# Predictive Routing Recovers Declines and Lowers Costs

## Authentication Model

## Routing Decision

### Decline

### Approve

### High Risk

## Card Vaulting

### Pre-Auth Fraud Decision

- No 3DS
- Token Decision
- Card Network Decision
- Processor Decision

## Merchant Enhanced Authorization

- Major Card Network
- Processor A
- Network Token
- Frictionless 3DS
- Debit
- Processor B
- Card Number

### Frictionless or Challenge 3DS

- Domestic Network
- Processor C

## Key Strategies

Finally, with machine learning becoming increasingly popular, merchants can utilize this technology to determine the optimal route for each transaction based on authorization rate, cost, and risk, factoring in:

- Which card network to leverage?
- Which processor to use?
- When to use a network token?

If a transaction is declined, the model dynamically reroutes it through alternative networks or processors to recover the payment. With this approach, merchants can maintain control by layering business strategies directly on top of the model, such as applying routing logic to selected volumes or setting specific business commitments.

## 3DS Approves More Transactions, Without Added Risk

High-risk transactions should be sent through 3DS to gather more information on the customer and shift liability to the issuing bank. This allows merchants to possibly save the sale without taking on additional chargeback risk.

Without 3DS, many of these transactions would be lost by default. By applying 3DS instead of automatically declining them, merchants expand approvals, capturing revenue that would have otherwise been left on the table.