Predictive Payment Routing

Overview

Predictive Payment Routing is an AI-driven payment routing solution that recommends the best route to process each transaction by analyzing the entire payments ecosystem—determining the best processor, when authentication is needed, when to use a network token for authorization uplift, and more.

Benefits

? Increase Authorization Rates: Boost authorization rates by directing each payment down the route with the highest probability for success
? Reduce Payment Costs: Optimize the use of lower-cost card network rails or tokens and minimize retry attempts to reduce cost per payment without impacting authorization rates
? Support a Multiprocessor Strategy: Agnostic solutions that work across multiple processors to reduce duplicative costs and increase efficiency
? Minimize Operational Overhead: Simplify complex routing rule sets that are difficult to manage and quickly become outdated in the ever-evolving payment landscape
? Optimize 3DS: Maximize revenue and reduce chargeback liability - all without negatively impacting authorization rates or the customer experience

Routing Recommendations

Predictive Payment Routing offers four routing recommendations. Merchants can choose to receive any combination of the below recommendations.

Processor Routing

Which PSP should process this transaction?
Recommends the best processor for each transaction based on likelihood of success, cost, and business strategies

Card Network Routing

Which network rail should I send this transaction to?
Examines the cost and issuer preferences to automatically select the optimal card network rail — such as debit, credit, or domestic rails — for each transaction

Network Token Optimization

Should I use a network token or primary account number (PAN) with this transaction?
Assesses the cost, country, issuer preference, and more to recommend when to use Network Tokens vs. Primary Account Numbers (PAN)

3DS Optimization

When should I apply 3DS or exempt a transaction?
Evaluates issuer and consumer preferences, plus transaction risk and regulatory factors, to recommend when to use a 3DS challenge, frictionless 3DS, data-only 3DS, or exempt a transaction from 3DS

How it Works

Forter Model Factors

Forter’s model takes into account a variety of factors when making a routing recommendation, including:

• True cardholder identity and past card behavior with each processor
• PSP technical and operational restrictions (E.g. TRA exemptions)
• PSP availability
• Acquiring cost
• Risk decision and risk related parameters
• Authorization rate probability
• Processor/network rail and credential combinations
• Likelihood for 3DS authentication/authorization success
• Previous attempts that failed routing requirements

Merchant Model Inputs

To ensure our recommendation model is aligned with your payment strategy, Forter will work with you to define specific boundaries for the model, such as:

? Processing options and constraints: Payment processing platforms and any constraints relevant to their processor (for example, if a processor only processes specific payment methods, or operates in specific regions).
? Business Strategies: Forter can take into account any payment processor business strategy as dictated by the merchant. For example, if you are required to send a specific processor a certain amount of transactions each month.
? Routing Policies: Merchants can dictate specific routing rules for transactions that should be excluded from Forter routing decisions. For example, you can create a policy that all BinCountry = UK should be routed to Adyen. This would exclude transactions with the BinCountry equal to UK from Forter’s Predictive Routing logic and send all transactions that meet that requirement to Adyen.

Reporting

Forter’s Insights dashboard uncovers numerous data points and POV’s, allowing a complete and unified view of your payment performance.

? Authorization rate comparisons by processor, card type, network, and more.
? Ability to drill-down into individual transaction segments and decision details
? Custom data visualizations and reporting for any stakeholder in your organization

Integration Overview

Pre-Authorization Call (Before Each Payment)

a. Request
i. Transaction details
ii. Order Information
iii. Customer data

b. Response
i. Recommended PSP
ii. Recommended Network
iii. Recommended credentials (PAN /NT)

iv. 3DS strategy (e.g., Use 3DS, apply exemptions).

Status Update (After Each Payment)

a. Request
i. PSP Used
ii. Payment Result
iii. 3DS Outcome

b. Response
i. Updated PSP and 3DS Recommendations.
ii. Can also recommend a no-retry.

Integration Overview