#Routed transaction definition software

This entire process takes place in a matter of seconds, without the shopper ever being aware that anything other than a straightforward payment is being handled. If the payment fails for some reason other than a lack of funds, then the transaction will automatically be re-sent to another acquiring bank. Once this has been put in place by payment gateway routing, when a customer opts to “buy now” on the merchant website, their transaction will be processed via an acquiring bank chosen according to factors such as the region where the shopper is located, the currency being used to pay and the type of card. The parts of the world that the business is selling into The product(s) or service(s) the business provides Working with a dedicated provider of intelligent payment routing, means the provider will select the appropriate acquiring banks suited for the details of your business. In addition, payment gateway routing increases the percentage of transactions that are approved quickly, driving revenue higher and increasing customer satisfaction. The first big advantage is that it makes it easy for a business of any size to sell to customers from any part of the world, including emerging markets that may not offer as many payment options. This offers two distinct advantages over the traditional payment model, which relied on the single merchant bank of the merchant, and often required a different bank of this kind in every territory. This means that if a transaction fails at one bank it is automatically presented again to another bank – one that is most likely to approve it.

#Routed transaction definition software

This is made possible through the use of detailed payment analytics and processing software that guides payments in the right direction, as well as “failover transactions”. In simple terms, intelligent payment routing involves routing individual transactions so that they are presented to the acquiring bank that is most likely to approve them.

The answer to this problem is to work with a provider offering intelligent payment routing. This is particularly true if a payment is declined for technical reasons, rather than issue such as a lack of funds in the account.Īs more and more merchants trade on a global basis, the number of factors that could cause a payment to be declined or fail multiplies along with the number of potential banks involved. The more work a potential customer has to put into making the payment, the more likely they are to abandon the process and shop elsewhere. For any online merchant one factor that often makes the difference between success and failure – defined as a sale going through smoothly or crashing before a payment can be made – is a frictionless payment process.