Product / Service Description:
Having an international online shop means working not only with international customers, but also with international payment methods and providers. Online merchants deal with a great amount of transactions on a daily basis and experience problems with unprocessed purchase requests due to network problems, provider downtimes, or system downtimes. This is a very crucial issue for this client’s business core, which affects revenues as well as new business development strategies for a further expansion.
To secure failovers, online merchants search for more payment providers that can guarantee secured payment transactions at any given time. But before transferring to a new technology, the client needs to be sure that this partner is stable and reliable, and has a scalable technology that will always be available to process payments. Thus, adding more payment providers means more money and more time for technical implementation.
The main goal of optile’s Advanced Routing is to give merchants the choice to decide on how their payment transactions should be distributed between connected payment service providers and methods in all countries they are active in. By spreading risks between various payment methods, payment providers, acquirers, or banks and across multiple countries, optile’s Advanced Routing helps merchants to avoid downtime and improve their payment success rate.
Advanced Routing is made for online businesses who want to reduce costs by optimizing routing rules; benchmark the performance of providers and even A/B test providers or payment methods to find out who performs best in which country, and set up the best local acquirer as your first choice.
Product / service innovations in the last 12 months
Failover Routing: If a payment request is denied by the chosen payment service provider and the denial reason is considered recoverable by optile’s Advanced Routing (e.g. due to a provider downtime), it can immediately and transparently repeat the transaction with an alternative provider. The order of providers for retry can be configured in the context of the following routing strategies. Fixed Order Routing: If there are multiple payment service providers configured for a payment method in a country, optile Advanced Routing can dynamically determine the best provider. This provider will be used for a payment transaction, based on a fixed order configured by the client. Least Cost Routing: If there are multiple payment service providers and pricings configured for a payment method in a country, optile Advanced Routing can dynamically determine the best provider that will be used for a payment transaction by calculating the route of the least costs, based on configured transaction discounts and fixed fees for the providers. Active Active Routing: optile Advanced Routing can be configured so that it uses multiple payment service providers in parallel for specific payment methods in specific countries, in the sense that it prorates incoming transactions between them in accordance with preconfigured ‘weights’ of the corresponding providers. Interchange +/++ Calculation: The price of routes with so called Interchange+ or Interchange++ pricing schemes can be configured to a feasible extent within the contract configuration and the individual transaction price for such contracts is calculated in real time to enable more exact routing decisions. Custom Routing (Enterprise): Standard routings are easily configurable by user-friendly optile routing configuration frontends which create transparency and an easy understanding of what is happening. However, for certain setups a combination of above routing strategies and/or more complex routing workflows may be useful. Custom routings are programmed via scripting languages. Open Routing (Enterprise): The response to a list request contains a full, ordered list of routes as calculated by the Open Routing, so that the client can use it as routing recommendation and merge it with additional routes that it may have with providers that are connected directly, i.e., without the processing through optile.
What is the difference between competitive solutions?
With Least Cost Routing, all transactions are automatically routed to the cheapest option in the payment portfolio while using the other providers as failovers.
The cascading ranking order named Fixed Order Routing raises the payment success rate.
The transaction volumes can be easily shifted and balanced from one provider to another to fulfill minimum volumes and to find the perfect payment strategy.
With optile’s routing, all transactions are streamlined through optile. Thus, a lot of payment costs can be saved, denials could be turned into successful transactions, and the transaction flow could be shifted between different payment service providers. Increase Acceptance Rates: By using Fixed Order Routing and its cascading flow order, merchants can raise the payment success rate. If a transaction fails to go through the first provider for a non-final reason like insufficient funds or fraud, optile’s Advanced Routing requests another provider as a second-best choice. Merchants can improve their conversion rate by setting the best performing provider for each country. Minimize Payment Costs: With optile‘s Least Cost Routing, the merchant is able to actively reduce costs. Transactions will be automatically routed to the cheapest option in the portfolio, while the other providers would be used as failovers. Manage Transaction Flows: optile’s Active Active Routing can benchmark a provider’s performance. It is easy to shift and balance the transaction volumes from one provider to another to fulfill minimum volumes and to find the perfect payment strategy. With optile’s Statistics App, the merchant will be able to analyze cross provider payment data.