Credit Union Fintech: FlexPay

FlexPay financial technology CU2.0

FlexPay is an AI-driven decline salvage platform. It uses advanced machine learning models to intelligently determine the best way to recover declined transactions. Currently, the platform recovers an average of 30–50% of all declined transactions.

What FlexPay noticed what that payment processing got problematic in transactions where the card isn’t present. These declined payments ended up costing many online vendors 15%, 23%, or sometimes more than 30% of their income.

To combat these high decline rates, FlexPay developed an enhanced payment gateway to process card not present transactions. By leveraging machine learning, they were able to improve approval ratios, lower transaction fees, and reduce chargebacks.


FlexPay Background

Before FlexPay was FlexPay, they were online merchants. They were selling subscription products directly to consumers, and they knew that selling online came with inbuilt risks and costs. Their chargeback rates were through the roof, so they decided to take care of the problem themselves.

They also had a deep and long history with both acquiring and card-issuing banks. As a result, they understand the systems that control the transaction approval processes within issuers for CNP transactions, known as a “risk decline system.”


Top 3 Problems Solved

  1. Payment processing
  2. Decline salvage
  3. Costs associated with online and subscription businesses


FlexPay Founder: Darryl Hicks

Darryl has been active as a successful serial entrepreneur and technology expert for more than 20 years. A pioneer in Card Not Present sales, Darryl has extensive experience in building and managing technologically complex online and offline Direct Marketing businesses. Darryl is currently the CEO of, a new transaction processing gateway that leverages machine learning to reduce credit card declines, as well as performing transaction cost and risk arbitrage. FlexPay was born out of his necessity to optimize his own significant volume of credit card processing within his Marketing and e-commerce businesses, but is now available to solve similar problems for the public.

Darryl has founded or co-founded several successful B2C and B2B businesses in the past, servicing millions of consumer customers across 4 continents, successfully exiting from two of the larger companies (2006, 2011). He has also served on the boards of multiple early stage companies, holds technology patents, and serves as an active advisor to many e-commerce and Direct Marketing entrepreneurs.


FlexPay go-to Market Strategy:

Credit unions and community banks.


CU2.0 Sponsor = Yes

  • Segment: Payment processing and decline salvage
  • Demographic: card issuers and online merchants
  • Impact on Member Growth: low
  • Impact on Interest Margin: low
  • Impact on Non-Interest Income: high
  • Impact on CU Branch: medium
  • Expense Reduction: low