In today’s world, new payment methods help to significantly speed up the work of transferring money from one account to another. But there are many situations where digital payments take too long or are lost altogether, even though such losses are unnecessary and preventable. That means slowdowns and the possibility of missing out on profits. In this way, smart routing is an effective solution to many problems. The service of smart payment routing offered by Corefy is based on the latest digital technology and therefore works more efficiently.
In the following article, we will tell you what the main advantages of smart routing are and what it is. Such information is especially useful if you really need to take your business to a whole new level.
What is payment smart routing?
This is a technology of digital transaction settlement for online businesses and institutions that accept money by working with PSP. It consists of sending each operation to the most appropriate PSP or acquirer based on selected parameters. This is why it is not applicable to merchants who work with a single PSP.
There are two main ways to route payments. The first is known as the static payment route. It requires manually creating complex schemes. The second is called the dynamic route. It is much more flexible because the rules used to distribute payments are dynamic. This means that they can switch in real-time to adapt to changes.
Moreover, some providers offer intelligent or smart routing. Basically, it’s a solution that uses company transaction data to learn how to predict the best smart route for each individual transaction in realtime (this means that they can switch in realtime to adapt to changes). A transaction smart route solution would be especially useful if:
- Your processing infrastructure includes more than one PSP or acquirer.
- You provide services to customers from different countries and need to support both local and international markets.
- The number of operations processed by your company runs into tens of thousands.
- You are running a high-risk business.
- Your company suffers from low conversion rates and technical failures on the part of the PSP.
How to set up payment routing?
Electronic payments require flexibility and excellent digital skills. Ensuring a stable financial system and thus generating revenue depends on the ability to move money quickly through all the potential obstacles that arise from the time a payment is sent to the time it is received. The problem with these impediments is not just the inability to properly process a payment. Slow or rejected transactions:
- increase the cost of operating the system;
- consume a lot of energy;
- reduce the effectiveness of the sales department.
When an innovative tool like a payment smart route is used, it protects against most failed transactions. Both merchants and consumers can quickly make payments and accept payments in realtime without the hassle and frustration. In addition, smart routing minimizes transaction costs, increases system throughput, and reduces downtime.
The traditional route connects the sender and addressee with each other and requests payments on behalf of clients and receivers. The route channel is rebuilt based on the automatic analysis of multiple data:
- monetary amount;
- date and time;
- bank card data, and more.
Customers are completely oblivious to how exactly the smart route works, where the data is stored, and how it is processed. What matters to them is the speed, security, and reliability of online transactions. Businesses, on the other hand, set up smart routes to make those transactions work the way their partners want them to. Also, smart routing independently determines the most efficient route to direct the cash flow. As a result, sellers and buyers deal with their transactions without delays and without the risk of losing money. The cost of conducting the transactions themselves is greatly reduced.
But you can only get real access to the benefits of the routing by working with a truly reliable platform. If you need to set up smart routing payments, we recommend that you immediately contact the Corefy experts.
Some benefits of the smart route for you
This technology maximizes coverage by managing transactions both regionally and globally. This is a flexible solution that uses the key features of banking products. By leveraging the functionality of available offerings, smart route maximizes walkthrough by connecting to the infrastructure and applying business rules to streamline transactions.
Intelligent smart routing allows you to customize routes through different channels (accounts, currencies, banks), applying rules in real-time – controlling results, and adapting possible scenarios to business needs.
Innovative smart routing dynamically maps out the best way for each transaction based on channel availability, geography, card type, currency, device type, and other useful parameters. Algorithms embedded in smart routing help avoid double conversion. Entering new markets, smart routing makes it easy to connect to new acquirers and alternative payment systems, providing global reach at a minimal cost.
Therefore, smart payment routing rules are configured by experts for each client on an individual basis. The selection of which way a payout will take is determined by the individual setting of filters, cascading, and percentage breakdown. Filters analyze the parameters that came in the request from the client: risk assessment, geolocation, issuers, amount, device, browser, etc.
Cascading allows you to make payments and disbursements by alternative smart routes in cases where the payment system fails to respond. This solutiom greatly increases walkthroughs by leveraging banking resources. Percentage split determines the optimal ratio by which payments are allocated among available merchant accounts to achieve maximum throughput.
Provide the perfect route to achieve maximum online payment throughput. Using intelligent automatic cash flow distribution with a dedicated gateway greatly increases the efficiency of the entire system. The benefits of smart routing are especially felt by those who have to work with multiple payers at the same time. It streamlines and optimizes the execution of transactions.
If you need a smart routing payment gateway for your business, take advantage of Corefy’s offer now. Also, smart routing rules are set up by specialists for each client on an individual basis. The choice of the smart route is determined by the customized set of filters, cascading, and percentage breakdown.