In 2025, payments should be faster, easier, and more secure than ever. But for many consumers, swiping or tapping a card still leads to unnecessary delays, fraud risks, and frustrating declines. Despite technological advancements, the underlying infrastructure of traditional payments remains largely unchanged, relying on layers of intermediaries, outdated fraud detection methods, and data-sharing practices that put customer information at risk.

The intricate web behind every swipe

When a customer makes a purchase with a credit or debit card, a complex process takes place behind the scenes. The payment terminal captures the card details and transmits them to the merchant’s payment processor (also known as the “merchant acquirer”). From there, the information moves through the card network, which routes it to the issuing bank for authorization. The bank then assesses the transaction for fraud risks before approving or declining the payment. The authorization is sent back through the network, and the payment—if approved—is processed. However, final settlement of the paid funds can take days, during which banks and payment processors take their fees. And for months after the swipe, merchants remain at risk of chargebacks.

This process might appear seamless, but it comes with significant pain points. Fraud detection systems often mistakenly flag legitimate transactions, leading to false declines that frustrate customers. Every card transaction involves sharing sensitive financial data, which can be stolen through skimming devices, data breaches, or compromised payment systems. In fact, in 2024 alone, cases of credit card fraud increased by 7% over the previous year, underscoring the vulnerabilities of traditional payments. 

Additionally, disputes and chargebacks create a complicated process for customers and merchants, leading to refund delays and financial losses. A single chargeback can cost more than double the original transaction. When you factor in fees, lost merchandise, and operational overhead, a $100 dispute can easily cost a business $250. Settlement times remain slow, with merchants on average waiting a minimum of 1–3 days for funds to arrive. Transaction fees imposed by banks and card networks typically range from 1.5% to 3.5% per transaction, increasing overall costs that are passed down to consumers.

A better way to pay

With so many inefficiencies in the current system, digital assets and payment solutions like Flexa offer an alternative that eliminates many of these pain points. Instead of relying on multiple intermediaries, Flexa facilitates real-time payments using digital assets that are completely resistant to fraud. Transactions are authorized instantly, ensuring that if a customer has sufficient funds, the payment goes through without the risk of false declines. 

Unlike traditional payment methods, Flexa does not rely on card numbers or bank details, preventing fraudsters from skimming sensitive data. Every Flexa payment uses a transaction signature or is processed at point-of-sale with a single-use authorization code, making security breaches virtually impossible.

Chargebacks, a persistent issue in traditional payments, are eliminated with Flexa’s guaranteed settlement process. Because digital asset transactions on Flexa are push payments, merchants' funds are guaranteed. Additionally, transactions settle instantly, reducing delays and operational inefficiencies. 

Without the need for banks and card networks to process transactions, fees are significantly lower, benefiting both merchants and consumers. Customers also gain greater control and privacy over their financial data, as digital asset payments do not involve banks tracking and selling transaction histories to third parties.

Opening up the global economy

Another advantage of Flexa’s approach is its global usability. Unlike credit cards, which impose foreign transaction fees and cross-border restrictions, digital asset payments can be made anywhere in the world without extra costs. Whether shopping online or traveling abroad, consumers can enjoy a seamless and cost-effective payment experience.

Making payments simpler for everyone

For years, consumers have accepted the inefficiencies of traditional payments as an unavoidable reality. But with the rise of digital assets and networks like Flexa, a more secure, private, and frictionless alternative is here. Digital assets offer a powerful alternative to conventional payment systems, allowing users to maintain financial autonomy in a world increasingly demanding transparency. As the adoption of blockchain-based payments grows, platforms like Flexa are proving that privacy and security can coexist with the speed and efficiency of digital transactions.

Ready to discover all the ways Flexa can help you support digital assets? Get started today.