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Payment Methods

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TL;DR
  • The method your customer picks changes your fees, your fraud exposure, your settlement timing and your dispute rules
  • A 1% fee difference across $1M of volume is $10,000 a year. Your method mix is a cost lever, not a detail
  • Card-not-present fraud runs about 10x card-present. ACH fraud doesn't look like either
  • In a hurry? The Cheat Sheet has cost, timing, disputes and fraud for every method in one place

Say "accept payments" and most people picture a credit card. That's one method out of a dozen, and the one your customer picks changes your fees, your fraud exposure, your settlement timing and what happens when they dispute it.

Why it matters depends on where you sit:

  • Merchants: 1% on $1M is $10,000 a year. That isn't a rounding error.
  • Fraud teams: card-not-present runs about 10x card-present, and ACH doesn't behave like either.
  • Finance: settlement runs from same-day to a week depending on the method.
  • Issuers: every rail has its own economics, risk profile and dispute mechanism.
Need Quick Answers?

The Cheat Sheet has all the key tables in one place: cost, timing, disputes and fraud by method. It's the one to bookmark.

What This Guide Covers​

  • Credit, debit, and prepaid cards (including commercial-card data programs)
  • ACH, SEPA, and direct debit systems worldwide
  • Real-time payments (RTP, FedNow, Faster Payments, PIX, UPI)
  • Instant card payouts (Visa Direct, Mastercard Send)
  • Digital wallets (Apple Pay, Google Pay, PayPal, Venmo, Cash App, Skrill, Neteller, Alipay)
  • Pay by Bank and Open Banking
  • BNPL (Klarna, Affirm, Afterpay)
  • Crypto and stablecoins
  • Mobile money (M-Pesa, GCash, GrabPay)
  • Carrier billing and voucher/eCash methods (OXXO, Boleto, Konbini, Paysafecard)
  • Wires (domestic and international)

Payment Methods at a Glance​

MethodTypical CostSettlementChargebacks?Best For
Credit Card2.5-3.5% all-inT+2-3Yes (120 days on Visa/Mastercard; Amex up to 120, with exceptions; Discover: Not published)Retail, e-commerce
Debit Card0.5-1.5% all-in on interchange-plusT+1-2Yes (60 days)Everyday purchases
ACHVaries by provider and plan (examples)Provider-dependentDebit return rulesRecurring, B2B
RTP/FedNow$0.01-$0.50InstantNoUrgent payouts
Digital WalletsSame as cardT+2-3Via cardMobile checkout
BNPL2-8%T+1-2Provider handlesDiscretionary goods
Wire$25-$40 flatSame dayNoLarge B2B
Mobile Money1-3%VariesProvider-specificEmerging markets

Discover doesn't publish its dispute windows. For your own response, work to the date on your notice.

Those are all-in costs, markup included. They aren't interchange. Debit only gets to 0.5-1.5% on interchange-plus. On a flat rate you're paying the same for debit as for credit. The interchange underneath is a lot lower than either row looks. Regulated debit is 0.05% + $0.21, and a normal card mix blends to about 0.89% + $0.158 in person, 1.36% + $0.152 online. Where that comes from.

Detailed Guides​

Card Payments​

Credit, debit, prepaid, and commercial cards. Interchange rates, network differences, and commercial-card data programs.

Bank Transfers & ACH​

ACH, SEPA Direct Debit, UK Direct Debit, BECS. Return codes, timing, and when they beat cards.

Real-Time Payments​

RTP, FedNow, and global instant payment systems. Plus push-to-card payouts via Visa Direct and Mastercard Send.

Digital Wallets & Pay by Bank​

Apple Pay, Google Pay, PayPal, Venmo, Cash App. Open Banking and A2A payments.

Regional Payment Methods​

When to add iDEAL, Boleto, Pix, OXXO, Alipay and the rest. Which processors support them, and whether it's worth the integration.

Alternative Methods​

BNPL, wires, international APMs, mobile money, carrier billing, vouchers, and crypto.

International Payments​

Cross-border payments, FX, local entities, tax and regulatory questions, and how you get your money home.

Choosing Payment Methods​

Decision frameworks, industry recommendations, fraud profiles, and the push vs. pull mechanics that decide how much risk you're carrying.

Cheat Sheet​

Every key reference table in one place. Cost, timing, disputes, fraud. It's the one to bookmark.

Do next​

Look up​

Deeper​

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Something wrong on this page? Email matt at paymentsandrisk.com and say what needs fixing.