routing • optimization
Payment Routing Strategies That Boost Conversions
•6 min read
Start with basic geographic routing, then layer BIN insights and provider health. Always support graceful retries and idempotency keys.
Core tactics
- Route EU cards to 3DS2‑capable providers with strong SCA
- Fail open to backup PSPs on network errors
- Prefer local APMs (PIX, iDEAL, Alipay) for relevant markets
- Throttle providers with elevated decline ratios
Metrics to monitor
- Authorization rate by BIN, issuer country, and provider
- Chargeback ratio and fraud rate
- Gateway and network latency
- Fee per transaction and per volume tier
FAQs
What is cascading?
Cascading retries a failed authorization at a backup provider using idempotent requests and anti‑duplicate safeguards.
How many providers do I need?
Start with two per region to enable A/B testing and failover.