Audience: Investors & Strategic Partners
Use case: Multi-channel fund acquisition (card-present, card-not-present, Direct Debit,
ChinaPayments) with end-of-day settlement and disbursement.
Customer: Anonymized APAC Marketplace (real Novatti client; details anonymized for commercial sensitivity)
Executive Summary
Novatti’s Payments Acquiring platform enables merchants to accept payments across card-present (CP), card-not-present (CNP), Direct Debit, and ChinaPayments rails under a single, unified operating model.
For our anonymized APAC Marketplace client (“the Marketplace”), Novatti delivered a single integration and single settlement experience with enterprise-grade risk controls engineered for higher-risk profiles. The result: higher approval rates, faster funds availability, and materially lower fraud/chargeback losses, all while improving the end-customer checkout experience.
Highlights
- +4.8 p.p. authorization uplift (CNP credit cards) after 3DS optimization & routing −37% chargeback ratio (basis points) within 90 days.
- T+0/T+1 configurable settlement with automated split-payouts to sub
merchants <120 ms median risk-decision latency at checkout ( p95 < 230 ms) 99.98% platform availability (rolling 12 months). - One contract, one reconciliation across CP, CNP, Direct Debit, ChinaPayments.
Customer Challenge
The Marketplace operates both online and in-person sales with heterogeneous risk levels (digital goods, on-site services). Pre-Novatti, they managed multiple acquirers, fragmented fraud tooling, and siloed settlement schedules with creating reconciliation drag, higher chargeback exposure, and inconsistent checkout UX across channels.
Main points
- Fragmented integrations and reporting across payment methods
- Lower CNP approval rates and friction from legacy 3DS flows
- Exposure to fraud rings and account-takeover attempts at peak demand
- Manual EOD reconciliation and payouts to 400+ sub-merchants
Novatti Solution
Novatti deployed its multi-channel fund acquisition stack, unifying CP terminals, CNP gateways, Direct Debit initiation, and ChinaPayments wallets under one orchestration layer with built-in risk & compliance controls.
Key capabilities
- Unified Acceptance: CP (EMV/contactless), CNP (hosted fields, HPP, APIs), Direct Debit (bank), and ChinaPayments (e.g., Alipay/WeChat Pay) managed under one contract and a single dashboard.
- Intelligent Routing & 3DS: Adaptive 3DS (v2.x), BIN-level routing, merchant risk tiering, and scheme-specific optimizations designed to improve authorization rates.
- Risk & Fraud: Advanced protection using device fingerprinting, behavioral analytics, velocity checks, negative lists, ML-based risk scoring, and chargeback management tailored for high-risk merchants.
- Settlement & Disbursement: End-of-day clearing with configurable settlement calendars, split payouts to sub-merchants, and automated reconciliation statements.
- Compliance: PCI DSS scope minimization through tokenization and hosted inputs, AML/CTF screening, structured dispute workflows, and audit-grade logging.
Multi-Channel Payment Acceptance (Architecture Diagram)
- What This Enables:
- One integration for all acceptance types
- Fast, consistent risk decisions without UX drag
- Resilient scheme and bank connectivity with smart retries
- A single reconciliation stream and statement generation
- Checkout & Risk Experience:
- Low-friction CNP: with hosted inputs and tokenization; adaptive 3DS only when risk warrants
- High-assurance CP: with EMV enforcement, on-device PIN, offline fallback, and end-to-end encryption
- Direct Debit: with mandate capture, verification, and bank response normalization
- China payments: via QR or native wallet flows with real-time confirmation and FX disclosure
- Risk Controls (Illustrative):
- Real-time device and behavioral profiling (p95 < 230 ms)
- Merchant-tier rules, velocity thresholds, and BIN/issuer-level tactics
- Consortium and negative-list checks
- Post-authorization monitoring and automated chargeback responses (where applicable) Results (First 6 Months, APAC Marketplace)
| KPI | Baseline | With Novatti Impact | Impact |
|---|---|---|---|
| CNP Approval Rate | 83.1% | 87.9% | +4.8 p.p. uplift |
| CP Approval Rate | 97.2% | 98.1% | +0.9 p.p. |
| Chargeback Rate (bps) | 64 bps | 40 bps | −37% |
| False Positive Declines | 1.9% | 1.1% | −42% |
| Risk Decision Latency (median) | 155 ms | 118 ms | −24% |
| Reconciliation Time | 6–8 hrs / month | < 2 hrs / month | ~70% time saved |
| Disbursement Timing | T+0 / T+1 | T+2 | Faster liquidity |
**Actual client results; metrics shown are rounded and anonymized for confidentiality.
End-of-Day Settlement & Disbursement (Diagram)
Operational notes
- Multiple rails consolidated into one net settlement credit
- Configurable disbursement calendars and split-payments to sub-merchants Automated statements with transaction-level detail
Why It Matters (Investor/Partner Lens)
- Volume & Revenue Expansion: Higher approval rates combined with new tender support (Direct Debit, ChinaPayments) increase processed volume and expand take-rate opportunities.
- Stickier Relationships: A single contract, unified reporting, and risk offload reduce complexity and improve long-term merchant retention.
- Risk-Adjusted Growth: ML-driven controls and dispute workflows enable expansion into higher-risk verticals while maintaining disciplined loss rates.
- Operating Leverage: Centralized orchestration lowers onboarding effort and ongoing support costs across acceptance channels.
Implementation Snapshot
- Go-live: Phased rollout with Card Not Present (CNP) first, followed by Card Present (CP) and alternative wallets; Direct Debit introduced in month two.
- Integration: Single API with hosted components and a secure token vault supporting recurring payments and one-click checkout.
- Risk Calibration: Three-week tuning of rules and thresholds with rolling A/B testing on 3DS step-up strategies.
- Change Management: Finance operations transitioned to a single daily settlement cycle with unified reconciliation and reporting.
Conclusion
Novatti’s multi-channel acquiring platform became a single destination for all payment needs, from in-store card swipes to online bank debits and mobile wallet scans. The headaches of juggling providers and fraud tools were replaced by a unified, secure, and compliant solution.
The Marketplace saw more revenue (higher approvals, more payment options), lower risk (fewer chargebacks, liability offload), and leaner operations (single settlement & reporting).
For investors and partners, this is a concrete example of how Novatti converts product capability into measurable merchant value and scalable platform growth.
