Stripe charges 2.9% + $0.30 per transaction.

For a $1,000 sale, that's $29.30 in fees.

With PayFlow, it's $25.00 (2.5% flat).

Over 1,000 transactions? $4,300 saved.

Why Payment Fees Are So High

Payment processing has 3 layers of fees:

1. Interchange fee (1.5-2.0%) → Goes to card issuer (Chase, Citi, etc.)
2. Assessment fee (0.15%) → Goes to card network (Visa, Mastercard)
3. Processor markup (0.5-1.5%) → Goes to Stripe, Square, etc.

Stripe's model: Bundle everything into 2.9% + $0.30 (easy, but expensive)
PayFlow's model: Interchange-plus pricing (transparent, cheaper)

How PayFlow Works

1. Direct Integration with Payment Networks

Instead of going through Stripe, we connect directly to:

• Visa
• Mastercard
• American Express

Result: Lower markup (0.5% vs Stripe's 1.5%)

2. Instant Payouts

Stripe holds funds for 2-7 days. We settle same-day (for an extra 0.5%).

3. Fraud Detection

Machine learning models catch fraudulent transactions:

• Geolocation mismatch
• Velocity checks (too many transactions too fast)
• BIN analysis (stolen card patterns)

Fraud rate: 0.08% (industry average: 0.5%)

The Technical Stack

Payment Gateway:

• Node.js + Express
• PostgreSQL (transaction records)
• Redis (rate limiting, deduplication)

Card Processing:

• Authorize.net (payment gateway)
• Stripe Connect (fallback for complex cases)

Fraud Prevention:

• TensorFlow fraud model (trained on 10M transactions)
• Stripe Radar (for high-risk merchants)

PCI Compliance:

• Tokenization (we never store raw card numbers)
• Level 1 PCI DSS certified infrastructure
• Quarterly security audits

Pricing Comparison

| Processor | Per-Transaction Fee | $100 Sale | $1,000 Sale | |-----------|---------------------|-----------|-------------| | Stripe | 2.9% + $0.30 | $3.20 | $29.30 | | Square | 2.6% + $0.10 | $2.70 | $26.10 | | PayFlow | 2.5% flat | $2.50 | $25.00 |

Annual savings (10,000 transactions at $500 avg):
Stripe: $14,600 in fees
PayFlow: $12,500 in fees
Savings: $2,100/year

Features

Multi-Currency Support

Accept payments in 150+ currencies:

• Auto-conversion at real-time exchange rates
• Settle in merchant's currency
• No hidden forex fees

Subscription Billing

• Recurring charges (monthly, annual)
• Trial periods
• Usage-based billing (per-seat, per-GB)

Instant Settlements

• Standard: 2-day settlement (included)
• Instant: Same-day payout (+ 0.5% fee)

Developer-Friendly API

const payflow = require('payflow');

const payment = await payflow.charges.create({
  amount: 10000, // $100.00 in cents
  currency: 'usd',
  source: 'tok_visa',
  description: 'Order #12345'
});

console.log(payment.id); // ch_abc123

Real-World Use Case

SaaS Company (500 customers, $99/month):

• Monthly revenue: $49,500
• Stripe fees: $1,435.50/month ($17,226/year)
• PayFlow fees: $1,237.50/month ($14,850/year)

Savings: $2,376/year

When to Use PayFlow

Good fit:

• SaaS companies (recurring revenue)
• E-commerce (high volume)
• B2B transactions (large amounts)

Not a fit:

• Processing < $10K/month (Stripe's simplicity wins)
• Need instant global expansion (we support 50 countries, Stripe has 100+)

Security & Compliance

PCI DSS Level 1:

• Tokenization (we never touch card data)
• Encrypted storage (AES-256)
• Quarterly penetration testing

Fraud Protection:

• Machine learning models (99.2% accuracy)
• 3D Secure (SCA compliance for EU)
• Address Verification (AVS)

Chargebacks:

• Automated dispute handling
• Evidence submission
• 72% win rate (industry avg: 40%)

The Future: Crypto Payments

We're adding:

• Bitcoin (via Lightning Network)
• USDC (stablecoin)
• Instant settlement (no 2-day wait)

Fee: 1.0% (vs 2.5% for credit cards)

Lessons Learned

1. Compliance is hard. PCI DSS took 8 months.
2. Fraud is real. Lost $12K before ML model was trained.
3. Banks are slow. Instant payouts require partnerships.
4. Chargeback protection matters. Document everything.

Want lower payment fees?
Get Started with PayFlow