To ensure that the payment process is fast and beneficial for the seller, Tranzzo uses smart routing technology. The system analyzes over 30 payment parameters and selects the optimal path for transaction processing. This increases conversion by an average of 30% and saves up to 20% on acquiring commissions.
"If one bank issued the card, it would process the payment the fastest. For this operation, more lenient anti-fraud rules will apply. Up to 2% of payments may be rejected by banks due to strict fraud protection checks. We always strive for 100% successful payments for businesses," says Tranzzo CEO Margarita Ochigava.
The more information known about the card, the easier it is to direct transaction processing along the most advantageous route. A service called BIN lookup helps Tranzzo collect and analyze data, providing information about the card based on the Bank Identification Number (BIN). Those are the first 6-10 digits of the card number. Using BIN lookup, the payment platform determines parameters that help optimize routing, such as the bank's name, card type, country, and currency.
To process payments both fast and efficiently, Tranzzo collaborates with more than 10 Ukrainian banks. If one of them rejects a payment for some reason, the system automatically selects an alternative and directs the transaction to another acquirer. This technology is called cascading. It solves the problem of refusal from the bank's side. The selection of alternative acquirers for payment processing continues until the payment is successful.
"An important advantage of cascading is that finding and selecting the optimal route takes a few seconds. Therefore, the wait for the buyer will be insignificant – they won't notice any changes in the payment process," emphasizes Margarita.
Cascading and routing help ensure a payment conversion of up to 95%. For the buyer, the payment process takes seconds and requires no extra actions. This creates a positive payment experience and increases the likelihood of repeat purchases.