Payment Flow Diagrams

Visual reference for how Hedge processes payments through CoinFlow and Plaid, including chargeback protection and settlement flows.

ACH Payment Flow

End-to-end bank transfer using Plaid for bank verification and CoinFlow for ACH processing.

ACH Bank Transfer — End to End

Consumer initiates payment via Hedge white-label checkout

Consumer
Initiates payment
API request
Hedge API
Session + validation
Bank link initiated
Plaid
Bank account linking
Verified via Plaid
Bank Verified
Account + routing
ACH initiated
CoinFlow
ACH checkout
Batch submitted
ACH Network
Nacha processing
T+1 to T+3
Settlement
USDC or USD
Instant USDC
Merchant
Funds received
Processing Time
1-3 Business Days
Same-day ACH available for premium
Fee
~1% (min $1)
Lowest cost payment method
Settlement
USDC or USD
Merchant chooses settlement type

Card Payment + Chargeback Protection

CoinFlow provides 100% chargeback protection through AI fraud detection, 3D Secure, and device fingerprinting.

Card Checkout with 100% Chargeback Protection

Every card transaction passes through CoinFlow's multi-layer fraud engine

Cardholder
Visa / MC / Amex
Card details
Hedge Checkout
White-label UI
Fraud screening
Device Fingerprint
Behavioral analysis
Risk signals
AI Risk Engine
Real-time scoring
Auth required
3D Secure
Cardholder auth
Verified
CoinFlow
Card processing
Authorization
Approved
Funds captured
Capture
Settled
T+1 to T+3

Chargeback Lifecycle — Hedge is Protected

Transaction
Card payment
Submit
CoinFlow Screening
AI + 3DS + Fingerprint
Pass
Approved
Protected transaction
CoinFlow absorbs chargebacks
Guaranteed
100% covered
Dispute filed
Chargeback Filed
By cardholder
CoinFlow Covers
Merchant keeps funds
Flagged
Declined
High risk blocked
Zero chargeback liability. CoinFlow absorbs 100% of chargebacks on approved transactions. Merchants receive funds regardless of cardholder disputes. This is a key differentiator vs. traditional payment processors and open banking providers like Trustly.

Round-Up (SideBet) Micro-Debit Flow

Automated round-up collection from sportsbook bets, powered by merchant-initiated ACH debits via CoinFlow.

SideBet Round-Up Flow

Sportsbook bet triggers automatic round-up collection

Bettor
Places $43 bet
Bet placed
Sportsbook
Bet event webhook
Webhook event
Hedge Engine
Calculates round-up
Strategy applied
Round-Up: $7
$43 rounded to $50
Debit authorized
Plaid Auth
Pre-linked bank
ACH pull
CoinFlow ACH
Merchant-initiated debit
Settled
User Account
$7 credited
Accumulated
Savings Pool
Accumulates over time
Nearest Dollar
$7.00
$43 bet
Nearest $5
$2.00
$43 bet
Percentage (10%)
$4.30
$43 bet
Fixed Amount
$5.00
$43 bet

Full Architecture Overview

How Hedge, CoinFlow, and Plaid work together to provide complete payment infrastructure.

Hedge Payments Architecture

White-label payment infrastructure powered by CoinFlow + Plaid

End User
Consumer / Bettor
Branded experience
Hedge Platform
API + White-label UI
Orchestration layer
Plaid
Bank linking + KYC
CoinFlow
Payment processing
Fraud Engine
AI + 3DS + Fingerprint
Payment rails
Card Networks
Visa / MC / Amex
ACH / Nacha
Bank transfers
Blockchain
USDC settlement
Settlement
Merchant
Receives funds
Trustly comparison: Like Trustly, Hedge enables direct bank-to-merchant payments. Unlike Trustly, Hedge adds CoinFlow's 100% chargeback guarantee, multi-rail settlement (USDC, USD, card), and Plaid-powered bank verification purpose-built for the US market.

Open Banking Comparison

How Hedge compares to traditional open banking providers.

CapabilityHedge + CoinFlowTrustly
Bank-to-merchant ACH
100% Chargeback Protection
Card Payments (Visa/MC/Amex)
Apple Pay / Google Pay
Crypto Settlement (USDC)
Open Banking (EU PSD2)Roadmap
US Bank Linking (Plaid)Partial
AI Fraud DetectionPartial
3D SecureN/A
White-label Checkout
Recurring / Merchant-Initiated
Real-time Settlement (USDC)
Multi-chain Support
170+ Countries SupportedEU-focused
iGaming / Sportsbook Focus
PCI DSS Level 1
SOC 2 Type II

Webhook Event Lifecycle

Real-time status updates as payments move through the pipeline.

Payment Webhook States

Created
payment.created
Processing
payment.processing
Auth + capture
Completed
payment.completed
Settlement
Settled
payment.settled
Declined
Failed
payment.failed
Dispute
Chargeback
payment.chargeback
CoinFlow Covers
No merchant loss
Example: payment.completed webhookjson
{
  #98C379]">"event": "payment.completed",
  #98C379]">"data": {
    #98C379]">"paymentId": "pay_7xK2mN9pQ",
    #98C379]">"amount": 5000,
    #98C379]">"currency": "USD",
    #98C379]">"method": "ach",
    #98C379]">"status": "completed",
    #98C379]">"settlementType": "USDC",
    #98C379]">"chargebackProtected": true,
    #98C379]">"plaidAccountId": "acc_Plaid_xxxxx",
    #98C379]">"webhookInfo": {
      #98C379]">"userId": "user_abc123",
      #98C379]">"orderId": "order_456"
    },
    #98C379]">"timestamps": {
      #98C379]">"created": "2025-11-18T10:30:00Z",
      #98C379]">"processing": "2025-11-18T10:30:02Z",
      #98C379]">"completed": "2025-11-18T10:30:45Z"
    }
  }
}

Security & Compliance

Enterprise-grade security across the full payment stack.

PCI DSS Level 1

Highest level of card data security. CoinFlow handles all PCI scope — Hedge merchants never touch raw card numbers.

SOC 2 Type II

Independently audited security controls covering availability, confidentiality, and processing integrity.

100% Chargeback Protection

CoinFlow absorbs all chargebacks on approved transactions. AI fraud scoring, 3D Secure, device fingerprinting, and behavioral analysis.

KYC / AML Compliance

Identity verification, OFAC sanctions screening, FinCEN registration, and anti-money laundering monitoring — all handled by CoinFlow.

Data Encryption

TLS 1.3 for data in transit, AES-256 for data at rest, HSM for key management. GDPR and CCPA compliant.

Plaid Bank Verification

Instant bank account verification via Plaid. No micro-deposits required. Supports 12,000+ financial institutions in the US.