Protect Your Company from Payment Providers Downtime & Outages

Several high-profile FinTechs and PSPs have experienced multiple outages for card processing. Aggregators need a constant connection to multiple new endpoints. Banks, PSPs, and facilitators are implementing and opting for 24 by 7 payment options.

A number of service providers are implementing multiple online payment options. But having more providers makes the transaction process vulnerable to acquirer failures and prone to transaction failures with connectivity and security issues.

This issue will not only irritate customers but ultimately can lead to revenue loss and a damaged reputation.

And that’s where Payment Switch comes in.

What is a payment switch

Simply said, Switch is a tool that facilitates communication between different payment service providers. Switch typically provides a merchant-driven rules-based authorization and switching solution.

It dynamically routes payment transactions between multiple acquirers and Payment Service Providers. It sits at the center of the payment processing and dynamically acquires, routes, switches, authenticates and authorizes transactions across multiple payment channels.

The payment switch enables an extension of payment network by adding new payment methods and providers easily, without enormous integration costs.

Switching process

 

Payment-switch
Payment Switch

Payment switch – How it works

After the payment request is initiated, the payment switch authorizes the merchant and transaction. Based on the status of the transaction (either failure or success), it is further processed.

Switch then dynamically routes authorized payment transactions based on the rules.

These rules include routing by bin (bank identification number), routing by amount, routing by the time of the day, etc. Based on the bin identification, switch formats and sends a message to the provider, receives a back response from the provider.

It again formats the received response and returns back to the caller.

Learn Lyra Payment Switch Features

What to look for in a payment switch:

Nowadays, merchants sell on a global level with multiple acquirers, in order to provide uninterrupted service to the customer following requirements must be fulfilled by a Payment Switch.

Dynamic routing:Acceptance rates of different acquirers differ based on multiple variables, switch considers these variables as rules and use them to dynamically route the transactions, maximizing payment acceptance performance and minimizing transaction failures

Fraud Management: Every PSP should offer a perfect balance between a seamless experience and effective fraud management.

Payment Switch handles tens of thousands of transactions making it difficult to spot suspicious behavior, so in order to detect fraud, a Payment Switch must support 3DS processing and provide real-time notifications.

Extension of payment network: Multiple PSPs: Customers generally pay online with the option they are most comfortable with.

There are plenty of PSPs in the market and the number will keep increasing. Payment Switch should support integration of multiple PSPs and global acquirers minimizing the integration cost for the merchant

Security: One of the most important aspects of online/digital payments is security.

For the security of customers as well as merchants, payment Switch should be compliant with PCI DSS offering encryption and tokenization tools.

Lyra’s Payment Switch – A robust and secure switching solution

Lyra’s Payment Switch saves merchants from connectivity and security issues. Apart from debit cards and credit cards, a payment switch also processes transactions such as immediate payments, ATMs, POS, MPOS, etc.

Know Payment Switch Clearing and settlement Guide

Lyra Payment Switch Architecture

Lyra Payment-switch-architecture
Lyra Payment Switch Architecture

How Lyra’s payment switch is beneficial?

  • Lyra’s payment switch dynamically routes payment transactions between the acquirer and payment service provider revamping the transaction success rate. 
  • It encrypts sensitive payment information prior to them transmitting it to the processing bank. 
  • Easier to integrate multiple payment methods and providers, the software solution is tailor-made for customers’ requirements. 
  • With direct connectivity with card schemes, Lyra’s payment Switch also provides services like reconciliation, fraud and chargeback management. 
  • It processes all payments in real-time between the point of customer interaction and the processing system.
  • It has direct connectivity with card schemes and supports Visa, Mastercard, Maestro, and Rupay

Lyra’s Payment switch along with Lyra Payment gateway provides an independent transaction solution with fewer hops as no 3rd party software is included. This maximizes acceptance rates, improves approval rates, reduces payment processing fees. This is a sensitive system and hence Lyra constantly maintains multiple data centers to avoid downtime. Payment switch boosts financial inclusion, growth and Customer Lifetime Value.

Get started with Lyra Payment Switch

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