Payments on Fire™ Episode 268 - Rethinking Payment Optimization Through the Merchant of Record Model, with Rehman Baig, FlexFactor
Jul 2, 2025
Rehman Baig, Chief Product Officer at FlexFactor, dives into innovative strategies for payment optimization with a fresh take on the Merchant of Record model. He discusses how this model can tackle challenges like failed payments and auth rates that often leave merchants stumped. Baig shares insights from his journey through the payments industry, emphasizing the role of AI-driven solutions and real-time decision-making in enhancing transaction efficiency. His perspectives are essential for anyone grappling with improving payment systems and driving success.
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Rehman Baig's Payments Journey
- Rehman Baig shared his personal journey into payments, starting at eBay and PayPal, then Square and beyond.
- His path reflects evolving interest and opportunities around global payments and emerging fintech challenges.
FlexFactor's Decline Recovery Model
- Payment declines remain a significant problem, with 10-15% decline rates for e-commerce merchants.
- FlexFactor scores, purchases, and recovers a portion of declined transactions to optimize revenue and customer flow.
Handling Live and Recurring Payments
- FlexFactor uniquely supports both live customer initiated transactions and recurring payments with fast, confident approval decisions.
- They buy the declined transaction and complete payment on their backend, preserving customer experience.