Credit Card Processing in Dynamics 365 Without the Retail Module

In this post, we’ll explain how to process credit card payments in Dynamics 365 Finance & Operations without using the Retail (Commerce) module.

This functionality is not well documented in Microsoft’s official materials, so the goal of this guide is to clarify how it works and how it can be configured and used in real projects.

First things first — you must have a payment connector developed using the Dynamics 365 Payment SDK.

In this scenario, we use Stripe as an example to demonstrate that any payment connector built with the Payment SDK (such as Adyen, Braintree, or Authorize.Net) can be integrated and used in the same way.

Configuration

1. Payment services configuration

   
   

   Go to Accounts receivable > Payment setup > Payment services.

   
   

   Create a new record and pick the connector(in our case, StripeConnector).

   

   
   

   Mark the configuration as Default processor for new credit cards.

   

This ensures that newly created credit cards will automatically use this payment connector.

2. Accounts Receivable Parameters

   Go to Accounts receivable > Setup > Accounts receivable parameters and configure the following:

   
   

   2.1. Enable Credit card authorization

   
   

   2.2. Specify Number of days before expiration

For simplicity, you can enter 30 days. In reality, expiration and reauthorization rules can be more complex and depend on both business requirements and the payment provider. These rules will be covered in a future blog post.

2.3. Specify the default ledger account for credit card posting

These settings are mandatory for credit card authorization and financial posting.

3. Terms of payment

Create a new Terms of payment record:

Navigate to Accounts receivable > Payment setup > Terms of payment

Create new record and set Payment type = Credit card

This terms of payment record will be selected later on the sales order.

Payment Processing

1. Credit Card Tokenization

   
   

   Next, generate a credit card token for the customer.

PCI compliance note: Only the card token is stored in Dynamics 365. No sensitive card data is persisted in the system.

Steps:

1.1. Go to All customers

1.2. Select a customer record

1.3. Click Credit cards > New record

A Stripe iframe will be displayed, allowing secure card entry and tokenization.

1.4. Enter a test credit card

1.5 Click Submit

Once the token is generated, the card becomes available for use during sales order processing.

2. Sales Order Processing

2.1. Create a new Sales order

2.2. Switch to Header view

2.3. Open the Prices and discounts FastTab

2.4. Select the Terms of payment created earlier (Card)

2.5. Select the credit card token to be used (for example, Mastercard)

3. Payment Authorization

After selecting the credit card:

Manually initiate pre-authorization

Click Authorize

If the authorization is successful, you can review the details under Authorization history.

When the sales order is invoiced, the payment will be automatically captured in Stripe.

Authorization, Capture, and Refund Triggers

Pre-authorization triggers

Pre-authorization can be triggered in the following ways:

• Manual authorization (button click)

• Generate picking list

• Generate packing slip

• Direct invoicing (for service items)

Capture triggers

• Sales order invoicing

Refund triggers

• Posting a credit note invoice

Limitations

• No upfront capture

• No automatic reauthorization batch job

Summary

With a Payment SDK–based connector, Dynamics 365 Finance & Operations can process credit card payments without relying on the Retail module.

This approach supports:

• PCI-compliant card tokenization

• Standard sales order processing without customizations

• Flexible authorization and capture flows

In upcoming posts, we’ll cover:

• Reauthorization strategies

• Expiration handling

Stay tuned.

Stay tuned.