Payment Routing from Tranzzo: How to increase conversion by 20%?

The online payment process is not just a payment from a user and a charge by a business, it's a complex process that involves many steps. The transaction starts with a click of the ‘Pay’ button and goes on its way through the acquiring bank, payment gateway, and processing centers. 

❌ But what if this route is not optimal?

❌ What if the transaction gets stuck or declined somewhere along the way?

The customer will not receive the desired purchase, and the business will lose profit.

Payment Routing is a technology that ensures every payment finds the fastest and most reliable route. When choosing the best route in real-time, the system takes into account many factors: fees, processing speed, and rejection risks.

Every day, our Tranzzo team optimizes thousands of payment routes and tests new approaches, which allows us to adapt to changes in the financial ecosystem faster. 

Below, we will analyze how smart routing works, why it is important for business, and how it affects the positive growth of your conversion rate. ⬇️

As we mentioned above, every online payment goes through several stages. But here's the problem - not all routes are equally effective. The same payment can go through one provider flawlessly, but be rejected by another. This is where smart routing comes in.

Think of it as an intelligent navigation system: if one route is busy or has a risk of failure, the system instantly selects an alternative route - through another bank, PSP, or processing center. 

Find out how routing increases conversion by 30% and saves up to 20% on acquiring fees  ➡️ in the link

Smart routing selects a route for a transaction depending on business logic. It can work according to predefined rules or based on machine learning, analyzing historical payment data.

1️⃣ Initiating a payment

The user enters payment details and confirms the payment.

2️⃣ Transaction analysis

The Tranzzo system checks the key parameters: the buyer's region, currency, card type (Visa, Mastercard, Amex), risk factors, and the history of successful payments.

3️⃣ Choosing the best route

• Based on specified algorithms (rules or AI models), routing selects the best payment provider or acquiring bank.
• If one of the providers has a high failure rate or technical problems, the system automatically switches to an alternative option.

4️⃣ Conducting a transaction

The payment is sent to the selected acquiring bank for processing.

5️⃣ Receiving a response

✅ If the transaction is approved, the user receives a confirmation.

❌ If it is rejected, the system can instantly send the request through another provider (if the ‘cascading’ function is configured, i.e. retrying through an alternative route).

• Learn more about how the Tranzzo team increases the successful transaction rate during the high-traffic period ➡️ in the link

At Tranzzo, we use flexible routing that adapts to market conditions in real-time, ensuring a consistently high transaction success rate. Speaking more specifically about the technical features of our smart routing system, we should highlight:

✅ A reasonable balance between cost and speed 

We have developed a routing system where we optimize payments and reduce fees. At the same time, the quality of processing does not become worse, and the time does not become slower. 

We use fast routes that ensure instant processing of online payments without delays.

✅ Automatic fallback mechanism

If a payment is declined, our system automatically redirects it through another provider in real-time, without user involvement. This allows you to try the transaction again without having to ask the customer to enter the data again.

✅ Flexible settings for business needs

We allow businesses to customize their routing rules, such as sending transactions through a specific provider depending on the country or payment amount.

The Tranzzo team also gives you access to in-depth analytics. You can track the effectiveness of each route and react quickly to changes.

🚀 +15-25% increase in payment conversion

🚀 Reduced processing costs by choosing the best channels

🚀 Fast scaling to new markets without the need to integrate dozens of payment systems

With Tranzzo's payment routing, your business gets more successful payments, fewer declines, and control over costs. 

Our team doesn't just offer you a payment solution - we create a financial ecosystem tailored to your business and the real needs of companies.

Interested in how Tranzzo can improve your performance? 

Contact us and find out how to increase your payment conversion today ➡️ sales@tranzzo.com