A good cascading system is vital for any online business wanting to expand and increase sales. In the world of digital payments, cascading single transactions to various payment processors is logical, smart, and great for business. It also represents a solid and intelligent routing strategy that every online business should have, especially if they want to expand into new and emerging regions.
A robust and well-thought-out cascading system isn’t only effective in increasing sales. There are numerous additional benefits, such as an improved user experience that leads to a great company reputation and encourages repeat business. By implementing pre-defined rules and endpoints, transactions stand the highest chance of being approved, and that means the best success rates. An intelligent routing strategy is like having an insurance policy, ensuring fewer lost transactions and more profits.
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What is a cascading system, and how can it increase sales?
A cascading system refers to routing in the business payments flow. While some applications follow a fixed, predetermined payment flow when making transactions, other applications use logic and rules to decide the route a transaction should follow dynamically.
Smart Payment Routing takes into consideration various features and functionalities of banking products. Global merchants with the right cascading systems and routing strategies enjoy high payment acceptance rates, optimizing incoming and outgoing transactions. Payment Routing calculates and follows the most optimal routes across banks and MIDs. Rules are configured in real-time as results are tracked, and the engine is fine-tuned to perfection, resulting in quicker and simpler transactions.
Making cascading payments part of a business’s overall payment gateway strategy is advantageous for two main reasons. Firstly, cascading improves success rates when it comes to transactions, and secondly, it optimizes fees and approval ratios for merchants. Both of these factors help to increase profits for online businesses. An additional benefit is an improved user experience, as end users don’t have to face declines and fail to complete their purchases.
Benefits of multiple providers
One of the significant benefits of working with multiple providers is the ability to use cross-PSP retries for failed transactions. Indeed, instead of just determining which acquiring bank would be the most relevant for a specific transaction, doing intelligent payment routing is more than that. When dealing with multiple PSPs, one of the major benefits is the possibility of cascading. Intelligent payment routing strategies allow merchants to split their transactions into different merchant accounts depending on various parameters like the transaction currency or its risk level.
Geographic expansion for business growth
Having the right routing strategy in place is vital, especially for businesses operating in more than one region. Using a proper cascading payment flow also makes expansion to new regions more accessible and more efficient through reduced friction times. Online businesses operating in emerging regions, including many countries in Latin America, rely on well-tweaked cascading systems, offering companies the best chance of capturing a payment and a positive customer experience. This all equates to increased online sales and the opportunity to expand one’s enterprise and business interests to their full potential.
For more information about Zotapay (Zota) and how we can help your business, reach out to one of our dedicated team members, who will be happy to assist or answer any questions you might have.