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In this post we’ll take a look at how Spreedly is building capabilities to enable true Dynamic Routing for transactions to improve Success Rates. We’ve taken a deep dive into the importance of Success Rates in a previous post here. At Spreedly we believe that connecting to multiple payment services can be your secret weapon when you set out to increase success rates.
Using multiple payment services is a great baseline payments strategy, but there’s always room to improve. In this post we’ll describe how Spreedly is tackling the next level of optimization for users to get the most from their payments flow: dynamic routing.
How are you routing transactions today?
Looking across the payment landscape today, vendors provide a customized approach to routing with a strong emphasis on the end-user to manually configure and maintain their own routing rules.
Rules can get complicated, and rule-based routing has several limitations:
- Rules can become complicated as a company grows
- Rules need constant updates when new payment gateways are added
- Rules are heavily dependent on user inputs
In the long term, this setup can hardly be called “dynamic”.
How is dynamic routing different?
At Spreedly, we believe that true dynamic routing can only be achieved when routing decisions are made around one goal: improving success rates. How does this work in practice?
Spreedly’s platform will analyze performance for all transactions in a trailing 4 hour window (this duration will get close to realtime in the future), then choose the best gateway to route transactions to. Using card criteria such as Brand/scheme/logo, type, BIN, and country, Spreedly will route transactions to the gateway with the highest success rates.
This ensures that every time a transaction is routed, the selected gateway is the one that can give the highest probability for success. Based on real time monitoring, Spreedly will automatically switch to the next best-performing gateway, if the first gateway is experiencing downtime. Eventually falling back to the default gateway that is configured by the merchant).
The following diagram is indicative and not limited to how the various rules cascade to choose the best available gateway in terms of Success Rates.
This system presents the opportunity for merchants to route all transactions through a single API integration. When a new gateway is added by a merchant to their environment, Spreedly will automatically make use of it in its decision-making.
In the fast moving world of eCommerce, getting the most from your payment infrastructure is critical. Our unique data ecosystem, coupled with our large list of gateway integrations makes it possible for Spreedly to implement true Dynamic Routing.
Download the Multiple Payment Gateways eBook Below
What is the main difference between Spreedly's dynamic routing and traditional rule-based routing?
Spreedly's dynamic routing makes routing decisions based on one goal: improving success rates. Unlike traditional rule-based routing that requires manual configuration and constant updates, Spreedly analyzes transaction performance in a trailing 4-hour window and automatically routes to the gateway with the highest success rates for specific card criteria (Brand/scheme, type, BIN, and country). It also automatically switches to the next best-performing gateway if the first experiences downtime, eliminating the need for merchants to manually maintain and update complex routing rules.
How does Spreedly determine which payment gateway to route a transaction to?
Spreedly analyzes performance for all transactions in a trailing 4-hour window and selects the gateway with the highest success rates based on card criteria such as Brand/scheme/logo, card type, BIN, and country of origin. The system continuously monitors gateway performance and automatically switches to the next best-performing gateway if the primary gateway experiences downtime, eventually falling back to the merchant's configured default gateway if needed.
What are the limitations of rule-based routing that Spreedly's dynamic routing addresses?
Rule-based routing has three main limitations: rules become complicated as companies grow, they require constant updates whenever new payment gateways are added, and they are heavily dependent on manual user inputs. Spreedly's dynamic routing eliminates these issues by automatically incorporating new gateways into its decision-making without requiring manual reconfiguration and by making real-time, data-driven routing decisions rather than relying on static rules.
