Latest news with #recurringpayments
Finextra
3 days ago
- Business
- Finextra
DLocal launches SmartPix payments in Brazil
dLocal, the leading cross-border payment platform specialized in emerging markets, today announced the launch of SmartPix, , a groundbreaking payment solution that enables merchants in Brazil to process tokenized Pix payments, including recurring and on-demand charges, without requiring customers to manually authorize each transaction. 0 This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. While Pix has achieved widespread adoption in Brazil, it currently presents challenges for businesses relying on recurring or repeat transactions. The existing system requires users to manually authorize each payment individually, creating friction, particularly in subscription-based scenarios. The Central Bank of Brazil has launched Pix Automático, which is designed to tackle the problem of recurring payments. Pix Automático is great for predictable payment schedules, well-suited for recurring payments with the same amount to the same merchant, such as streaming or music subscriptions. dLocal has also been enabling Pix Automático for merchants whose needs align with this model, having worked in a sandbox for the last months to optimize their onboarding. dLocal's SmartPix is the only solution to fill the gap between Pix and Pix Automatico, addressing the need for more flexible recurring and automated payments. With SmartPix, merchants can securely store customers' Pix credentials, similar to card-on-file, and initiate charges in real time, even when the amounts vary. This fully tokenized, one-click Pix experience means no more QR codes, no repetitive approvals, and no checkout friction. The result is higher conversion for payments, better customer retention, and a dramatically improved user experience. 'With SmartPix, dLocal is unlocking the full potential of Pix for businesses that rely on repeat or dynamic transactions,' said Gabriel Falk, Product Manager at dLocal. 'This product eliminates the need for users to approve every payment, allowing merchants to offer the kind of seamless, secure experience that modern consumers expect, and all within the regulatory framework of Brazil's Open Finance environment.' SmartPix, exclusively powered by dLocal, is a QR-free, frictionless payment experience for the end user, and is expected to achieve higher conversion and user retention. dLocal's new solution excels in situations where the amount can vary each time, such as using it for ride-hailing or food delivery. It solves not only recurring payments but also on-demand merchant-initiated transactions that can have different ticket sizes and require no need to redo the checkout.
RNZ News
22-07-2025
- Business
- RNZ News
Westpac warns of multi-million-dollar 'subscription trap'
Customers often only realise what is happening when they see the recurring fee from a credit card account. File photo. Photo: 123RF New Zealanders are losing millions of dollars a year to "subscription traps", one bank says. Westpac said it had helped to stop more than $25m in unwanted charges being processed on to the cards of unwitting customers. Westpac NZ head of customer care operations Peter Barnes said many overseas-based websites were selling goods and services that hooked customers into recurring subscription payments. The bank implemented a block in April 2024 and had stopped 20,000 customers from making these sorts of payments within the past three months. Barnes said the block was implemented after a spike in customer complaints and feedback on overseas subscriptions. Many were businesses based in Europe and the UK, he said. Barnes said it would only apply to businesses who misled customers and then made it extremely difficult to cancel recurring payments. "These types of businesses aren't necessarily acting fraudulently, because they do disclose the subscription details in their fine print, but typically they don't offer this information up front," Barnes said. "It's not normally until the following month or two when [the customer] sees the recurring fee from a credit card account that they actually twig that something's not quite right." He said it was an unethical way of making money but was seen in everything from gift boxes, shoes, clothing and accessories to sportswear and digital content. "This is not just a case of someone signing up for a free trial and forgetting to cancel before the subscription kicks in. Typically, once someone has made a purchase through a merchant like this, they only realise they have signed up to a subscription when they see further charges on their credit card. "When they contact the merchant to dispute the transaction, it can often be difficult and time-consuming to cancel the subscription, and sometimes the merchant may be completely uncontactable. Customers may eventually resort to cancelling their credit card to stop the payments, which can be disruptive and inconvenient. "Blocking these types of payments is another way we can help protect customers, on top of initiatives like rolling out a confirmation of payee service and enhancing our fraud monitoring systems with biometric technology." He said a block would also stop customers' details being made available to unscrupulous third parties online. Westpac was working with other banks on the problem. "While this payment block has been working well so far, we encourage New Zealanders to be careful when transacting online, including reading the fine print when making purchases. "If something doesn't look or feel right, take a step back and check whether the payment you're making is legitimate." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Yahoo
17-07-2025
- Business
- Yahoo
Chargebacks persist as court voids FTC rule
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. The death of a federal 'click-to-canel' rule by a court ruling this month means consumers peeved about recurring charges will have one less defense, say some industry experts who see parts of the payments refund process as woefully outdated. Merchants, meanwhile, contend with billions of dollars in disputed payments each year as customers submit chargeback requests. The Federal Trade Commission rule mandating that merchants ease their cancellation processes might have reduced some chargebacks, some experts said. In October, the FTC under the Biden administration passed changes to the agency's Negative Option Rule, with both Republican commissioners and multiple business groups opposed. The rule 'sought to impose requirements that would put consumers in a better position, and an aftereffect of that would have likely been less confusion or less alleged confusion, and therefore less disputes and chargebacks,' Zach Lerner, senior legal director at law firm ZwillGen, said Tuesday in an interview. The rule update – which would have covered recurring payments such as magazine subscriptions, health gym memberships and streaming services – also included recurring charges between businesses. The action drew several industry lawsuits, partly because of the rule's broad sweep and vague language in the now-defunct rule, Lerner said. On July 8, the Eighth Circuit Court of Appeals vacated the rule, finding procedural fault with how the FTC enacted the changes. 'While we certainly do not endorse the use of unfair and deceptive practices in negative option marketing, the procedural deficiencies of the Commission's rulemaking process are fatal here,' the three-judge panel said in its opinion. The FTC has no comment on the court ruling or potential next steps in the matter, an agency spokesperson said in an email last week. The court's ruling was 'very disappointing,' Ruth Susswein, director of consumer protection for Consumer Action, said in a July 10 email. However, she added, 'I'm heartened by the fact that the court ruled against the process used to create the rule, rather than the arguments made to protect consumers and prevent customer manipulation.' The Health and Fitness Association, which filed an amicus brief in the federal litigation, welcomed the appeals court's ruling in a July 8 press release. HFA members 'are fully committed to advancing consumer-friendly cancellation policies,' the association said. We believe strongly in transparency and ease of use, and we are actively working to support policy solutions — especially at the state level—by partnering with lawmakers to enact clear, reasonable laws that make it easier for consumers to manage their memberships without imposing rigid or unworkable mandates on businesses.' Absent the FTC rule, 'states will continue to fill the void,' said Lerner, who works in Washington and advises merchants. 'Certain states in particular will look at what just happened to the negative option rule, and say, 'We really need to do even more.'' The relationship between card chargebacks and the various state and federal laws that touch on recurring charges is murky, said Monica Eaton, chief executive of Chargebacks911, a dispute-management software company that works with acquirers, large merchants and card issuers. The growth of chargebacks was fueled by a surge of online commerce during the COVID-19 pandemic, and is still outpacing retail sales, she said. Consumers typically use a bank's mobile app or website to quickly dispute a payment, avoiding the need to use phone, chat or email contacts. 'How can we get the consumer to build a relationship with the business they're purchasing from instead of just going straight to their bank?' Eaton said July 10 in an interview. More than three-quarters (76%) of consumers skip merchants and dispute charges directly with their bank, according to a survey of about 1,200 people in the U.S. and UK by Chargebacks911 released Tuesday. Almost 9 in 10 consumers said they trusted their bank to resolve disputes quickly, the survey found. 'Customer loyalty is being reinforced not through direct merchant engagement, but through repeated satisfaction with bank-mediated outcomes,' the company wrote about the findings. Another reason consumers turn to bank-dispute methods is because they consider charge disputes 'as simply an alternative to traditional refunds,' the report said. U.S. merchants face about $170 billion in 'chargeback fraud and misuse' each year, according to Chargebacks911, which has its U.S. headquarters in Clearwater, Florida. Billing descriptions also play heavily into chargebacks, with 40% of those surveyed saying they often don't recognize charges because of confusing or incomplete descriptors denoting a payment, according to the survey. 'We don't need to stop the amount of chargebacks, we need to retool the way this (process) works,' Eaton said. Recommended Reading How active shooters pay for guns Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Finextra
20-05-2025
- Business
- Finextra
Galileo makes it easier for people to update their default payment method
Galileo Financial Technologies, SoFi Technologies, Inc.'s Technology Platform (NASDAQ: SOFI), has launched Galileo Payment Method Switch, powered by Atomic. 0 This product enables banks, fintechs and brands to make it easier for people to update their default payment method—including debit cards, credit cards, and bank accounts—across leading merchants, subscription services, utility providers, and digital wallets like Venmo or PayPal, all in one place. Clients can embed Galileo Payment Method Switch into their apps, positioning their own issued card or account as the most visible and convenient option for recurring bills and everyday payments-helping them become their customers' preferred choice as subscription-based and automatic payments continue to rise. Global recurring payment transactions are projected to exceed $15.4 trillion in 2027. According to Atomic, people switch an average of three to five payments during their first visit, linking approximately $420 in recurring monthly spend. These usage patterns underscore growing demand for fast, easy ways to manage payments—especially when cards expire or accounts change. Galileo Payment Method Switch lets people update their payment method in seconds. With a single integration-also compatible with Galileo Direct Deposit Switch-clients can speed up launch timelines and give people an easy way to update payment methods, directly from their app. Atomic provides the merchant connectivity to update information across billing systems, while Galileo manages the secure exchange of card and account details, helping clients simplify payment management for their customers, drive account primacy, and earn more interchange revenue. 'Galileo Payment Method Switch allows banks, fintechs and brands to help customers easily manage bill payments without leaving an app they already trust,' said Prashant Shah, Vice President, Product Management at Galileo. 'This solution keeps people spending in a branded environment, creating new recurring revenue streams, which are proven to be stickier, more predictable and scalable. We're pleased to expand our role as the one-stop shop for supporting modern payments. Benefits for Consumers • Easy Updates in One Place: Change or update payment details-such as a new debit or credit card, or a different bank account- for thousands of popular merchants, subscriptions, and utility providers all from one banking, fintech, or brand app. • More Control and Flexibility: Choose which card or account to use for each bill, giving them more control over how they pay. • Fewer Payment Errors: Avoid missed payments or mistakes with fast, secure payment updates-no need to manually enter card or account details on multiple merchant websites. Benefits for Banks, Fintechs and Brands • Account Primacy and Increased Revenue: Boost customer stickiness by allowing them to set a default card or account for recurring bills and subscriptions, thereby increasing recurring payments and interchange revenue whenever a card is used. • Faster Setup: One-time integration with simple steps that help customers get started quickly and stay connected. • Stronger Loyalty: Making payments easy builds lasting customer relationships. 'We're helping financial services providers stay top of wallet by delivering a more seamless experience for their customers,' said Jordan Wright, Co-founder and CEO of Atomic. 'Our continued partnership with Galileo enables institutions to make it easier for people to update their payment methods—driving increased spend and deeper engagement.'
