Wouldn’t it be great to have some kind of magic wand that you could use to tweak every single aspect of your business operations and reach the highest success rates? Maybe, but we live in the fantastic times when these goals are pretty achievable without falling back on magic. Miracles aside, handy and tangible smart payment processing tools are the solution.
Though frictionless payment processing is frequently listed among the cornerstones of customer satisfaction, done right, it can as well spare your business many sorts of trouble.
In this article, we’ll dive into what smart payment processing is, which tools it leans on, and how it equips your business for growth.
What is smart processing?
The most common and basic definition of payment processing says it is the process of settling an online transaction between the customer and the merchant, performed by a third-party service (payment processor). Depending on the payment method, this process consists of various steps and may involve different parties (banks, e-wallet providers, etc.). The result of payment processing is a processed transaction, regardless of was it accepted or declined.
Today it’s not enough to offer just one or two payment options. The payment industry becomes increasingly complex, as new methods and technologies appear and change customers’ preferences, requiring businesses to keep up. To stay afloat and make your way through the competition, you should grant a seamless and straightforward but yet versatile shopping experience, and efficient payment processing is one of its essential elements.
Smart processing is a solution designed to make payment processing not only frictionless and optimised for the customer, but also effortless, streamlined, and beneficial for the business.
The exact offering varies from PSP to PSP. Most of them offer intelligent payment routing, which is a great tool itself but comes at all its glory when paired with other instruments. We at PayCore.io see our smart processing engine as a solution comprising of:
- Smart payment routing;
- Currency conversion;
- Anti-fraud tools.
Let’s explore each of them to learn what they do and why it’s cool.
How does smart payment routing work?
Routing is one of the crucial elements of payment processing. If you work with a single payment service provider, every glitch or downtime on their side will result in your losses. That’s why it’s reasonable to work with multiple providers, and this is where you need to route your payments in the wiser way possible.
In one of our previous articles, we told you that payment routing can be static and dynamic and explained how they differ. With dynamic routing rules, all transactions can be instantly analysed and automatically routed to the optimal provider based on a variety of selected parameters, like card issuer (country, bank, INN/BIN), type, and brand; auth mode (CVV/3DS); store (commerce account); location; amount; currency, etc.
Another feature of our smart routing is the optimisation presets, which allow you to easily set up routing according to your goals. For instance, you can optimise costs by letting the platform to determine the optimal route for each transaction based on a fee value. Visit our product page to learn more about presets.
Why cascading is a killer feature?
Cascading is a crucial element of the intelligent payment routing strategy. It helps to avoid the loss of sales caused by the provider’s malfunctions. When a situation like that occurs, each transaction will be automatically rerouted to the active vendor.
It results in a dramatic decrease in the decline rates, and therefore, in a revenue boost. Moreover, you can save on processing fees, by directing transactions from a particular region to providers with higher approval rates and lower charges.
By relying on cascading, you save on fees and increase conversion, which makes this tool very valuable to businesses.
Do you need dynamic currency conversion?
As your business gets bigger, effective currency conversion becomes an increasingly important part of your payment processing.
With smart processing, you can save on the conversion fees and earn money. You don’t need to maintain a balance in every currency. Multi-currency conversion allows you to display the prices in the preferable currencies and accept such payments even not having a balance in all those currencies. This way, your customers will be able to pay in the currency of their choice without hidden charges, while you can expand your business and mitigate the risks.
You can opt for dynamic currency conversion schemes to set conversion rates for every currency pair automatically based on the preferable source.
Combat fraud with risk-management tools
Online payments must be secure for both shoppers and sellers. That’s why we created a toolkit for alleviating risks and fighting fraud.
For instance, you can selectively apply 3D Secure to certain filtered transactions, automatically cut off suspicious or undesirable traffic using Blocking Schemes with configurable dynamic rules, add payers to blacklist after several failed attempts to complete a transaction, etc.
7 awesome smart processing perks
The effect of smart processing boils down to these seven benefits every business wants and needs:
- Increased conversion. Some companies see up to 40% increase in conversion rates as they choose smart processing. On average, businesses face a 10-20% increase.
- Lower fees. The ability to find the lowest-cost way for each transaction and select the exchange rates can save you up to 30% in payment fees.
- Protection. Fraud prevention and risk mitigation instruments reduce fraud losses by more than 20%.
- Fast processing. All the magic happens under the hood, instantly and seamlessly for the customer.
- Automation. Though all smart processing tools are highly configurable, once you found what works best for your business, you can sit back and enjoy.
- Customers satisfaction. Grant your customer what they’re striving – convenience, simplicity, security and versatility.
- Frictionless operations. Put yourself out of trouble and panic when something goes wrong and cashflow stumbles. Smart processing is a kind of insurance policy, helping to avoid lost transactions.
How to start using smart processing tools
If you work with multiple payment providers and feel smart processing is what your company needs, you can get on board with us. Contact us to get all the necessary information and help with getting started.