficiency and insight without having to build complex models yourself.
Start integrating AI-compatible tools
Beyond selecting providers, companies should modernize their systems to leverage AI. This means adopting cloud or API-based tools and ensuring data is clean and accessible. Businesses can integrate AI in small steps. For example, use an AI-based analytics app to review spending patterns, or implement chatbots that use natural language models to assist customers with payment questions.
Many cloud services (AWS, Azure, Google Cloud) now offer AI APIs for anomaly detection, forecasting, and document processing that can be hooked into existing accounting or payment platforms. For merchant services, look for POS or ERP systems with built-in AI modules. The sooner your team gets hands-on with these capabilities, the smoother the transition will be.
Training finance staff or developers on AI/ML concepts is also wise, so your people can intelligently use and question the technology. Remember, AI is a tool, not magic. Combining human judgment with AI (a “human-in-the-loop” approach) is key. Start by using AI for non-critical tasks (like categorizing expenses or drafting invoice reminders) and expand from there as you gain confidence.
Stay informed about regulatory shifts
Finally, keep a close eye on the legal landscape. Governments and regulators worldwide are taking note of AI in finance. For example, the EU’s upcoming AI Act will impose rules on high-risk AI systems – payments fall under several compliance categories (fraud prevention, credit decisions, etc.). In the U.S., regulators like the CFPB and SEC are studying how AI models affect lending and investment advice.
New rules may soon require explainability in algorithms or limits on certain practices. Businesses should follow these developments, maybe via industry groups or legal counsel, to ensure compliance. Adjusting contracts and processes now (e.g., setting aside manual review for critical decisions) will save headaches later. Staying informed also means watching technology trends – if a major player (like Visa or Mastercard) announces a new AI standard or guideline, it can become an industry benchmark.
Final Thoughts: Embrace AI, But Stay Vigilant
AI-driven tools are poised to revolutionize payment processing in the coming years, but businesses should embrace them with eyes wide open. The potential benefits – near-instant approvals, automated reconciliations, smarter fraud protection, and personalized services – are enormous. But every new capability brings new responsibilities. Companies will still need to monitor AI systems, audit their decisions, and intervene when needed. Visa’s leadership highlights this balance – the next generation of AI can make payments “safer, smarter, and more seamless,” but it depends on using the technology responsibly.
In practice, that means combining AI with solid controls by doing regular model testing, human oversight of edge cases, and up-to-date cybersecurity. Those who prepare today by investing in AI readiness (choosing advanced providers, training staff, and planning for regulations) will be best positioned to benefit from the AI-driven future of payments. Keep in mind that AI is a powerful tool, but not a cure-all. Maintain your core business processes and customer focus, and let AI augment – not replace – good judgment.
Frequently Asked Questions
Is AI used in credit card processing today?
Yes. AI helps detect fraud, adjust credit limits, and block suspicious payments. Companies like Mastercard, Visa, and Stripe use it behind the scenes to verify transactions in real time.
Will AI replace payment processors?
No. AI will automate tasks but not replace processors. Banks and fintechs will still manage networks, support, and compliance—AI will assist, not take over.
How secure is AI when handling payment data?
AI can be secure if paired with encryption and tokenization. Top providers use these tools to protect data, but businesses must also monitor systems and use trusted vendors to avoid risks.
Embedding an infographic of processing fees highlights just how critical it is to understand the true cost of accepting credit cards. In practice, fees vary widely—U.S. and Canadian merchants typically pay between 2.3% and 2.9% per sale, with 2024 averages ranging from 1.15% to 3.15% depending on the card and transaction type. With such thin profit margins, it’s not surprising that 87% of consumers feel “nickel-and-dimed” by card fees. Yet, despite this data, persistent credit card processing myths—like “all processors charge the same” or “switching is impossible”—continue to mislead business owners and cost them tens of thousands over time.
These credit card processing myths thrive because the payments industry is complex and often opaque. With dozens of fee categories—interchange, assessment, network, and more—business owners can easily miss hidden costs. Add in fine print, aggressive sales tactics, and confusing pricing models, and misinformation becomes entrenched. The real danger is financial: believing these myths can lock you into overpriced services. Industry research shows merchants can often cut processing costs by 20–25% simply by negotiating or switching to transparent pricing. So, busting myths isn’t just about being informed—it directly protects your bottom line.
Credit Card Processing Myths: Top 5 Busted
Myth #1: All Processors Charge the Same Fees
It’s tempting to think every merchant service provider offers the same rates, but that’s false. In reality, rates and fees vary dramatically between providers and depend on your business type, volume, and sales methods. Behind the scenes, card brands set “interchange” fees that differ by card type (credit vs. debit), brand (Visa, MC, Amex, etc.), and processing method (chip, swipe, online, keyed-in). High-reward cards or certain industries can incur higher interchange fees. Providers then add their markup.
For example, global data show U.S. interchange fees exceed 2% per transaction on average, whereas in Europe, caps are around 0.3%. A U.S. merchant paying a flat 2.9% could actually have an underlying cost of only ~1.5% for many transactions, meaning the processor pockets the difference. The bottom line is that two companies can quote very different rates even for identical sales volume.
Many processors use opaque tiered pricing or flat-rate bundles. For example, flat-rate processors set their fees at the high end of the scale to cover variability, so in many cases, merchants pay more than is necessary. Tiered pricing, which involves bundling transactions into “qualified” or “non-qualified” tiers, can further obscure actual costs. On a $1,000 sale at 2.9% flat, a merchant pays $29, even though the true interchange might be about $15. Over hundreds of transactions, the extra margin adds up. Conversely, interchange-plus pricing charges the exact network rate plus a fixed markup, giving clear insight.
The “hidden fees myth” is a subset of this misconception – many don’t realize extra fees exist beyond the headline rate. For example, processors may tack on monthly statement fees, PCI compliance fees, gateway fees, or per-transaction add-ons. Statement analysis can reveal hidden charges behind their statements. Merchants are warned to watch out for transaction fees, plus an extra fee of up to 50 cents, and other incidentals like PCI or setup fees. Don’t assume your rate is all-inclusive – ask for a detailed breakdown.
Because of this variance, shopping around really can save you money. Studies report that U.S. and Canadian merchants face the highest fees worldwide due to unregulated interchange. Even within the U.S., one provider’s flat rate may be worse than another’s tiered rate. Comparing your current merchant statement against quotes from multiple providers – a “merchant statement comparison” – is key. This analysis is a powerful tool to spot excess costs and find better deals. Don’t fall for the “everyone charges the same” myth – insist on pricing transparency, and interchange-plus is best to ensure you only pay for what you use.
Myth #2: Flat-Rate Pricing Is Always Best
Many small businesses default to flat-rate processors like Stripe, Square, or PayPal, believing the simplicity justifies the cost. But “simple” doesn’t always mean “cheapest.” Flat-rate models bundle all transaction costs into a single percentage, often around 2.6–2.9% plus a small fee. While this is convenient, it often becomes more expensive as a business scales or handles high-ticket sales. In a flat model, the processor essentially overcharges on low-cost transactions to cover potential high-cost ones.
Flat-rate pricing bundles various fees into an easy-to-understand rate, but this rate is set at the high end to account for all scenarios. As a result, a merchant with mostly small or low-risk transactions ends up subsidizing the processor’s cushion for risk. Paying 2.9% flat when many transactions only incur around 1.5% interchange means you’re covering the processor’s margin — for example, paying $29 on a $1,000 sale instead of the ~$15 actual cost. Over time, that extra margin multiplies into hundreds or even thousands of dollars a month.
For very small businesses (under $5,000/month) or those with low average tickets like coffee shops, flat rates can feel ideal — they offer predictability, no hidden fees, and no monthly minimums. Flat rates eliminate uncertainty, making budgeting easier, and Square’s pay-as-you-go model suits gig or seasonal sellers. However, even these businesses should check their pricing periodically, as growing volume may result in additional fees from flat-rate providers. An alternative to flat pricing is interchange-plus or membership pricing, where you pay the actual interchange rate plus a fixed markup.
This model is more transparent and typically more cost-effective at scale. While flat rates tend to be more expensive on a per-transaction basis, interchange-plus keeps fees aligned with your actual costs. If your current processor doesn’t offer interchange-plus, it may be worth switching to one that does. The small complexity of varying rates can pay off significantly, sometimes reducing fees by 25% or more.
Ultimately, the best pricing depends on your business model. Only you can determine your volume, average ticket size, and card mix. However, don’t let the myth that “flat rate is best” prevent you from evaluating your options. Comparing your annual fees under flat-rate versus transparent models can reveal hidden overpayments. Even if a flat-rate contract seems easy and predictable, it may be costing you more in the long run. Flat pricing is a convenience, not a rule — and as your business grows, other models like tiered, interchange-plus, or membership pricing might serve you better.
Myth #3: You Can’t Pass Fees to Customers
Many merchants believe it’s illegal or impossible to make customers share credit card fees, but in reality, U.S. law and card network rules allow surcharging, with caveats. The blanket statement “you can’t pass fees” is a myth. Since 2013, card networks have permitted U.S. merchants to add a surcharge on credit card transactions, capped at the merchant’s actual cost. Visa and MasterCard, for example, limit it to either your discount rate or 4%, whichever is lower. Only a few states ban credit-card surcharging entirely.
As of 2025, only Connecticut, Maine, Massachusetts, and California completely prohibit card surcharges, while others, like Colorado, impose specific limits such as a 2% cap. Visa’s official guidance notes that although about ten states have some restrictions, including nuances in New York and Texas, merchants may still apply surcharges in states where it is allowed. Similarly, Bloomberg Law confirms that most states permit surcharging, with a handful imposing bans or limits. The bottom line is that in the U.S., you can legally pass on credit card fees in most locations, up to a 4% cap, as long as you comply with applicable disclosure and state-specific regulations.
If you decide to implement surcharging, it’s important to treat it as a legitimate payment strategy rather than a hidden fee. Card network rules require that merchants disclose the surcharge percentage or amount both at the point of sale and on the receipt. You must not exceed your actual cost, and in no case may the surcharge exceed 4%.
Visa states that surcharges may not surpass the merchant discount rate, and MasterCard sets similar limits, capping the fee at the lesser of the merchant’s rate or the network’s maximum allowed. Furthermore, surcharging must be applied uniformly across all credit card brands—you cannot selectively apply it to certain issuers or networks. In states that prohibit surcharges, you can consider alternative strategies like a cash discount or a convenience fee model, though different rules apply in those cases.
Passing on credit card fees can significantly reduce merchant costs. A modest 2–3% surcharge on credit sales can effectively offset transaction fees. Research indicates that many consumers are willing to pay a small fee rather than abandon a purchase. For those hesitant about direct surcharging, another option is to raise prices slightly to account for processing costs—this achieves the same financial outcome without labeling the cost as a “fee.” Transparency is key: most resistance to surcharging stems from fear of customer backlash, but with clear signage and open communication, most customers accept reasonable convenience fees. Major retailers and airlines already use similar practices, often embedding the cost into posted “cash” prices.
One common myth to avoid is confusing debit card rules with credit card rules. In the U.S., surcharging is allowed for credit cards under specific conditions, but surcharging PIN-based debit or prepaid cards is prohibited. Some states, like Texas, allow a “convenience fee” structure when alternative payment methods are available. While it’s essential to check the specific laws in your state, merchants should understand that they generally have options to mitigate credit card processing costs.
Myth #4: Long-Term Contracts Are Unavoidable
Another pervasive myth is that you must accept a multi-year processing contract to get good rates, but in fact, long-term contracts are often optional and usually a sign to shop elsewhere. Especially for small or online businesses, flexible terms are now the norm, not the exception. Today’s popular processors like Stripe, Square, and PayPal operate on a month-to-month billing with no fixed term.
Even many traditional merchant services are moving in this direction. Industry guides consistently advise small businesses to avoid companies that lock them into annual contracts and instead choose providers offering month-to-month terms or no early termination fees. Payment experts echo this sentiment, stating that honest processors provide month-to-month agreements and that merchants shouldn’t have to pay to leave if they’re dissatisfied.
Many legacy and bank-owned processors still lock merchants into three- to five-year contracts with steep cancellation penalties. These terms are designed to discourage merchants from switching providers and often generate significant profit through early termination fees. However, such practices are increasingly unnecessary. The rise of modern fintech platforms and cloud-based point-of-sale systems has reduced the complexity of switching providers, allowing the market to shift toward price competition instead of contractual entrapment. If a salesperson insists on a long-term agreement, it’s a red flag.
There’s no harm in holding providers accountable. You should feel empowered to negotiate and ask for the removal or reduction of any locked-in term. Many providers are willing to offer shorter agreements or waive cancellation fees to win your business. It’s also important to watch out for auto-renewal clauses. Even if a contract appears to be month-to-month, some agreements include automatic rollbacks to annual terms unless canceled in time. Industry experts and consultants alike recommend carefully reviewing contracts for these hidden traps.
Long contracts often hide additional costs, such as equipment leases. If you’re required to lease a payment terminal on a multi-year plan, you could end up paying significantly more over time. For example, a four-year lease at $25 per month totals $1,200, while the same terminal might cost only around $300 if purchased outright, resulting in a $900 overpayment. A smarter option is to buy your equipment or use bring-your-own-device (BYOD) solutions when possible. While leases may offer short-term convenience, they are rarely cost-effective in the long run.
Myth #5: Changing Providers Is a Hassle
Fear of hassle is one reason many merchants stay stuck in a bad processing deal, but in truth, switching processors has become much easier thanks to plug-and-play gateways and cooperative account setup practices. It’s usually a matter of a few straightforward steps, not an ordeal. Changing your credit card processor can be surprisingly painless today, as modern providers often streamline onboarding to minimize downtime. For example, some processors allow you to run your old and new systems in parallel, offering features like secure customer data migration and zero payment disruptions.
This approach means you can test a new processor while still using the old one, and if the new solution doesn’t meet expectations, switching back involves minimal effort. Many businesses even operate both systems temporarily, comparing statements to ensure real savings.
The steps involved in switching are simple. Typically, you need to choose a new processor based on quotes or recommendations, complete the account application, install or configure their gateway or terminals, and begin accepting payments. If your existing POS and gateway already support the new processor, no new hardware is required. If new devices are needed, many providers ship them pre-configured. Importantly, you don’t have to cancel your current account immediately—you can overlap services to ensure a smooth transition.
There are a few real barriers to switching. The biggest hurdle is often finding your existing statements or negotiating out of a contract, but even early termination fees can sometimes be waived or reimbursed. Some processors offer to buy out your old contract as an incentive to switch. Additionally, federal and state laws may allow you to exit a contract without penalty under certain circumstances, such as when a provider increases fees. In practice, the necessary paperwork is often handled by the new processor, further easing the transition.
Support and speed are also on your side. Many modern processors provide 24/7 support during the transition period, and account approvals typically take only a few business days, or even minutes for online merchants. There’s also no need for extensive staff retraining, since card transactions function the same regardless of the backend processor.
Real-world experience confirms that switching isn’t complex. Payment advisors often break it down into just three steps: choose your POS, select a gateway, and pick a processor. With no-contract accounts like those offered by Stripe or Square, there’s virtually no risk—if it doesn’t work out, you can switch back with minimal hassle. And if you run into any issues, support forums and merchant services blogs are filled with helpful advice and community-driven solutions.
What’s True and How to Save Credit Card Processing Cost?
With myths debunked, let’s focus on reality and actionable strategies. Here are key truths and tactics to lower your payment costs:
What to Look for in a Modern Credit Card Processor?
Transparent pricing: Prefer interchange-plus or membership models over tiered or opaque rates. Ensure you get a clear schedule of interchange costs plus any fixed markups. This “interchange rate clarity” means you pay exactly the network’s fee plus a small margin – no mystery padding.
No hidden fees: Check for zero or low setup fees, statement fees, monthly minimums, PCI compliance fees, or gateway fees. Avoid processors that tack on random surcharges (e.g., “network access” or “annual account maintenance”). Some providers advertise “no hidden fees” as a selling point; verify it in the contract.
Equipment choices: Choose a processor that lets you purchase devices outright or use BYOD (mobile readers). Avoid automatic lease agreements. If you need terminals, compare the costs of buying vs. leasing. (As noted, leasing a $300 device at $25/mo for 4 years can cost $1,200.) Buying eliminates monthly rental charges.
Fast funding: Look for next-day or rapid funding options to beat the “funding delays myth.” Many modern processors offer funding in 24 hours or faster. This improves cash flow. One payments firm notes, “Next business day funding can significantly improve your business’s liquidity.”
Built-in PCI compliance: PCI compliance is mandatory, not optional, for any merchant taking cards. A good processor will include simplified PCI tools (like free scanning or integrated validation). Don’t pick one that nickel-and-dimes you on PCI fees – your focus should be on compliance, not extra charges.
Strong support and stability: Check for 24/7 customer service, fraud protection tools, and a track record with businesses like yours. Read reviews on how quickly they resolve issues. A “modern” processor should also stay up-to-date (support EMV chips, contactless, e-commerce tokens, etc.)
Contract flexibility: Ideally, go month-to-month or at least short-term. If you must sign a term, make sure you can exit with minimal penalty. Transparent, reputable processors will spell out contract details.
Global reach (if needed): If you sell internationally, ensure the processor has reasonable cross-border rates and supports multiple currencies. Some myths focus only on domestic rules, but global businesses should verify international interchange costs.
Reputation: Finally, choose well-known providers or those recommended by peers in your industry. Check for BBB accreditation or industry certifications. A processor’s longevity and financial stability matter – you don’t want another surprise when they get acquired.
Questions to Ask Before Signing Any Contract
You must ask some important questions upfront (and demand straight answers) if you want to avoid nasty surprises later. Honest providers will be transparent or will clarify anything hidden. If a rep dodges, take it as a sign. Here are some important ones:
Pricing model: “Is your pricing flat rate, tiered, or interchange-plus? Can you show me a sample statement so I can see the actual breakdown of fees?”
Effective rate: “What will my total effective rate be based on my anticipated sales mix? For example, if I process $X in Visa/Mastercard and $Y in rewards cards monthly, what will I pay?”
All-in cost: “What one-time and recurring fees apply? Are there PCI, statement, gateway, termination, or minimum fees? If so, what are they?”
Contracts: “Is there a minimum contract term? Are there auto-renewal clauses? What is the cancellation (ET) fee, and under what conditions can I cancel penalty-free?”
Termination: “Do you offer any support for early termination fees (like a buyout or covering the cost)?” (Some providers, like Helcim, will directly buy out your old contract or credit your account.)
Funding and settlement: “How quickly are funds deposited into my account? Do you hold any reserves or have rolling reserve requirements?”
Equipment: “Is my card reader/terminal compatible? If I need new hardware, do I lease it or buy it? What are the costs for each option?”
PCI compliance: “Do you provide PCI compliance assistance or are there fees for it?” (Ask for proof they are themselves PCI-compliant, and whether they include quarterly scanning.)
Surcharging and discounts: “Do you support cash discount or surcharge programs? If I want to surcharge or set a convenience fee, will your system handle the requirements?”
Transaction handling: “Do you offer EMV chip and contactless processing? What about recurring billing, invoicing, or e-commerce gateway?”
Hidden costs: “How do you handle things like chargeback fees, retrieval fees, or international card fees? Are those fixed or variable?”
Miscellaneous: “Are any fees subject to change with notice? How do you notify me of rate increases or new fees?”
Smart Fee-Reduction Tactics That Work
Implementing these tactics can shave percentage points off your processing costs:
Pass on costs legally: If permitted, implement a small credit-card surcharge (up to your processor cost, e.g., 2–3%) or a cash discount program. As Homebase suggests, “charging a convenience fee, raising your prices slightly, or setting a minimum purchase amount” are legitimate ways to offset processing costs. Just ensure compliance with state laws and network rules.
Encourage cheaper payment methods: Promote debit (especially PIN-debit) or ACH payments for costlier recurring charges. Debit transactions often incur a flat fee rather than a high percentage, saving you money. Offer a small discount for cash/check payments if feasible.
Negotiate volume pricing: If your sales grow significantly, renegotiate. Processors may offer tiered discounts or remove minimums once you hit new volume levels. Even without growth, you can use competitive quotes: show your statement to another provider and have them offer a better deal as leverage.
Avoid card-not-present fees: Encourage customers to pay in person with chip cards rather than keyed-entry or manual entry online. Card-not-present transactions (phone/internet) carry higher rates. If you do e-commerce, use AVS/CVV verification to qualify for lower CNP rates.
Use level 2/3 data for commercial cards: If you bill B2B or government, send Level 2 (for CMCC) or Level 3 (for commercial/interchange-plus) data to lower interchange. Many gateways support this. It can drop fees from ~3% to ~1–1.5% on corporate cards.
Watch for hidden fee traps: Regularly audit your statements for any mysterious charges (PCI, batch fees, statement fees, etc.). Ask your provider to waive any unjustified charges. For example, Helcim warns that undisclosed “PCI non-compliance fees” should not be buried as higher transaction costs.
Utilize technology: Some fintech solutions offer “free” processing by embedding fees in other services (cash-back programs, gift card systems, etc.). Others bill a flat monthly fee. Evaluate those if you qualify. But always do the math (free isn’t free!).
Combine providers: As Helcim recommends, it’s sometimes smartest to open a second account temporarily. Run high-fee transactions through a cheap processor (like ACH/remote debit for large bills) and keep credit cards for others. This splits volume, forcing competition. Many small businesses use one account for regular sales and another for high-ticket or e-commerce sales, balancing cost vs. convenience.
Negotiate contracts: Finally, remember that contracts are negotiable. If terms look bad (long lock-in, high fees), try a larger company or a broker. We noted you often don’t have to accept the first offered deal.
Final Thoughts: Don’t Let Misinformation Cost You
Credit card processing doesn’t have to be confusing or costly. Many common myths—like “everyone charges the same,” “flat rates are best,” or “you can’t pass fees to customers”—simply aren’t true. Long-term contracts aren’t mandatory, and switching providers is easier than ever. Instead of accepting outdated assumptions, merchants should focus on facts: compare providers, demand transparency, and scrutinize contract terms. Tools like statement analyzers and resources from modern processors can help you uncover hidden fees and make better choices.
By using agile, transparent processors offering features like interchange-plus pricing and free contract buyouts, small businesses can often save up to 25% on processing costs. That’s real money back into your business—enough to reinvest in staff, marketing, or operations. Staying informed about industry trends, legal changes, and pricing models can prevent overpayment and lead to smarter decisions. In short, be an informed buyer, not a passive payer—your bottom line depends on it.
Frequently Asked Questions
How do I know if my payment processor is overcharging me?
Check your monthly statement and calculate your effective rate. If it’s well above 1–4% plus $0.30–0.50 per transaction, you may be overpaying. Comparing quotes or doing a merchant statement analysis can help spot hidden fees.
Are short-term or month-to-month payment contracts available?
Yes, many providers like Stripe and Square offer month-to-month terms with no cancellation fees. You don’t need to commit to a long contract unless there’s a clear benefit.
Is it hard to switch payment processors?
Switching is easier than most expect. You can run the new system alongside your current one, and many providers assist with setup, migration, and even cover termination fees from your old processor.
