Airwallex Payments 101: A guide to global payment processing

Key takeaways

• 77% of online shoppers are likely to abandon their cart if they do not see their preferred payment method at checkout.¹

• Airwallex Payments connects payment acceptance with local banking networks to reduce international transaction costs. Standard payment platforms like Stripe charge flat transaction rates that scale poorly, and Adyen imposes high monthly invoice minimums.² 

• Airwallex lets you collect payments in 130+ currencies via 160+ payment methods, and settle like-for-like in 20+ currencies 

Moving money across borders using traditional banking can erode profits with high transactional and currency conversion costs. Finance leaders at globally scaling companies are implementing more modern payment systems like Airwallex. 

This guide explores the mechanics of Airwallex Payments and demonstrates how a unified financial stack helps businesses capture more international sales.³

What is Airwallex Payments?

Airwallex Payments is a suite of tools that help global businesses and merchants accept, hold, and deploy funds both domestically and internationally to unlock growth.⁴ Traditional merchant acquirers automatically convert sales into a single home currency, but Airwallex connects payment collection with multi-currency business accounts to let businesses manage the entire transaction lifecycle within one unified treasury balance.

Airwallex bypasses the intermediary financial institutions that typically slow down clearing cycles. Its wide network of fintech and finance partnerships enables businesses to accept payments in more than 130 countries and 160 local payment methods without needing to set up local legal entities in every market.

Payment gateways vs. payment processors

To create an online checkout experience, it is important to understand payment gateways vs payment processors. A payment gateway is the secure interface that encrypts and transmits raw customer card data directly to the payment network. A payment processor handles the background logistics, routing authorizations through the card schemes to the issuing bank and settling the funds.

Airwallex acts as both the gateway and the backend processor, avoiding the friction involved in working with multiple third-party suppliers and giving you better data visibility, faster settlement times, and lower merchant fees.

5 ways to accept payments with Airwallex

Merchants need diverse transaction pathways to match different customer preferences and business workflows. Airwallex provides five flexible acceptance methods that connect directly to your multi-currency wallet so you can manage all global receivables from a single dashboard.

Online payments

Build conversion-optimized checkouts with Airwallex Checkout, which surfaces digital wallet options like Apple Pay and Google Pay and reduces form fields. You can install prebuilt Airwallex Payment Plugins on platforms like Shopify to show localized prices and accept preferred local payment methods, building shopper trust and breaking into new geographical regions.   

Airwallex assesses risk in the background to maximize transaction acceptance rates and prevent chargebacks. 3D Secure (3DS) authentication adjusts levels of security based on risk score: low-risk card purchases add no customer friction, while high-risk transactions require extra security checks. 

High-growth direct-to-consumer (D2C) brands can use Airwallex to reach new customers globally, such as a US-based fashion retailer offering Klarna to European buyers and localized digital wallets in Singapore.

Payment links

For transactions that happen off-site, merchants can use Airwallex Payment Links. Finance teams and non-technical teams can quickly generate secure single-use or reusable URLs directly inside the Airwallex WebApp without writing code. Customers open these links to pay securely using local cards, digital wallets, or regional bank transfer networks, updating the dashboard instantly upon settlement.

Payment links are helpful when taking payments for wholesale orders, service contracts, or valuable physical goods as they bypass traditional invoicing and can be used to capture sales on social media platforms. B2B service firms and international consulting agencies, for example, can send custom payment links that allow clients abroad to instantly settle their invoices in their local currency. 

Invoice integrations

Using integrations with major accounting platforms like Xero, QuickBooks, and NetSuite, Airwallex lets you embed payment buttons directly into your digital invoices, and as soon as a payment is made, the transaction is instantly reconciled with your general ledger (GL). Your finance team will be able to track unpaid invoices and monitor cash flow more accurately. 

Automated bookkeeping is especially beneficial to mid-market and software companies that process a large volume of invoices, where manual accounting reviews can be a huge expense. 

Subscriptions

Airwallex Subscription Management lets you launch and manage pricing models, including usage-based plans and free trials. When recurring renewal payments fail, as in the case of temporary network issues, automated retries are scheduled to prevent subscriber churn.

SaaS platforms or companies with an international user base can avoid unnecessary monthly currency conversions by charging customers in their local currency and holding payments in their Airwallex Wallet balance.  

POS payments (coming soon to the US)

Airwallex POS Payments solve the current challenge brick-and-mortar operations have of using multiple hardware and software vendors that are incompatible. Airwallex consolidates physical retail and eCommerce payment processing in one place, so you can track global store performance, card terminal management, and analytics across channels. 

This omnichannel structure was built with hybrid retail and hospitality brands in mind, which collect payments both on- and offline. For example, a hotel can manage its online room bookings and in-person restaurant sales from the same dashboard.  

How Airwallex Payments works

To handle international transactions efficiently, a payment processor should coordinate across multiple card networks and financial institutions. Airwallex uses its own proprietary network to bypass traditional correspondent banks and intermediary players to speed up merchant payment processing times and keep transactional fees highly competitive.

How Airwallex tracks a payment from start to finish

Every transaction is tracked under a single record that stays open until the payment succeeds or is explicitly canceled.

1. When a customer clicks "Pay," Airwallex immediately sends an authorization request to their card network and issuing bank.

2. The bank checks the transaction against its fraud rules and either approves or declines it, typically in under two seconds.

3. The full transaction record is stored, so your team can reference it later for partial refunds, chargebacks, or reconciliation.

4. Developers can use Airwallex API endpoints and webhooks, aka automated notifications that fire when a transaction status changes, to keep your systems in sync without manual monitoring. 

What happens when a payment fails

If a card transaction gets declined, the overarching PaymentIntent remains open rather than canceling the order. This allows the checkout interface to prompt the customer to retry with another card or a local payment method. Airwallex passes the raw issuer response codes directly back to the merchant's portal.

These codes identify issues like insufficient funds or invalid card numbers, which guide developers to resolve the error. The customer receives instructions to check the card number or use an alternative payment option, preventing unnecessary abandonments. 

How funds get authorized and settled

Following authorization, cleared funds are moved into the merchant's Airwallex Wallet. The clearance schedule depends on the payment method used, the business days of the network, and the merchant’s reserve plan. Airwallex runs a daily settlement batch at a time set according to the timezone, and finance teams can reconcile settlements against these totals in real time.

By default, we use net settlement to simplify accounting for global businesses. This means processing fees, refunds, disputes, and reserve holds are deducted before the net revenue settles. Gross settlement is also available, where the full transaction amount lands in the Wallet and fees are invoiced separately.

Key features of the Airwallex Payment Gateway

Choosing the right payment infrastructure requires assessing currency flexibility and treasury integration. The Airwallex gateway goes beyond standard merchant acquiring by combining payment acceptance with local banking networks to help businesses scale internationally.

Like-for-like settlement to protect margins

Most traditional payment systems force merchants to convert foreign card sales into their home currency. To protect operating margins, Airwallex supports like-for-like settlement in over 20 principal currencies. This allows USD payments to settle directly into your USD balance, while you pay foreign suppliers without double conversion fees or daily exchange rate swings. 

Unified financial stack

Unlike external bank transfers that take days to clear, once funds settle in your Airwallex Wallet, they are immediately available for use. You can instantly fund operational expenses like corporate cards, pay international contractors, or settle bills, unifying global receivables with outbound spending.

Supported payment methods

A localized checkout experience reduces shopping cart abandonment as it surfaces customized options for customers, including global card networks, digital wallets, and local direct debit options. It also provides access to regional payment brands like Klarna, letting merchants display preferred payment options to international shoppers.

Offering popular local payment methods helps build trust in new markets. When shoppers see their preferred local payment option, including bank transfer apps and digital wallets, they are more likely to complete their order. 

No-code to full API integration options

Airwallex provides multiple paths to customize setup, depending on your technical resources. Non-technical teams can deploy hosted checkout pages or share secure payment links. Custom platforms can use and construct checkouts with developer-customizable checkout components or integrate directly with the core REST API for complete control.

Prebuilt plugins let you sync online retail payments with your store’s backend, and your developers can test your checkout flows using the Airwallex sandbox environment and API guides. 

Airwallex Payments fees

Navigating payment costs requires full visibility into transaction pricing models. Many traditional processors hide extra fees, such as PCI compliance charges and account setup fees, in complicated monthly statements. Airwallex eliminates these hidden charges by offering two clear and competitive pricing models.

Blended pricing bundles all transaction costs — interchange fees, scheme fees, and acquirer markup — into a single flat percentage per transaction. IC++ pricing passes the exact card issuer and network fees directly to the merchant, plus a fixed Airwallex markup. 

How to get started with Airwallex Payments

Transitioning to a unified payments platform requires a few steps of setup. Taking a structured approach can help you avoid merchant account holds and ensure smooth collections.

1. Activate payments in your dashboard

Submit business registration records, director identification, and operational details for regulatory review.

1. Configure settlement currencies

Enable matching foreign currency balances to ensure like-for-like settlement and prevent forced conversions.

1. Review your reserve plan

Check your specific reserve rules (funds held back as a buffer against chargebacks), inside the Settings tab.

1. Confirm PCI compliance

Assess your integration method to determine your specific self-assessment compliance requirements and verify card data security.

Frequently asked questions about Airwallex Payments

What does Airwallex do in the case of failed transactions?

Airwallex addresses failed transactions by keeping the PaymentIntent open so customers can retry their payment. Your merchant dashboard will show raw issuer response codes to explain the decline, which developers can use to guide the customer to resolution.

Is Airwallex’s payment gateway secure?

Yes, Airwallex’s payment gateway is secure. It complies with PCI DSS Level 1 certification and SOC 2 Type II validation, which are the highest compliance tiers for payment security and data handling. Airwallex fully encrypts customer data and uses tokenization to obscure card details.  

How long does it take for funds to settle?

It takes one to three business days for funds to settle into your Airwallex Wallet, depending on the origin location, payment method, and reserve rules. Most transactions run through local payment rails and 92% settle on the same day or even instantly.

What's the difference between blended pricing and interchange++?

Airwallex offers both blended and interchange++ pricing to fit your specific mix and volume of transactions. Blended pricing charges a flat transaction fee that bundles all card network and processing costs into one predictable rate. Interchange++ pricing requires you to pay the card issuer and network processing fees, plus a small markup from Airwallex.

Does Airwallex support recurring subscription billing?

Yes, the Airwallex Subscription Billing API lets you set up recurring subscription billing, with customized renewal cycles and automated customer communications. 

How do I accept payments without a website?

You can accept payments without a website by generating secure Payment Links inside the Airwallex WebApp. When the customer clicks the link in an email or on social media, they will be taken to a secure, branded checkout page that accepts their local payment methods.

Sources

1. https://www.pymnts.com/news/payments-innovation/2024/77-percent-of-shoppers-say-no-sale-bye-if-preferred-payment-option-missing

2. https://www.airwallex.com/us/blog/top-payment-processors

3. https://www.airwallex.com/us/payments

4. https://www.airwallex.com/us/blog/the-hidden-cost-of-payment-failures