Smart routing is a special payment processor’s service that ensures hassle-free shopping for users. Intelligent routing passes the transfer to the bank that is responsible for the payment processing. The next step is to ensure the system marks the transaction as a successful one. Thanks to the smart routing the payment processor establishes the connection with the bank that’s most likely to process it. That to say, the system will automatically define the passing bank that allows the transaction to lower the decline rate.
As soon as the shopper presses the “Buy” button, the intelligent routing passes the transaction to the fitting acquiring bank. The system will analyze the merchant’s industry, and currency & payment card the shopper uses to make a connection to the right bank. That increases the transaction’s approval chances. Nevertheless, if the transaction processing fails, the system redirects it to another bank automatically. In the future, it remembers the peculiarities and sends the request straight to the correct bank.
A smart routing option is what the merchants should look for as they search for a payment processor. So as the system connects the merchant to the most fitting bank it lowers the decline rate. There are other vital smart routing features:
- flexible terms for processing of the different card types,
- multiple re-try attempts,
- system backups,
- using several MIDs for traffic distribution to lower the chargeback ratio.