Smart Transaction Routing

A global payments switch solution needs to provide you with connectivity to payment methods and payment services providers (PSPs) in multiple countries. The payment orchestration platform IXOPAY offers you that and much more! Use IXOPAY's Smart Routing Engine to implement different flow strategies for payments, increasing conversions while simultaneously cutting costs per transaction. 

With IXOPAY's Smart Routing Engine, Enterprise Merchants and White Label Clients always forward a transaction to the optimum PSP. Among the criteria that you can select for making payment routing decisions are card data, customer data, geolocation, risk assessment, and platform or application-specific data. Configure rules that enter into effect immediately via an easy, Drag & Drop graphic interface.

Multi-Acquirer Setup

The principle of redundancy comes to bear in mission critical applications: important components are replicated – on the one hand in order to distribute load, on the other hand to ensure that failure of one component does not bring the entire system to a standstill.

An uninterrupted processing of payment transactions is one of the most fundamental factors for a successful eCommerce business. 

Integrating multiple payment service providers is therefore recommended to ensure redundancy. If one of the individual service providers is unavailable (e.g. for technical reasons), you can seamlessly switch to an alternative provider.

The IXOPAY Smart Routing Engine is the tool of choice for optimizing the interplay between multiple payment service providers and payment methods.

Use IXOPAY's payment gateway technology to route transactions

Distribute Your Transaction Volume

The IXOPAY Smart Routing Engine allows you to determine the share of your transaction volume that should be received by each service provider. This ensures that the highest performing providers handle the essential parts of your transactions, and you can directly compare multiple solutions with one another and use them in parallel.


In the event of technical problems, commercial disputes or other business challenges on the side or your service providers (e.g. bankruptcy), you can set up so-called cascaded transaction processing. If the transaction is declined by the first payment service provider for one of the above reasons, or due to the transaction’s risk assessment, the IXOPAY Smart Routing Engine can automatically forward the transaction to alternative service providers. This increases the probability of the transaction completing successfully nonetheless.

Geographic Optimization and Cross-border Payments

Geographic criteria are relevant to both selecting the cheapest payment service provider and reducing decline rates. The larger the distance between the card issuer and acquirer, the higher the processing fees tend to be and the higher the risk of the transaction being declined.

The IXOPAY Smart Routing Engine (together with the Fee Management Engine) ensure that for example credit card transactions are forwarded to a regional payment service provider depending on the country of origin of the card. This reduces the transaction fees and increases your conversion rate.

You can choose to display payment methods so that local payment methods are prioritized in the selection of available PSPs, e.g. SOFORT for customers from German-speaking countries, iDeal for Dutch customers, or PostePay for Italian end customers. This is another simple and effective way to increase your conversion rate.

Risk-based Routing

The IXOPAY Smart Routing Engine is tightly integrated with our Risk Management Engine, meaning you can use the risk classification of an individual transaction to determine the ideal routing for you.

Fallback Routing

In particular when batch processing payment transactions (e.g. for recurring services), the technical availability of your payment service provider is mission-critical. If the service provider is unavailable, you will soon be swamped with declined and unsuccessful transactions, unsatisfied customers and overworked support and accounting staff.

The IXOPAY Smart Routing Engine supports you by helping you automatically route transactions over secondary payment service providers, if the primary provider is unavailable. This ensures that technical problems on the side of your service providers do not affect your bottom line and reduces bottlenecks in your setup.

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