Smart Payment Routing as a flexible payment solution

The use of intelligent payment routing and automatic distribution of cash flows using a special gateway significantly increases the efficiency of the smart routing system. The benefits of smart routing are especially felt by those who have to work with several payers at the same time. It streamlines and optimizes the execution of transactions.

Cascade payment in modern business

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 needless and avoidable. That means slowdowns and the possibility of missing out on profits.

Electronic payments require flexibility and excellent digital skills. Ensuring a stable intelligent payment routing 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 efficiency of the sales department.

When an innovative tool like payment routing is used, it protects against most failed transactions. Both merchants and consumers can quickly make payment routing gateway and accept payments in real-time without the hassle and frustration. In addition, proper payment routing minimizes transaction costs, increases system throughput, and reduces downtime.

Customers are completely oblivious to how exactly the payment routing works, where the data is stored, and how it is handled. What matters to them is the speed, security, and reliability of online transactions. Businesses, on the other hand, have to configure routes to make those transactions work the way their partners want them to. Intelligent payment routing independently determines the most efficient route and directs the cash flow to it. 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.

Payment routing to multiple banks is the automatic redistribution of transactions by the payment gateway to the respective smart routing payment gateway of issuing banks. Payment routing to two banks allows combining the issuing bank and the acquiring bank into one, which eliminates several links in the transaction chain. This enables the issuing bank to conduct the transaction on us, which significantly reduces the rejection rate.

But you can only get real access to the benefits of payment routing by working with a truly reliable platform. 

Cascade payment in modern business

Description of operating principles of smart routing

The payment routing system, that is, the intelligent choice of the optimal “route” for thesmart routing and cascade payment and settlement system, is about the choice of intelligent payment routing and output channels, so how to reflect its intelligence? Let’s look at a few examples first: You can also read more  on the Corefy`s site.

Example 1. There are two existing channels: the billing rule for channel A is 1 cent, and the billing rule for channel B is 2 yuan per transaction. There is no doubt that under the same conditions, we are more inclined to use the cheaper channels, and which one is cheaper will depend on the amount of the transaction.

Payment routing is about saving money!

Example 2: There are currently two payment channels, and the transaction fee is 2 yuan. The arrival time of channel A is usually less than 30 minutes, and the arrival time of channel B is 2 hours. Obviously, we typically choose to receive the bill quickly.

Payment routing is designed to improve the user experience!

Example 3. There are two existing channels. Channel A has an advantage in terms of cost and user convenience. However, there is a disadvantage. This transaction channel A will not work even though channel B’s cost is higher and speed is lower. But in the end, it can pass and meet the needs of users, so I must use channel B.

Payment routing is for channel availability!

Besides, what am I supposed to do if the channel suddenly becomes paralyzed and have to wait for the other side to recover?

Let’s look at a few common limited input (payment) and withdrawal (cash withdrawal) channel sizes:

  • Deposit: single limit, card type, bank, daily limit, current month limit, etc.;
  • Withdrawal: arrival time, amount, issuing bank, initiation time, account type (public and private), etc. 

Related Instructions:

  • Sort the channels according to the processing fee from smaller to larger, and if the processing fee is the same, sort by channel weight;
  • Consistently check the channel conditions according to the channel order. If any current channel condition is not met, the channel does not meet the conditions, and the next channel condition check is performed.
  • Until a satisfied channel is found, if all channels are not satisfied, the transaction is not supported.
  • The aforementioned intelligent payment routing system logic model is more suitable for scenarios with numerous channels and more complex evaluation rules.

The general logic is this:

  • Set up N rules and 1 default channel.
  • Each rule has two components: a “condition” and a “channel”, and a condition consists of several dimensions of conditions to form a set of conditions.
  • When the condition is met, use the channel, if the rule is not met, enter the next rule solution until the rule is found.
  • If all rules are not satisfied, use the default channel.
  • To make it easy to understand here is an example
  • Bank A: All payouts are free, but the payout period is too long;
  • Bank B: Free intra-bank transfer, real-time arrival, inter-bank transfer fee;
  • Bank C: All fees are paid, but less than 50,000 will be credited in real-time, and the payment cycle for more than 50,000 will be longer.

According to the above conditions, our design plan is that if the receiving bank is B, Bank B is used for payment; if the receiving bank is not B and the amount is within 50,000 and when the time limit is high, use Bank C for withdrawal; Except for the above rules, Bank A is used for payment in all other situations.

The above discussion is just a simple model of the intelligent payment routing system. There are many more details that have not been explained. Select a few points that need attention and present them to everyone.

Each channel can be configured as an available channel and can be switched when a third-party channel is not operating normally.

Each rule supports the configuration of effective time and expiration time without having to squat to change operations.

Rule adjustments support hot-swapping instead of being hard-coded, there is no need to restart the application

For a payment routing system, it is sufficient for the payment to have a smart routing system that usually does not involve changes at the product level, but it is better for the payment to have appropriate adjustments at the product level.

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