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Payment Routing

Intelligent payment routing and cascading are useful options for companies looking to optimize and reduce the cost of accepting payments from customers. Smart routing allows you to flexibly manage transactions by directing them to those channels and payment networks that are most likely and fastest to approve them. Payadmit manages and optimizes the flow of transactions through new technologies and the use of artificial intelligence.

How it works

With an e-payments routing directory, the system pre-checks all payment conditions (payment method, card type, amount, currency, countries, etc.) before sending the transaction to the acquiring bank. Algorithms determine the most optimal route for each transaction.

In case the transaction was rejected by one of the payment providers, Payadmit can change the rules in real-time and forward the transaction to another provider during the same payment session with cascading.

Also, smart routing allows to avoid double conversion. Payadmit also offers a percentage split: the system determines the optimal ratio for distributing payments across available merchant accounts.

The benefits of intelligent routing are as follows:

  • Ability to save up to 30% on transaction fees;
  • Up to 40% increase in conversion rates;
  • 15% higher transaction success rates due to auto retries;
  • 20% fewer fraud risks.

If you want to learn more about smart routing and its benefits for your business, contact our consultants, who will be happy to answer any questions.

FAQ

Frequently Asked Questions

What is payment routing?

For online companies and institutions that take payments by collaborating with numerous payment service providers, routing is a vital payment processing technology (PSP). Each transaction is sent to the best suitable PSP or acquirer depending on the chosen criteria. Because of this, it does not apply to businesses that work with a single PSP.

What are the types of payment routing?

There are two types of payment routing: static and dynamic. In the case of static payment routing, the business routes transactions to payment providers through manually set routes. These routes are pre-planned and do not change when any events occur. This means that if one of the routes becomes unavailable, you cannot reconfigure it. Dynamic payment routing allows you to adapt to sudden changes and find the best route in specific conditions. For example, our system can choose the best payment route based on geolocation, amount, card issuer, date and time, etc.

Why does my business need payment routing?

Payment routing has many benefits. First of all, this service increases success rates. Also, payment routing helps to reduce transaction costs and maintain payment process redundancy.

Does payment routing have any drawbacks?

The main disadvantage of payment routing is the complication of all processes associated with the receipt of payment. For this reason, it is worth finding a one-stop solution for payment processing. PayAdmit is just such a solution and a reliable payment gateway for any business.

Are payment gateways regulated?

Yes, payment gateways are regulated. Your processing mechanism should adhere to the minimum security requirements listed below:
- PII DSS Processing payments requires adherence to PCI DSS (Payment Card Industry Data Security Standard).
- Cryptography Standards.
- SSL. Tools for preventing fraud.
Regulated services cover facilities for accounts, carrying out transactions, creating instruments, acquiring services, and standard open banking functions. Payment Service Providers (PSPs) may be subject to fines or legal repercussions if they violate specific rules.

Payment routing definition

A technique called payment routing can help to address the issue of failed transactions in a significant part. Routing establishes the best path for payment by connecting the buyer and the vendor. The conventional mechanism involves several participants. The effectiveness of the entire system is significantly increased by the intelligent automatic distribution of cash flows through a unique gateway. Those required to work with numerous payers at once may particularly benefit from routing. The execution of transactions is streamlined and optimized as a result.

Payment route

Payment route is an example of an inventive mechanism that guards against the majority of unsuccessful transactions. Customers and businesses may check out fast and accept real-time payments without difficulty or annoyance. Furthermore, efficient routing lowers transaction costs, boosts system performance, and minimizes downtime. The sender and recipient are connected by traditional routing, which also makes and accepts payment requests on behalf of clients and recipients.

What is the payment processing method?

Businesses carry out credit card and debit card transactions through payment processing. Payment gateways send data securely so funds from a customer's issuing bank may be moved to a merchant's account. In contrast, processing services speed up card transactions. All of this occurs quickly. The bank that issued the buyer's card receives information from the seller's bank. The data is verified for correctness and the presence of funds in the buyer's account at the buyer's bank. The seller's bank receives a response along with the verification findings. The answer and payment details are sent to the system by the seller's bank.

How long does transaction routing take?

The majority of domestic transfers are handled on the same day. At the same time, most international transactions are finished within a few days (depending on the country). Large sums of money can be transferred within 2–3 days. Although they differ depending on the money transfer operator, restrictions are often substantial. The typical pending period for a credit card transaction is one to five business days. According to Bank of America, debit card pending transactions might take three to five business days to post.

How do payment platforms work?

Payment platform is a complex computer hardware, software, and communication system created to carry out financial transactions utilizing money other than cash. A customer's connection with the payment provider marks the start of the online purchase process. A user may make a payment with only a few clicks owing to the organized and well-coordinated efforts of providers, banks, processing systems, and other ecosystem partners. The transaction execution time spans from a few seconds to several days (in exceptional cases).

What is smart payment routing?

By applying rules in real-time and configuring routing across multiple channels (accounts, currencies, banks), smart routing enables you to manage results and customize potential situations to meet business requirements. Smart routing determines the appropriate path for each transaction on the fly based on user preferences, channel availability, region, card type, currency, and device type.

What is a route transaction?

Route transaction is a crucial processing tool for firms interacting with various payment providers. It allows choosing the best payment gateway for each transaction based on a set of factors. It increases the likelihood that a transaction will succeed.

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All the resources to successfully process payments using the Payadmit platform
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Documentation
All the resources to successfully process payments using the Payadmit platform
PayAdmit Docs
Let’s Talk
Do you want to scale up your business and you need a strong and flexible Commerce platform?
Contact Us
Give Us a Call
Be not afraid! Go after global market share. We'll handle the backend stuff
Skype

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