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Why Should Businesses Choose Payment Routing Solutions

by janeausten

Routing Management

Each client is unique in how the rules of payment routing solutions work. After reviewing the requirements, experts choose a route based on the filter settings, cascading abilities, and the split of the payment.

  • Cascading

In cases of declined transactions, your payments and payouts are rerouted, increasing the success rate.

  • Filters

Analyze the following parameters in a client request.

  • Payment Percentage

To achieve maximum payment acceptance, determine the best ratio of payments between client accounts.

A Framework to Payment Routing

The business’s lifecycle changes and payment routing solution adapts to meet industry standards. To map the routing journey, we created a framework.

Many businesses begin by only working with one provider. Many companies decide to switch to multiple providers as their business grows and shifts to digital-first payments. SubscriptionFlow can help you with this step up by allowing direct integration with multiple gateways around the world via one API.

When working with multiple providers, some businesses prefer static routing. Companies can start with static routing to get started in multi-provider strategies. Without a data-driven, dynamic route solution, multiple providers will not reap the full benefits.

Global businesses can increase their success rates by as much as 8% if they have a multi-provider approach that is truly parallel. Amazon, Uber, LinkedIn, and Uber have dedicated payments teams that have developed a dynamic routing solution for their customers to increase their margins.

Companies can also use Smart Routing, an already-implemented dynamic routing solution that requires minimal code changes. With this, any company can easily build a top-notch payments stack that uses data to enable payment routing.

Why Should Businesses Choose Multiple Payment Providers for Processing Their Transactions?

Payment processing interruptions can lead to declined transactions, checkout abandonment, and decreased customer retention. Multi-acquirer services provide seamless integration that protects your revenue stream. If one service provider is not available, you can switch to other service providers.

Enterprise merchants have access to multiple payment integrations for acquirers. Increase payment acceptance rates, and reduce processing fees.

Multi-acquirer setups are a good idea for global and regional merchants. This allows for flexibility and independence while protecting payment flows from unanticipated outages.

Uninterrupted payment processing is essential for a successful eCommerce business. Payments can be protected by integrating with multiple payment service providers.

Why Do Payments Fail?

Although there are many reasons why a payment might fail, we can still break them down into three main categories.

  • Technical reasons
  • Due to financial reasons
  • Reasons for risk assessment

The most difficult reasons to understand are usually economic. Most cases are due to card limits being reached or cardholder accounts not having enough funds to authorize the transaction. However, technical and risk assessment issues can be more complex.

Transactions can go wrong due to technical problems at one of the key parties involved in a transaction. However, transactions can fail because of an issuer/bad acquirer connection or fraudulent and risk assessment reasons.

It is difficult to pinpoint the cause of a transaction failure, but it is possible to take steps to reduce their frequency and impact.

How Can Payment Routing Affect My Business?

If you accept non-cash payments (e.g. credit and debit cards), or if your business is an e-commerce one, payment routing is part of everyday life.

Payment processing can be both a blessing and a curse thanks to the technology.

Payment routing can be both more efficient than cash and it is less risky. It is also the financial technology that makes it possible to e-commerce.

Traditional payment routing, however, limits the transactions you can make to an acquiring bank in your payment network. Payment routing can still be useful if you restrict your market to one country.

If the world calls, however, it is impossible to meet their needs. Accepting other payment methods is a losing proposition. Customers are disappointed, transactions are declined, and potential growth is lost.

Intelligent Payment Routing, like its predecessors, is transformative for eCommerce merchants. It allows your business to confidently take the world stage. It allows you:

  • Attract a global audience, including valuable emerging markets
  • To encourage shoppers, seamlessly accepts payments
  • Be different from your competitors
  • Reduce the cost of your sales and marketing efforts


Smart routing is a possible solution to the payment gateway problem. Smart routing uses advanced data analytics and algorithmic tools, including artificial intelligence (AI), and machine learning (ML), to assist merchants who use multiple PSPs in determining which payment gateway will provide the highest transaction returns.

These methods can analyze a variety of data points to determine which payment portals have the highest transaction rates based on the payment method, location, or other factors. These analyses can be used to help merchants process payments efficiently and increase their bottom line.

Merchants can improve their transaction success rates by using smart routing, but selecting the right payment gateway is just one variable in a complex, interconnected payments process. Businesses must focus on developing comprehensive payment orchestration strategies that provide holistic approaches to payment optimization.

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