Optimized payment switch architecture for modern-day payment processes

1. Optimized payment switch architecture for modern-day payment processes

2. Since payments today need to be processed through a complex ecosystem, sticking to legacy payment systems and processes can no longer be in the benefit of the organisation. The need of the hour is the adoption of smart and dynamic payment switch architecture that helps businesses to optimize and offer the best quality end-to-end payment facilities.

3. What is payment switch architecture? A payment switch helps route multiple transactions dynamically between multiple payment service providers and acquirers. The benefits are plenty, the foremost being the adaptability of the system to adjust as per the real-time environment thereby providing customers with an unequivocally superior experience. The key objective behind the use of a payment switch is to provide a sound and resilient platform that facilitates varied payment services accompanied by high throughput. The modern-day payment structure involves varied technical components and complex framework – it is no more about switching between transactions that involved simply authorization and processing of credit cards and debit cards. Services like wallet-based transactions, redemption of loyalty points under loyalty programs, VAS, etc. have become essential elements of the payment process today.

4. Also, aspects related to detecting fraudulent transactions, integration of Point-of-Sale and ATMs, reconciliation of payments done and received at the payment processor end and at the merchant’s end, currency conversions at the ever0changing exchange rates are all additional aspects that need to be addressed well in the modern payment system. All this and more make the designing of the payment switch architecture complicated and technically challenging. The other challenging features that need to be addressed are: the architecture needs to be one that ably supports the non-functional requirements of the switch,

5. should be able to handle multiple and huge traffic of ATMs and POS devices concurrently has to be resilient enough so that it does not crash under demanding situations thereby resulting in financial losses. A payment switch architecture needs to be such today that it works smartly helping optimize payment processes, takes the complexity out of the payment system, has user-friendly interfaces and makes use of advanced technology so that it helps in the growth of the business.

6. What is Loan Originating System (LOS)? Loan Originating System is typically used by banks, financial institutions and money lenders that helps them handle the loan processing functionalities. Loan origination is a crucial decision of the organization. Using the right system helps in taking better, accurate, quicker and value-based decisions. It needs to be ensured that the LOS is a flexible, adaptable and highly configurable system that helps with cost-effective credit risk assessment and management. Such a system will be designed and implemented to facilitate a streamlined and seamless process of decision- making pertaining to loan origination.

7. While undoubtedly the computerized loan originating system made with modern technology and implemented with state-of-the-art infrastructure will for sure automate the entire process, it will also play a key role in risk assessment processes that are complex and sophisticated while helping strategize commercial lending and consumer lending in the most optimized manner. Such a system will work faster thereby reducing costs pertaining to loan processing. Source url https://dailygram.com/index.php/blog/592135/optimized-payment-switch-architecture-for-modern-day-payment-processes/