Routing engine

Smart Payment Routing

Directing every transaction to the PSP most likely to approve it, at the lowest compliant cost.

Smart payment routing is the part of a payment orchestration platform that decides which connected PSP should process a given transaction, based on signals like the card's BIN, the issuer's country, the payment method, PSP fee profiles, historical approval-rate performance, and real-time provider health — always applying compliance requirements first.
Inputs

What drives a routing decision

A routing engine evaluates several signals together rather than sending every transaction down a fixed path.

Card BIN

Identifies the issuing bank and scheme, including whether the card is a local rail such as Mada.

Issuer country

Affects which PSPs are licensed and best positioned to process the transaction.

Payment method

Card, wallet or bank-transfer methods each have different provider support.

Merchant currency

Influences whether FX conversion is needed and which settlement path is most efficient.

Transaction amount

Can affect fee tiers and risk thresholds applied by different PSPs.

PSP fee profile

The processing cost each connected PSP charges for that transaction type.

Historical approval rate

How well each PSP has approved similar transactions in the past.

Real-time PSP health

Whether a provider is currently available and responding normally.

3DS requirements

Whether strong customer authentication is required and which PSPs support it well.

Local scheme support

Whether a PSP is licensed and capable of processing a local rail like Mada or KNET.

FX impact

The total landed cost impact of currency conversion for a given route.

Merchant preferences

Merchant-level routing rules or constraints configured for specific markets or methods.

Priority order

Compliance first, approval rate second, cost third

Every routing decision follows the same order of priorities, so cost optimization never overrides a compliance requirement.

1. Compliance
2. Approval rate
3. Cost
Worked examples

How this plays out in practice

Saudi Mada payment

A card BIN indicates Mada, the currency is SAR, and the merchant is in Saudi Arabia. The router only considers Saudi-licensed PSPs that support Mada — an unsupported international-only PSP is excluded regardless of price — then picks the best remaining option by approval rate, cost and availability.

International card in the UAE

A Visa or Mastercard is presented in AED while the merchant bills in USD. Here there is no single dominant local rail, so the router compares connected PSPs by total combined economics: transaction fee, FX conversion cost, and approval performance, and selects the route with the best combined outcome.

Relationship to retry

Routing and retry work together

Routing picks the first attempt

Smart routing selects the PSP for the initial attempt based on the signals above.

Retry decides what happens next

If that attempt is declined or times out, the retry engine classifies the failure and decides whether a safe retry — potentially on a different, still-compliant route — is appropriate.

FAQ

Frequently asked questions

Does smart routing always choose the cheapest PSP?

No. Compliance requirements are applied first, then approval-rate performance, and cost is considered last among otherwise eligible routes.

Can routing rules be customized per merchant?

Routing logic can be configured around market, payment method and provider-performance needs at the merchant level.

Does smart routing add latency to checkout?

The routing decision happens as part of the same transaction flow and is designed to be effectively instantaneous compared with sending a transaction to a single fixed PSP.

What happens if the best PSP for a transaction is unavailable?

Real-time PSP health is one of the routing signals, so an unavailable provider is deprioritized in favor of the next best eligible, available PSP.