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1. What is Braintree?

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Braintree (a PayPal service) is a payment gateway and processor that lets businesses accept payments online or in apps.
It supports:

• Credit & Debit Cards (Visa, MasterCard, AmEx, etc.)
• PayPal
• Venmo (US only)
• Digital wallets like Apple Pay & Google Pay

Think of it as the bridge between your website/app and the customer’s bank account.

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2. How Does It Work?

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Here’s the simple payment flow:

1. Customer Checkout
   Customer enters payment details (card number, PayPal login, etc.).
2. Braintree Securely Handles the Data

   • Braintree encrypts and tokenizes sensitive card info so your servers never store raw card numbers.
   • This keeps you PCI DSS compliant.

3. Braintree Talks to Card Networks

   • Sends transaction request to Visa/MasterCard/AmEx.
   • Card network checks with the issuing bank (customer’s bank).

4. Bank Approves or Declines

   • If approved → funds are reserved.
   • If declined → customer sees an error.

5. Settlement

   • At the end of the day, approved transactions are settled and money is sent to your bank account (minus fees).

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3. Why Businesses Like Braintree

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• One integration for multiple payment methods.
• Global reach — 130+ currencies.
• Fraud tools (3D Secure, risk filters).
• Recurring billing for subscriptions.
• Detailed reporting.

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4. Key Terms You’ll Hear

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Term	Meaning
Merchant Account	A special bank account to receive card payments. Braintree provides it.
Transaction	A single payment attempt.
Settlement	Final transfer of funds to your bank.
Tokenization	Converting card info into a secure, reusable token.
Descriptor	Text that appears on the customer’s credit card statement.

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5. How Businesses Use Braintree

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For Non-Tech:

1. Sign Up on Braintree.
2. Add Bank Details for payouts.
3. Set Descriptor so customers know what the charge is for.
4. Connect with your eCommerce or invoicing tool (Shopify, WooCommerce, etc.).
5. Start accepting payments.

For Tech:

1. Get API Keys (Merchant ID, Public & Private Keys).
2. Integrate SDK (Java, Node.js, Python, PHP, etc.).
3. Create a Transaction using API or hosted fields.
4. Submit for Settlement after approval.
5. Handle Webhooks for refunds, disputes, and subscription renewals.

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Example (Java):

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javaCopyEditTransactionRequest request = new TransactionRequest()
    .amount(new BigDecimal("50.00"))
    .paymentMethodNonce("fake-valid-nonce")
    .options()
        .submitForSettlement(true)
        .done();

Result<Transaction> result = gateway.transaction().sale(request);

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6. Security & Compliance

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• PCI DSS Level 1 compliant.
• No raw card data touches your servers.
• Built-in fraud prevention tools.
• Option to enable 3D Secure for extra authentication.

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7. Real-Life Example

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Without Braintree:
You’d have to handle card info yourself → huge compliance burden, costly security audits, and direct bank contracts.

With Braintree:
They handle the security, banking compliance, and payment routing so you can just focus on your product.

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8. Final Tips

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• Set a clear descriptor (e.g., EFORM2290*FilingFee) so customers recognize the charge.
• Test in Sandbox before going live.
• Use Webhooks to automate updates in your app after payments.

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