Software-led distribution is leading the charge in the payments ecosystem rapid evolution. For software providers, this transformation presents an incredible opportunity: to turn payment processing into a meaningful, recurring revenue stream. But only if you play your cards right. 

The Stat That Says It All 

A recent study from The Strawhecker Group (TSG) revealed that 76% of non-acquiring ISVs received a commission or residual split from their integrated payment partner. In other words, the majority of ISVs are monetizing payments without becoming payment processors themselves. If you’re not part of that 76%, you’re potentially leaving money on the table.

Source: The Strawhecker Group, ISV Mindset Case Study, 2020

What This Means 

Non-acquiring ISVs do not take on the operational complexity or liability of payment processing. Instead, they integrate with a payments partner, route transaction volume through that provider, and earn a revenue share for doing so. It’s a low-risk, high-opportunity way to grow profitability while improving the merchant experience. 

Why It Matters

• Revenue Diversification: Payments offer recurring revenue that scales with your client base (merchants).
• Client Stickiness: Integrated payments make your platform harder to leave.
• Improved Client Experience: Embedded payments reduce friction, simplify reconciliation, and enhance UX.
• Competitive Advantage: If you’re not offering integrated payments, your competitors probably are.

How to Navigate Your Payments Strategy

If you’re ready to move toward an embedded payments model or want to optimize your existing setup, here are a few steps to guide your strategy:

1. Define Your Monetization Model There are multiple models to choose from: Referral, Agent, ISO, Pay-Fac as a Service. Each offers different levels of control, complexity, and revenue share. Understand the pros and cons of each and determine what aligns best with your resources and growth plan.
2. Prioritize Support Over Commission According to the same TSG study, 37% of ISVs said support was the #1 factor in choosing a payment provider. A good partner helps with integration, onboarding, merchant adoption, and ongoing support. Don’t trade long-term value for short-term payouts.
3. Don’t Go It Alone Many ISVs struggle because they try to build and manage a payments strategy without the right expertise. A true payments partner will act as an extension of your team, helping you:
1. Map out technical integration
2. Train your team
3. Support your merchants
4. Maximize your revenue potential
4. Think Beyond Authorizations Payments should be more than just approvals and deposits. The best partners will help you offer omnichannel capabilities and specialized solutions that meet your unique functionalities and payment flow requirements.

The future of payments is embedded. And for ISVs, that means the future is profitable, but only with the right strategy and the right partner. If you’re not yet monetizing payments, it’s time to get started. And if you are, it’s time to ask whether your current partner is doing enough to support your growth.

Want to explore how to make payments your competitive advantage? BOLD offers flexible, transparent partnerships designed for software companies. Whether you need guidance or full-on support, we meet you where you are. Let’s talk about growing together.

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Visa’s compliance playbook has changed. If your platform touches payments in any way, these updates apply to you. And ignoring them doesn’t just mean headaches for your merchants, it means risk for fines, to your reputation, your revenue, and your roadmap.

Consolidation of Monitoring Programs

Effective April 1, 2025, Visa has consolidated its Visa Dispute Monitoring Program (VDMP), Visa Fraud Monitoring Program (VFMP), and Visa Acquirer Monitoring Program (VAMP) into a unified framework. This new structure introduces updated thresholds and metrics, such as the “VAMP rate” and “enumeration rate,” focusing on a comprehensive view of disputes and fraud. While the initial rollout is in Europe, global enforcement, including in the U.S., is anticipated to follow. These programs make it easier to penalize fraud, disputes, and abuse.

Stricter Surcharge Regulations

Visa is actively enforcing its surcharge regulations by employing mystery shoppers, issuing warning notices, and imposing fines to ensure merchants adhere to the permissible surcharge limits. 

Implementation of PCI DSS 4.0

As of April 1, 2025, all entities involved in processing credit or debit card payments must comply with the enhanced security requirements outlined in the Payment Card Industry Data Security Standard 4.0 (PCI DSS 4.0). This includes stricter controls on payment page scripts, automated solutions for detecting web-based attacks, and comprehensive risk analyses.

Implications for Software Providers

If your software offers embedded payments, merchant-facing checkout flows, or even just invoice generation, you’re part of the equation.

And when compliance issues arise, Visa doesn’t blame the merchant alone. The platform gets pulled into the scrutiny, especially if:

• Fraud thresholds are crossed
• Disputes escalate
• Surcharge practices are noncompliant
• Payment scripts are improperly managed

The real risk? These violations often show up before you even know they’re happening, unless you have a partner actively monitoring and guiding your portfolio.

Actionable Steps

Software providers need to do more than react. They need to prepare:

1. Review and Update Compliance Protocols: Ensure your software aligns with the new VAMP metrics and PCI DSS 4.0 requirements.
2. Educate Your Clients: Inform your merchants about the updated surcharge caps and the importance of compliance to avoid penalties.
3. Implement Robust Monitoring Tools: Incorporate tools that can detect and prevent fraud and disputes effectively.
4. Stay Informed: Regularly consult Visa’s official communications and industry news to stay updated on any further changes.

Why This Matters (and Where BOLD Comes In)

Visa’s rules aren’t slowing down. And you don’t have time to keep second-guessing your payment setup.

Whether you’re just looking for informed guidance or full hands-on support, BOLD helps software providers navigate the complexity of payments with clarity and confidence.

We’re not here to upsell, we’re here to help you scale safely.

Sources:

Ravelin. (2025). Visa’s VAMP Changes: What You Need to Know in 2025. Retrieved from https://www.ravelin.com/blog/visa-vamp-changes-chargeback-disputes 

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One clear trend is rising to the top of payments: consumers favor a single credit card over all others, and that “top-of-wallet” card dominates their spending. Understanding this behavior is essential for businesses looking to attract and retain customers.

What Is a Top-of-Wallet Card?

A “top-of-wallet” credit card is the card a consumer reaches for first, whether for groceries, gas, online purchases, or bills. According to the PYMNTS Credit Economy: Top-of-Wallet Credit Cards report, consumers who have three or more cards still concentrate most of their spending on just one. In fact, nearly half (46%) of consumers with three or more cards use their primary card multiple times a week.

Why does this matter? Because top-of-wallet status significantly influences purchase volume and customer loyalty.

How Top-of-Wallet Cards Influence Spending

On average, consumers carry about 2.8 active credit cards. Yet their preferred card sees the lion’s share of activity, with an average monthly balance of $1,903 compared to just $1,202 for their second-choice card and $929 for their third.

This effect is even more pronounced among younger consumers:

• Gen Zers use 30% of their primary card’s credit limit monthly.
• Millennials follow closely behind at 27%.

These trends show that younger generations are deeply reliant on their go-to cards not just for emergencies but for everyday transactions, subscriptions, and even rent.

Why Consumers Choose Their Primary Card

So what makes a card top-of-wallet?

• Rewards or discounts were cited by 48% of consumers as a major reason for choosing their primary card.
• High credit limits, low interest rates, and good customer service followed as additional drivers.

Interestingly, consumers who use their cards for everyday purchases were the most rewards-motivated, while those using them for bills prioritized security features.

What This Means for Businesses

When your business only accepts limited payment methods or fails to support common card networks, you risk falling off the consumer’s radar. Worse, you risk losing repeat purchases.

Here’s what businesses can do to stay aligned with consumer payment behavior:

1. Accept All Major Credit Cards

Consumers rely heavily on their primary card. Not accepting it could cost you a sale, especially for younger, high-usage groups like Gen Z and Millennials.

2. Offer Payment Flexibility

The study shows that 48% of Gen Z would use their card more if they could choose payment options at checkout, like paying later or from a connected bank account.

3. Optimize for Rewards

Consumers want to use the card that benefits them most. Offering loyalty points, discounts, or integration with popular rewards platforms can influence card choice and increase transaction frequency.

4. Keep Payment Friction Low

Nearly 1 in 5 shoppers abandon purchases due to friction at checkout. Make sure your payment processing is fast, secure, and mobile-friendly.

Conclusion

Top-of-wallet card habits offer a window into the modern consumer mindset: convenience, rewards, and control matter more than ever. By understanding and responding to these habits, businesses can create a seamless experience that meets customers where they are at the top of their wallet.

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There’s nothing more frustrating than having software tailored for a specialized vertical… only to have your payments provider treat it like a generic checkout cart.

From summer camp POS platforms to platforms for pet groomers, feed and tack shops, pawnbrokers, sports leagues, ski retailers, or pet crematoriums, ISVs building for niche verticals don’t follow a one-size-fits-all playbook. So why should your payments partner?

The reality? Too many ISVs are stuck with legacy processors that don’t understand their business models, don’t prioritize their needs, and can’t (or won’t) flex to accommodate complex payment workflows. And it’s slowing growth. 

It’s time to rethink what a true embedded payments partner looks like. 

What Is a “Super-Niche” Vertical in Payments?

We’re talking about software that powers very specific industries with unique customer behaviors and operational requirements. These aren’t general tools, they’re built for businesses with: 

• Recurring billing models (e.g., camps, gyms, nonprofits)
• Alternative payment methods (anything other than cash, debit card, or credit card, such as ACH, digital wallets, buy now pay later (BNPL), or payment installments, for example)
• Memberships, donations, parent payers, custom fee structures
• High fraud risk (like food delivery or on-demand services)
• Real-world + digital services (true omnichannel needs)

If you’re nodding your head, chances are you’ve already felt the friction of trying to force a horizontal payment platform to fit a vertical problem.

The Problem with One-Size-Fits-All Payment Solutions

Legacy providers are often rigid. They’ve built horizontal solutions that serve the masses but struggle when it comes to deep integration or vertical-specific innovation. That means:

• Lack of flexibility: Can’t adapt to your specialized core requirements or platform roadmap
• Limited control: Your brand gets buried under their restrictive tools, and they’re holding back your growth plans 
• Slow support: Can’t understand or refuse to spend the time to understand the unique intricacies of your industry
• High fees: Refuse to adapt their fee model to meet the reality of your niche market, and no clear value in return

To truly deliver deep verticalization, ISVs must partner with a payments provider that genuinely understands their unique challenges, helps them serve their clients effectively, and supports their growth.

In fact, a recent Envisionit survey showed that the top reasons ISVs switch providers include better tech, lower fees, and better customer support. 

Vertical Expertise Isn’t Optional, It’s the Advantage 

Verticalized payment partners offer more than just processing, they bring a strategic understanding of your market, which leads to better integration, fewer support issues, and more payments monetization opportunities​.

For example, a niche ISV serving childcare organizations may need built-in ACH and subsidy billing features. A self-storage platform might prioritize fast merchant onboarding with low fraud risk. A flexible payments partner knows that and delivers without requiring you to hack together workarounds.

Diving into Omnichannel 

Today’s vertical software providers often support online, mobile, unattended, and in-person experiences. Think: sports clinics registering kids via app, and taking payments on-site. Or spas with recurring memberships and one-off POS payments.

If your provider can’t bridge the gap between in-store, mobile, unattended, and online channels with a unified experience and support all your user cases, you’re leaving money (and customer satisfaction) on the table.

Why BOLD Is Built for ISVs Like You

At BOLD, we believe control + customization = power. And ISVs should never be boxed in by their payments stack.

Here’s how we’re different:

• Vertical-friendly from the start: Over the years, we have worked with ISVs and merchants in a number of verticals, sub-verticals, and niche verticals—so we understand how crucial verticalization is.
• Flexible solutions: Build what you need, not what a legacy provider allows.
• Understand and support all your use cases: From countertop terminal to mPOS mobile devices, and self-service unattended to texting invoice payment link and pay-by-app, we support smooth end-to-end experiences.
• White-label support: Let your brand shine across the payments journey.
• Transparent monetization: We offer revenue sharing with full transparency, so you can build a sustainable business.

But most importantly? We listen and spend the time to truly understand your unique needs. If your use case is outside the box, we don’t say “no”, we ask, “how can we make this work?”

Niche ISVs are creating incredible platforms, but many are being held back by payment partners that aren’t built to support innovation. Don’t let that be your story.

Choose a partner who understands your vertical, shares your values, and is as invested in your growth as you are.

Sources:

Envisionit. ISO/ISV Field Survey Results & Takeaways. 2024.

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In recent weeks, Visa has intensified its enforcement efforts on non-compliant fee programs, affecting thousands of merchants across the U.S. For first-time violations, merchants are issued $1,000 assessments for non-compliant fee programs, so it’s essential that resellers, ISOs, and payment providers understand what’s changing, what’s required, and how to keep their merchants in compliance. 

This blog breaks down what Visa’s new enforcement push means and how you can help your merchants avoid costly penalties.

What’s Happening?

Visa has issued widespread notifications to acquirers, flagging merchants who are utilizing the non-compliant Non-Cash Adjustment program or have implemented compliant fee programs incorrectly or without following proper procedures. Acquirers are being charged upwards of $1,000 per assessment. The goal is clear: Visa is cracking down on non-compliant practices, and enforcement is no longer theoretical; it’s actively happening. 

What Is a Surcharge?

A surcharge is an additional fee a merchant adds to a transaction when a customer chooses to pay with a credit card. It’s intended to help merchants offset the cost of credit card processing fees. However, surcharges must be implemented with strict adherence to Visa’s guidelines to be considered compliant.

According to Visa’s U.S. Merchant Q&A (2024), merchants may only surcharge credit cards, not debit or prepaid cards, and must not exceed 3%.

Key Visa Surcharge Compliance Requirements

If your merchants plan to surcharge, they must follow these rules:

• Provide notice to their acquirer at least 30 days prior to implementing a surcharge.
• Display compliant signage at the point of entry and point of sale.
• Include the surcharge amount in a dedicated field (Field 28) of the transaction message.
• Limit surcharges to credit cards only—debit and prepaid card transactions cannot be surcharged, even if “credit” is selected on the terminal.
• Clearly disclose the surcharge on the receipt and during the transaction.
• Ensure surcharge amount is not higher than 3%

Additionally, merchants operating in certain states (e.g., Connecticut, Maine, Massachusetts, Oklahoma, and Puerto Rico) are legally prohibited from surcharging. Others, like Colorado and New York, have specific requirements that must also be followed​.

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What Does Non-Compliance Look Like?

Examples of non-compliance include:

• Applying a surcharge to debit or prepaid card transactions.
• Charging more than the allowed amount above the 3% cap. 
• Failing to provide proper signage and receipt disclosures.
• Not notifying the acquirer 30 days prior to surcharging.
• Labeling the fee incorrectly on receipts or signage.

Even seemingly minor violations—like improper wording on signage or charging a surcharge on a debit card that was run as “credit”—can result in a $1,000 assessment from Visa.

You can view Visa’s compliant signage samples here​.

What’s the Difference Between a Surcharge and a Cash Discount?

It’s critical that resellers and merchants understand that surcharging and cash discounting are not interchangeable.

• A surcharge is added on top of the advertised price when a customer uses a credit card.
• A cash discount is a discount from the listed price if the customer pays with cash or another non-card method.

Cash discounting must also be implemented correctly to avoid being flagged as an illegal surcharge. The full card price must be listed upfront, not added at the end of the transaction​.

What Should Resellers and ISOs Do?

As a reseller, your reputation is tied to the success and compliance of your merchants. Here’s what you can do to stay ahead of Visa’s enforcement push:

1. Audit merchant signage and receipts. Ensure disclosures match Visa’s requirements.
2. Educate merchants. Many violations are due to misunderstanding.
3. Verify surcharge limits. Double-check they’re within the 3% limit.
4. Encourage timely notifications. Merchants must notify their acquirer 30 days before they start surcharging.
5. Provide proper training. Equip your teams with the resources they need to help merchants implement compliant programs.

If a merchant receives a violation notice, time is of the essence. Prompt resolution and documentation can help reduce the risk of further assessments or account funding holds.

BOLD’s Support for Partners

If you’re working with BOLD, you’re not in this alone.

Our Risk & Compliance Manager and our Partner Experience Managers (PXMs and SPMs) are available to assist partners and their merchants with surcharge compliance. We can:

• Review signage and disclosures
• Assist with acquirer notifications
• Provide clarification on confusing rules
• Support merchants through appeals or corrections

If you or your merchant received a surcharge violation, reach out to your dedicated contact for personalized help.

Conclusion

Visa’s surcharge crackdown is here, and the stakes are high. As a reseller, now is the time to get informed, be proactive, and support your merchants in maintaining compliance. With the right education and partner support, you can help protect your portfolio and avoid costly penalties.

For more resources or assistance, reach out to the BOLD Risk & Compliance Team today.

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In recent years, local payment methods (LPMs) have experienced substantial growth, becoming critical in the global e-commerce landscape. 

What Are Local Payment Methods?

Local payment methods (LPMs) are payment options tailored to consumers’ preferences and cultural practices in specific regions of the world. Examples include digital wallets and transfer apps like Zelle in the U.S., Alipay in China, and iDEAL in the Netherlands. By aligning with regional consumer expectations, businesses offering LPMs typically see improved conversion rates and greater customer loyalty. 

The Rise of Local Payment Methods

Consumer demand for localized payment solutions is rapidly growing, significantly influencing purchasing behaviors worldwide. Offering familiar and trusted payment options can greatly increase conversions and customer satisfaction, reducing friction at checkout. Roughly 13% of consumers abandon their shopping carts due to the lack of preferred payment methods, emphasizing the necessity for businesses to incorporate LPMs.

Why Local Payment Methods Matter to Your Business

1. Enhanced Customer Experience: Offering localized payment solutions aligns with customer expectations, creating an easier, more intuitive checkout process. Addressing this need can significantly reduce cart abandonment rates, directly improving sales and customer retention.
2. Global Market Expansion: Businesses leveraging local payment methods can effectively enter and thrive in new global markets. These payment solutions facilitate smoother transactions, helping companies gain trust and acceptance from local customers enabling stronger international growth.
3. Improved Cash Flow and Efficiency: LPMs, such as digital wallets and real-time payments, offer merchants faster access to funds. This speed enhances cash flow, allowing businesses to reinvest quickly and maintain operational efficiency.

Conclusion

Local payment methods represent a significant opportunity for businesses to drive growth, enhance customer experiences, and enter new markets effectively. Companies that integrate these methods, backed by regulatory and consumer support, are more likely to succeed in a competitive global market.

Successfully integrating LPMs involves selecting payment providers that offer transparent pricing, strong security measures, and continual technology updates. Ensuring your payment partner stays ahead of regional trends and consumer preferences will position your business advantageously in a competitive marketplace.

References:

• Baymard Institute. (2024). Cart Abandonment Rate Statistics. https://baymard.com/lists/cart-abandonment-rate
• EY Parthenon. (2025). Key 2025 Payments Trends.
• Checkout.com. (2024). An Introduction to Local Payment Methods. https://www.checkout.com/blog/an-introduction-to-local-payment-methods

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