Global Processing Solution – Know Why Do So Many Payments Fail

1. Global Processing Solution – Know Why Do So Many Payments Fail? Today’s e-commerce businesses must have the capability to sell to shoppers all around the globe. According to a report, 65% of consumers would prefer buying globally rather than locally if the price is right, and that the number is likely to increase if the global e- commerce market continues to flourish as expected. Will it astonish you to know that your ability to capitalize on this opportunity depends in part of your global payment processor? That’s right –Global credit card processingcan help you make more international sales, as long as it’s done right. And it’s not easy to say what’s going on behind the scenes of a processing engine, which makes it difficult to compare your options. This post explains how global payment processing works and the different ways it is handled by various global payment processors. How Global Payment Processing Works:

2. In a nutshell, here is the typical payment gateway process:  The customer submits their order on the merchant site.  The gateway captures the transaction request from the merchant and transfers it to the acquiring bank.  Upon transaction approval, the acquiring bank transfers the fund to the issuing bank.  The issuing bank then either approve or decline the transaction and send the response back to the payment gateway via the acquiring bank.  The payment gateway then confirms about the transaction to the shopper. How does global payment processor get routed to the right acquiring bank? For payment processors with a single acquiring partner in the same part of the globe as the shopper, the foreign transaction is most likely to be forwarded to the acquiring bank. Payment processors with multiple acquiring banks in different parts of the globe require routing rules that confirms where the transactions are sent. Our routing system learns the best places to send transactions based on data analytics by considering the below things:

3. Card Type– Some acquiring banks are there who do not accept all types of credit cards. If a shopper is using a less common card, like Diners Club, we will send it to a bank that handles Diners Club card payments on a regular basis. Merchant Category Codes (MCCs)– The 4-digit number identifies the merchant is in what type of business, like an online clothing store or a SAAS merchant, where the transaction is more likely to go to banks that regularly approves transactions of similar type. Currency– Not every acquirer processes different currency codes. So the next step is to determine which currency is converting better at which bank and send it to the one most likely to approve. Geography of the Shopper– If the acquiring bank is in the same country as the shopper, the transaction is likely to be sent to a bank in that region. If you only have a U.S. legal entity, we will use the above rules to look for the most appropriate bank in the U.S. Have more questions about global credit card processing? Visit ipaydna.biz in case of any further queries. We offer the best and most secured payment systems to make all your online transactions conveniently. iPayDNA is widely known for its excellent credit card processing solutions that are fruitful for every online business.