Exclusive to the Pax2pay Platform
Pax2pay’s newly released Merchant Locking feature gives finance teams full control over where virtual cards can be used. This functionality allows UK customers using the Pax2pay license to restrict card usage to a specific, pre-approved merchant.
By locking a card to a designated supplier, such as an airline, cruise line, or hotel, payments are only authorised at the approved merchant. All other transactions are automatically declined, helping businesses strengthen security, prevent misuse, and reduce reconciliation friction.
This feature is supported on all cards issued via Pax2pay.
Why Merchant Locking Matters
Merchant Locking addresses common challenges faced by businesses that manage a high volume of supplier or third-party payments. Whether you’re in travel, procurement, or financial operations, this feature delivers value by:
- Preventing unauthorised spend and fraud
- Enforcing strict payment controls without manual oversight
- Ensuring cards are only used as intended
- Minimising reconciliation errors due to merchant name inconsistencies
- Supporting more secure supplier management practices
How Merchant Locking Works
Merchant Locking is available at the point of card issuance and follows a structured workflow to ensure clarity and compliance throughout the process.
Step 1: OTA Configuration
At the start of your onboarding, you choose which merchants you want the ability to lock cards to. These are typically your key suppliers or OTAs.
Step 2: Merchant Listing
Pax2pay generates a list of accepted merchants based on your configuration. These merchants appear within your payment system for card locking.
Step 3: Locking Confirmation
We verify that all selected merchants can be locked successfully. This ensures compatibility and removes any ambiguity around where cards can be used.
Step 4: Locking Activation
When issuing a virtual card, you will have the option to activate the merchant lock by selecting a merchant from your approved list. This is the point at which the restriction becomes active.
Step 5: Payment Processing
Once the card is locked, transactions are only authorised at the selected merchant. Any attempt to use the card elsewhere will be automatically declined.
Step 6: Merchant Matching
Our system intelligently recognises variations in merchant names. For example, “RYANAIR”, “Ryanair”, and “Ryan Air” are treated as a match. This ensures consistent payment behaviour, even when merchant naming varies between systems.
Who Can Use Merchant Locking?
This feature is available exclusively to businesses based in the United Kingdom operating under the Pax2pay license. It supports card issuance and control for Visa and Diners Club virtual cards.
Frequently Asked Questions
Can I lock a card to more than one merchant?
No. Each card can be locked to a single merchant from your approved list.
What happens if someone tries to use the card at an unapproved merchant?
The transaction will be declined automatically.
Can I change the locked merchant after the card is issued?
No. Merchant selection must be done at the time of card creation. To change the merchant, a new card must be issued.
How does the system handle variations in merchant names?
Pax2pay uses intelligent matching to recognise name variations. This avoids common errors during reconciliation or processing.