Payment convenience is crucial to consumer pleasure. Unsurprisingly, several payment technologies help firms optimize their payment operations and provide quick, reliable checkout experiences. Smart routing is useful for worldwide enterprises with different payment suppliers. Akurateco offers smart payments routing to help you surpass client expectations and utilize transactions.
What’s Payment Routing?
Card transactions depend on payment routing between the issuing and acquiring banks. When you enter your card credentials on an online checkout page, the merchant’s bank (acquirer) routes them to the customer’s bank (issuing bank) to ensure payment from the proper account.
Payment routing is the determination of the optimal path for a payment transaction. It helps to avoid “hard declines” (e.g. insufficient funds, unacceptable currency) and resolve “soft declines” (e.g. card refusal to work with a particular processor) by routing the transaction through a different payment route until it is successfully completed.
Smart Routing: Why does it differ?
Small firms may use one gateway and processor for all payments. When expanding globally, organizations must make sure their gateway serves all currencies, payment methods, card kinds, and issuing institutions. They must also guide each transaction to the correct gateway to avoid technical glitches and refused payments.
Large enterprises that use several gateways and processors to serve clients benefit from smart routing due to their sales size and geographic reach. Multiple processors make their payment system more complicated. Smart routing ensures that clients may pay how they choose and that their transactions are sent to the best gateway.
This system sends transactions to the optimal gateway based on currency, payment type, card issuer, location, and amount. Merchants maximize transaction success with clever routing. Smart routing can aid foreign and high-volume enterprises, as some gateways may fail during peak sales periods (think Black Friday for eCommerce shops). Looking for something like this but treading in a sea of options? Explore the top of the best payment orchestrators at: https://payspacemagazine.com/all/the-best-payment-orchestration-platforms-in-2022/.
Advantages of Smart Routing
- Increased Success Rates
As noted, smart routing payments route each transaction to the gateway with the greatest authorization rates. If one gateway rejects the transaction, the second-best gateway will take over. Keeps payments from being denied and saves your organization sales.
- Lower Transaction Costs
Gateways charge different transaction fees. Companies can reduce transaction costs by routing each transaction to the best gateway. Consider currency transactions. If your firm is in the UK and your client is in Portugal, a Euro gateway will save currency conversion fees.
- Customer Content
Customers demand quick and easy payments. Rejected transactions make customers more inclined to exit the checkout page and shop elsewhere. Offering a range of payment methods and a fast, dependable checkout experience may boost customer happiness and loyalty, which is crucial for any business.
How does Akurateco Help?
Companies may connect to any payment provider or technology in any market with Akurateco solutions. It lets you adopt any payment system rapidly. In addition to simplifying integrations and saving time, money, and resources, Akurateco has all the tools and features you need to optimize your payment system.
Akurateco always provides the newest technology, including smart routing to improve your clients’ payments. Contact Akurateco to see how your business may benefit.