Payment Scenarios
For merchants and payment businesses, the ability to anticipate a variety of payment scenarios means building a stronger relationship with their customer base while also maintaining a more future-proof business model.
Recurring billing (Subscriptions)
With recurring payments, customers authorize the merchant to withdraw funds from their accounts automatically at specified intervals to pay for goods and services received on an ongoing basis.
Recurring payments play a key role in the success of the subscription business model, benefitting both merchants and customers by:
- Minimizing friction that comes with regular manual payments (forgetful customers, repeated payment data entry, risk of errors)
- Ensuring stable and timely cash flow into the merchant’s bank account
- Cutting down expenses associated with manual invoicing and payment processing
Use cases
- Utility bills
- Membership fees (gym memberships, car wash services, parking services)
- Subscription fees (streaming services, online gaming)
- Financial services (insurance, loan repayments, mutual investments)
One-click payments
One-click payments are a form of card-on-file transactions initiated by the cardholder. They make use of tokenizing the cardholder's card data and vaulting it for further secure processing.
This enables consumers to skip the authentication step and make a payment simply by triggering the “Pay” functionality (e.g., swipe, hit a button, or any equivalent thereof). On the merchant’s side, one-click payments ensure more reliable customer relationships, resulting in higher conversion rates.
Use cases
- Mobility as a Service apps (car sharing, gas stations, taxi services, parking, urban scooter sharing)
- Regular services (car wash, grocery delivery, monthly clubs)
- In-app cross-selling (marketing services and apps)
- IoT payments (wearable payment technology, smart home appliances, in-car purchases)
- Online gaming
Pay By Link (Paylink)
Pay-by-link enables merchants to generate a payment link and send it directly to the cardholder for an instant online payment via a dedicated payment page. Paylinks can be shared via multiple digital channels, including social media, invoices, QR codes, email, chat and SMS. This removes the need for merchants to have a website, app or a POS terminal to accept payments.
It is a convenient tool for omnichannel and contextual commerce that allows merchants to charge each customer precisely based on their requirements and the service received.
Use cases
- Individual travel programs
- Design services
- Car service parts
P2P and B2P payments
Person-to-person (P2P) and Business-to-person (B2P) payments using Original Credit Transaction (OCT) enable real time fund transfer between business and cardholder bank accounts.
Visa Direct
As a part of Visa Net processing, Visa Direct enables P2P money transfer, bill pay, disbursements, and cross-border remittances directly to eligible credit, debit, or pre-paid cards.
Mastercard MoneySend
MoneySend is the Mastercard transaction type that enables issuers connected to the Mastercard network to perform real-time money transfers worldwide.
Use cases
- Online platforms with a large customer, supplier or employee base
- Migration remittances
- Microfinance services
MOTO (mail order, telephone order)
MOTO payments allow businesses to acquire payments without the need to see the customer in person. Instead, the transactions are completed over the phone or by post.
Easy to set up and use, MOTO offers businesses a quick and convenient way to capture payment information and process transactions remotely from anywhere in the world, 24/7. Another advantage is that they allow merchants to transact with the customers who are either offline or are not comfortable with online payments.
Use cases
- Small businesses such as takeaways
- Travel agencies
- Mail order companies
Dynamic descriptor
Dynamic descriptor functionality allows merchants to adjust the statement descriptor on a per-transaction basis. This helps merchants create clear and accurate billing descriptors that fit well with the business.
More informative descriptors help customers to better identify and recognize charges on their account statement, avoiding ambiguity and preventing disputes and chargebacks.
Use cases
- Businesses with multiple online shops
- Merchants offering diverse or often changing product lines
- Additional cardholder ID verification & anti-fraud layer
Travel and Entertainment data
Using travel data allows merchants to exchange detailed industry-specific transaction data with their acquirer banks. This is particularly useful when the transaction requires more careful planning of the cash flow due to logistical complexity or other factors.
Travel data provides both merchants and banks with valuable insight for their business intelligence and analytics. One of the most common applications is in the travel industry, where flights are often booked well in advance, include various transfer and return scenarios, and are frequently subject to changes, rescheduling and cancellation. Access to comprehensive reservation data helps acquirers track the various transaction stages and assure a more transparent, secure and timely settlement.
Likewise, it benefits other verticals where businesses and banks require a more in-depth source of customer transaction data.
Use cases
- Flight booking services
- Car rental services
- Hospitality and tourism
Reversals and Refunds
Authorization reversals are performed shortly after a transaction has taken place, but before money has been withdrawn from the cardholder’s account.
A refund applies when a transaction has been settled and the funds have been transferred to the merchant's account.
Generally, reversals and refunds offer a way to deal with dissatisfied customers and erroneous transactions. They also help minimize the risk of disputes and chargebacks.