Also called: Integrated payments
What embedded payments are
Embedded payments put payment acceptance inside an app, website, or business platform. Your customer pays as part of the task they are already doing, such as paying an invoice in an accounting platform or checking out in a retailer’s app, without being sent to a separate payment page.
For you, the key distinction is who offers and manages the payment service. In an embedded setup, the software platform includes payments as part of its product and connects to payment infrastructure behind the scenes. The platform may handle merchant onboarding, transaction reporting, and routing funds, while a payment provider processes the transaction.
The label is not used consistently. Some businesses call an API connection with a separate or hosted checkout “integrated payments,” even when the payment experience is not fully inside the software. Find out whether your customer stays in the platform and which company manages your payment account.
Convenient checkout does not tell you who controls your funds or what the platform takes from each sale.
How the payment flow works
A customer enters payment details in the platform’s checkout or point-of-sale flow. The payment information is sent securely to the payment provider, which requests authorization and then processes the transaction. After processing, the platform records the sale and directs funds to you or to another destination in the platform’s funds flow.
In a marketplace arrangement, for example, a customer pays once, the platform deducts its fee, and the balance is sent to the seller. Other setups route the payment directly to your merchant account. The agreement and account structure determine who holds funds, who controls payout timing, and whether reserves apply.
What it means for your costs
Embedded payments do not have one standard price. Your costs depend on the platform and payment setup. A platform can charge processing fees, a platform fee, payout charges, or a share of transaction revenue. It can also price payments separately from its software subscription, or bundle the charges together.
Your processing costs still include interchange, card network fees, and processor markup. Only the markup is negotiable. If the platform gives you one blended price, you may not see those components separately, which makes it harder to tell whether a higher bill comes from card costs, platform charges, or added services.
Faster checkout is a possible business benefit, but it does not prove that the payment price is competitive. Compare the transaction rate and per-transaction fee with any monthly platform charge, payout fee, chargeback fee, and revenue share. A low advertised processing rate does not show the full cost if other charges sit elsewhere in the pricing schedule.
Where costs and control can get unclear
The platform’s role affects more than checkout. In platform-led arrangements, the platform controls payout timing and reserve policies within the limits of its payment infrastructure. That matters when you need predictable cash flow for payroll, inventory, or rent. Identify the stated payout schedule, reserve terms, and the party responsible for resolving delayed or missing funds.
The same division of responsibility matters for disputes and security. In some structures, the platform carries part of the financial responsibility for chargebacks, while your business still has to provide receipts, proof of delivery, or customer communications. If your platform handles card data, confirm which party manages PCI DSS requirements and what security tasks remain yours.
Your processing statement may not show every platform charge in one place. Match the statement’s transaction and monthly fees against the platform’s pricing schedule, then identify separate payout, software, and revenue-share deductions. If the platform deducts fees before sending your funds, reconcile gross sales, deductions, and net deposits.
What you can actually change
- Map every fee. List the processing rate, per-transaction charge, monthly platform fee, payout charges, and any revenue share. Match each item to the pricing schedule or processing statement.
- Pin down payouts. Find the payout schedule, reserve terms, and rules for delayed or withheld funds. Confirm whether the platform or another provider sends deposits to your business.
- Clarify responsibilities. Get a written breakdown of who handles chargebacks, customer support, and PCI DSS tasks. Confirm what records your staff must provide when a payment is disputed.
Frequently asked questions
What is the difference between embedded and integrated payments?
Embedded payments are offered inside a software platform, with checkout built into the customer’s workflow. Integrated payments can mean that software connects to a payment provider, including through a hosted checkout or redirect. Ask whether customers stay in the platform and who manages your payment account.
Do embedded payments cost more?
There is no standard embedded-payment price. Your total can include processing charges, a platform or monthly fee, payout charges, and a share of transaction revenue. Compare all of those charges, not just the quoted processing rate.
Who controls payouts with embedded payments?
It depends on the account and funds-flow setup. In a platform-led arrangement, the platform controls payout timing and reserve policies within the limits of its payment infrastructure. Look for the payout schedule, reserve terms, and the party responsible for sending your deposits.
Will embedded payments appear on my processing statement?
There is no single statement format for embedded payments. Processing charges might appear on a merchant statement, while platform, software, payout, or revenue-share charges are listed separately or deducted before your deposit. Reconcile gross sales, every deduction, and net deposits.