Card Payments

Overview

Card payments are electronic transactions that use credit, debit, or prepaid cards to transfer funds from a cardholder's account to a merchant's account. The Convenient Checkout platform supports all major card types and provides a secure, compliant infrastructure for processing card payments across various channels and use cases.

Card Payment Networks

Our platform supports all major card networks:

• Visa: The largest global payment network
• Mastercard: Second-largest global payment network
• American Express: Premium card network with higher processing fees but affluent customer base
• Discover: Popular US-based payment network
• JCB: Japanese Credit Bureau, popular in Asia
• Diners Club International: Primarily used for travel and entertainment

How Card Payments Work

Card payments involve multiple parties and a series of steps to securely process transactions:

Card Payment Flow

1. Authorization:

   • Customer presents card information
   • Merchant sends authorization request to payment processor
   • Issuing bank approves or declines
   • Approval response returned to merchant

2. Authentication (for online transactions):

   • 3D Secure verification may be required
   • Customer authentication through issuing bank

3. Capture:

   • Merchant submits transaction for settlement
   • Funds are transferred from issuing bank to acquiring bank

4. Settlement:

   • Funds are deposited into merchant account
   • Typically takes 1-3 business days

5. Reconciliation:

   • Transaction data matched with bank deposits

Card Payment Types

Payment Type	Description	Use Cases
Credit Card	Revolving line of credit with deferred payment	Higher-value purchases, subscription billing
Debit Card	Direct deduction from bank account	Everyday purchases, bill payments
Prepaid Card	Pre-loaded with funds, no bank account needed	Gift cards, underbanked customers
FSA/HSA Cards	Special purpose healthcare spending cards	Medical expenses, health services
Virtual Cards	Card numbers generated for temporary use	One-time purchases, enhanced security

Card Processing Features

The Convenient Checkout platform provides comprehensive card processing capabilities:

Payment Entry Methods

Card Entry Options

• Manual Entry: Customer or agent manually enters card details
• Stored Cards: Tokenized cards saved in the customer's wallet
• Card-Present: In-person payments with physical cards (swipe, chip, tap)
• Digital Wallets: Apple Pay, Google Pay, Samsung Pay integration
• IVR Payments: Card details collected through interactive voice response
• CSR-Assisted: Customer service representative collects card data

Transaction Types

Supported Transaction Types

• Authorization: Verifies card validity and available funds without capturing funds
• Capture: Completes a previously authorized transaction
• Sale (Auth+Capture): Combined authorization and capture in a single step
• Refund: Returns funds to the customer's card
• Void: Cancels a transaction before settlement
• Verification: Card validation without financial transaction

Card Security Standards

Card payments require adherence to strict security standards:

PCI DSS Compliance

Payment Card Industry Data Security Standard

PCI DSS is a set of security standards designed to ensure all companies that accept, process, store, or transmit credit card information maintain a secure environment. Key requirements include:

1. Network Security: Install and maintain a firewall configuration
2. Data Protection: Encrypt transmission of cardholder data
3. Vulnerability Management: Regular system updates and security patches
4. Access Control: Restrict access to cardholder data
5. Network Monitoring: Regular testing of security systems
6. Security Policy: Maintain a policy addressing information security

The Convenient Checkout platform is fully PCI DSS compliant, reducing merchant compliance burden.

Tokenization

Card Tokenization Process

Tokenization replaces sensitive card data with a unique identifier (token) that has no exploitable value. Benefits include:

• Reduced Risk: Tokens cannot be used to conduct fraudulent transactions
• Simplified Compliance: Reduces PCI DSS scope and requirements
• Enhanced Customer Experience: Enables card storage for future use without security risks

Our platform handles tokenization automatically, securely storing customer payment methods for future use.

3D Secure (3DS)

Enhanced Authentication

3D Secure (including versions 1.0, 2.0, and 2.1) provides an additional security layer for online card transactions:

• Dynamic Authentication: Risk-based approach that only challenges suspicious transactions
• Liability Shift: Shifts fraud liability from merchant to issuing bank
• Reduced Cart Abandonment: Newer versions (2.0+) offer frictionless flows for low-risk transactions

Our implementation supports the latest 3DS protocols while maintaining a smooth customer experience.

Card Processing Implementation

Integration Options

Integration Type	Description	Use Cases
API Direct	Full control through RESTful API endpoints	Custom checkout experiences
Hosted Payment Page	Secure, pre-built payment collection	Quick implementation, reduced PCI scope
iFrame	Embedded payment form within merchant page	Balance between customization and security

Advanced Features

Recurring Payments

Subscription and Recurring Billing

Convenient Checkout supports various recurring payment models:

• Fixed Recurring: Same amount charged at regular intervals
• Variable Recurring: Amount varies based on usage or billing
• Installment Plans: Fixed number of payments over time
• Account Updater: Automatically updates expired card information
• Retry Logic: Configurable retry attempts for failed recurring payments

Recurring payments require explicit customer authorization and proper disclosure of terms.

Multi-Currency Processing

International Payment Support

Process transactions in multiple currencies:

• Dynamic Currency Conversion: Allow customers to pay in their local currency
• Multi-Currency Settlement: Receive funds in preferred currency
• Exchange Rate Management: Transparent exchange rate handling
• Regional Payment Methods: Support for region-specific card types

Card Verification and AVS

Fraud Prevention Measures

• Address Verification System (AVS): Compares billing address with issuing bank's records
• Card Verification Value (CVV/CVC): Validates the security code on the card
• Postal Code Verification: Verifies the billing zip/postal code
• Velocity Checks: Monitors transaction frequency for suspicious patterns
• Machine Learning Fraud Detection: Advanced risk scoring algorithms

Error Handling and Decline Management

Common Decline Codes

Understanding Decline Reasons

Decline Code	Description	Recommended Action
Insufficient Funds	Card lacks available funds	Suggest alternative payment method
Card Expired	Card expiration date has passed	Request updated card information
Invalid Card Number	Card number is incorrect	Verify card details
Do Not Honor	Generic decline from issuing bank	Try alternative payment method
AVS Mismatch	Address verification failed	Verify billing address
CVV Mismatch	Security code verification failed	Verify security code
Transaction Not Allowed	Card not enabled for this transaction type	Suggest alternative payment method
Suspected Fraud	Transaction flagged as potentially fraudulent	Contact customer to verify transaction

Decline Recovery Strategies

Optimizing Approval Rates

• Retry Logic: Intelligent retry strategy for soft declines
• Account Updater: Automatically refresh expired card details
• Decline Recycling: Process declined transactions at optimal times
• Smart Routing: Route transactions through different processors based on card type
• Alternative Payment Suggestions: Offer different payment methods after decline

Healthcare Industry Considerations

Healthcare-Specific Requirements

Card payments in healthcare have unique requirements:

• FSA/HSA Card Processing: Support for qualified medical expenses
• HIPAA Compliance: Secure handling of protected health information
• Eligibility Verification: Integration with insurance eligibility APIs
• Payment Plans: Flexible payment arrangements for large medical bills
• Patient Responsibility Calculator: Estimating patient payment portion