5 Takeaways from MAG San Antonio: What Merchants Must Solve in 2025

The recent MAG Payments Conference 2025, held from September 8–11 at the J.W. Marriott San Antonio Hill Country, brought together over 1,000 payments professionals to discuss the evolving landscape of merchant payments (Vendelux). As merchants navigate the complexities of 2025, several key challenges and solutions emerged from the conference discussions.

1. Revenue Leakages: A Silent Profit Killer

Merchants are increasingly aware of the subtle yet significant impact of revenue leakages. These leakages often result from manual reconciliation errors, delayed settlements, and discrepancies between payment processors and internal systems. The complexity of managing multiple payment channels and currencies exacerbates the issue, leading to potential revenue losses.

To combat this, experts emphasize the adoption of automated reconciliation tools that can swiftly identify and rectify discrepancies, ensuring that every transaction is accounted for accurately.

2. High Payment Fees: A Growing Concern

High transaction fees remain a primary concern for merchants. A survey revealed that 72% of businesses find high transaction fees either somewhat or extremely challenging, affecting cash flow and margin optimization across all segments (The Payments Association). These fees often arise from suboptimal payment routing, outdated pricing models, and lack of transparency from payment service providers.

Merchants are encouraged to evaluate their payment processors, negotiate better terms, and consider alternative payment methods to reduce costs. Implementing multi-acquirer strategies and leveraging payment orchestration platforms can also help in optimizing transaction fees.

3. The Rising Need for AI in Payment Solutions

Artificial Intelligence (AI) is increasingly being recognized as a pivotal tool in addressing payment challenges. AI can streamline payment analytics and reconciliation, cut costs, close books faster, and provide smarter financial insights (merchantriskcouncil.org). By integrating AI into payment systems, merchants can automate routine tasks, detect anomalies in real-time, and make data-driven decisions that enhance operational efficiency.

The growing complexity of global payments means that finance leaders must turn AI from a risk into a competitive advantage by unifying data across providers and currencies.

4. Fraud Prevention: Staying Ahead of Sophisticated Threats

Fraud prevention remains a top priority for merchants. The rise of AI-driven scams, deepfakes, and synthetic identities poses significant risks to businesses. In 2024 alone, businesses lost $8.9 billion to chargebacks, a figure projected to rise as fraud tactics become more sophisticated (Finextra Research).

To mitigate these risks, merchants are advised to implement advanced fraud detection systems that utilize AI and machine learning to identify and prevent fraudulent activities. Regular training and awareness programs for staff can also play a crucial role in combating fraud.

5. Customer Experience: The Importance of Seamless Transactions

In the competitive landscape of 2025, providing a seamless and secure payment experience is crucial for customer retention. Delayed or failed transactions can lead to customer dissatisfaction and loss of business. Merchants are encouraged to invest in technologies that ensure fast, reliable, and secure payment processing.

AI can also enhance customer experience by personalizing payment options, offering real-time support, and providing transparent transaction histories.

Conclusion

The insights from the MAG Payments Conference 2025 underscore the importance of addressing revenue leakages, reducing high payment fees, and leveraging AI to enhance payment solutions. By adopting automated reconciliation tools, negotiating better payment terms, implementing AI-driven fraud prevention systems, and focusing on seamless customer experiences, merchants can navigate the challenges of 2025 and position themselves for sustainable growth.

For more information on optimizing payment solutions, visit Optimus Fintech.