Industries20 chapters2 h 58 min read
Payments
The playbook's Payments section is about handling money correctly anywhere: amounts, idempotency, state machines and ledgers. This volume is about the industry those systems plug into. Card networks, banks, processors and regulators each set rules, and almost every hard problem in a payments platform is one of them doing exactly what it's supposed to.
It reads in order: how a payment moves, whether by card, terminal, wallet or bank, and what it costs; who sets the rules; taking payments in, keeping cards on file, and defending against fraud and disputes; moving money out and the bank accounts behind it; and finally what it takes to become, secure and certify the provider everyone else builds on.
- 01How Card Payments WorkThe parties behind a card payment, why authorization, capture, clearing, settlement and funding are separate events, and the ISO 8583 underneath it all.10 min
- 02Card-Present PaymentsHow in-person card payments work: EMV chip cryptograms, cardholder verification, contactless, Tap to Pay, terminals, P2PE, and the risk of going offline.11 min
- 03Wallets & Local Payment MethodsApple Pay and Google Pay as network tokens, PayPal, BNPL, and the bank rails other countries pay with: SEPA, iDEAL and Wero, Pix, UPI and UK pay-by-bank.9 min
- 04Interchange & PricingWhat a card payment costs and why: interchange, regulated debit, network fees, downgrades, Level 3 data, pricing models, and how platforms earn on payments.9 min
- 05The Payments RulebookHow payments rules fit together: network contracts like PCI DSS and Nacha, the laws behind them, who enforces each, and which apply from merchant to provider.9 min
- 06Merchant OnboardingKnowing who processes payments on a platform: KYC and KYB, a verification state machine, progressive onboarding, underwriting, and an API that says what's due.6 min
- 07Strong Customer Authentication & 3-D SecureWhen a card payment needs the cardholder to authenticate, the exemptions that skip it, why the liability shift matters, and how an API models the extra step.7 min
- 08Stored Cards & Recurring BillingSaving a card and charging it later: the stored credential framework, network transaction IDs, network tokens, account updater, retry rules and dunning.9 min
- 09Fraud & RiskDeciding which payments to allow, review, challenge or block: the cost of both mistakes, rules and models together, card testing, and auditable decisions.7 min
- 10Disputes & ChargebacksHow a dispute moves from inquiry to arbitration, what it does to the ledger, the monitoring thresholds that end merchant accounts, and who pays on a platform.7 min
- 11Surcharging & FeesPassing card costs to the payer: surcharges, convenience and service fees, cash discounts, the network caps and state laws behind them, and safe fee math.8 min
- 12Payouts & SettlementHow a card payment becomes money in a merchant's bank: settlement timing, fees as ledger entries, payout schedules and reserves, failures, and reconciliation.6 min
- 13Treasury & Bank OperationsThe bank accounts behind a payments ledger: custodial FBO accounts, pass-through insurance, funding and prefunding, bank reconciliation, moving money safely.10 min
- 14ACH & Bank TransfersHow ACH really moves money: the parties, SEC codes and files, why settled isn't final, return windows, the Nacha rules you inherit, and when RTP or FedNow fit.12 min
- 15Vendor PayoutsPaying vendors and suppliers: ACH, virtual cards, checks and instant rails, vendor enrollment, stopping redirect fraud, funding, 1099s and reconciliation.10 min
- 16Processor RoutingRunning payments over more than one processor: when it pays, routing by card, cost and approval rate, US debit, safe failover, tokens and reconciliation.8 min
- 17Payments for Software PlatformsEmbedded payments for vertical software: referral, reseller, managed and registered payfac models, the tenant hierarchy, fund splits, 1099-K and support.10 min
- 18HSMs & Key ManagementPayments cryptography as its own discipline: HSMs, key hierarchies, key blocks, DUKPT and PIN blocks, the move off TDES, key ceremonies and cryptoperiods.11 min
- 19Network CertificationGoing live and staying live on card networks: processor and host certification, EMV levels, 3DS approval, and the twice-yearly network release calendar.7 min
- 20Becoming a Payment ProviderWhat it takes to be a Stripe or a payfac rather than integrate one: sponsor banks, card networks, PCI as a service provider, licensing and the money.12 min