# 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 **Minimize Operational Overhead:** Simplify complex routing rule sets that are difficult to manage and quickly become outdated in the ever-evolving payment landscape  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

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## 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.

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## 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.

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## Integration Overview

| Routing |  |  |
| --- | --- | --- |
| Processor Routing | Recommends the best processor for each transaction | √ |
| Card Network Routing(Debit or Credit) | Recommends when to use PINless debit vs. credit rails | √ |
| Card Network Routing(International or Domestic) | Recommends when to use domestic networks (Cartes Bancaires, Girocard, JCB, etc.) vs. international networks (Visa, Mastercard, etc.) | √ |
| Network Token Optimization | Recommends to use a network token or primary account number (PAN) for each transaction | √ |
| Payment Authentication for Regulation | Recommends when to apply 3DS or exempt a transaction if in a region with authentication regulation | √ |
| Payment Authentication for Risk | Recommends when to apply 3DS to borderline-risk transactions, adding an extra layer of verification to boost approval rates | √ |
| Business Strategies |  |  |
| A/B Testing | Automatically tests Forter Predictive Routing against a control group to continuously improve the model | √ |
| Processor Strategy | Inform the model of the processor strategies you want it to consider when making a predictive decision | √ |
| Processing options and constraints | Per transaction, ensure only eligible processors are taken into consideration | √ |