Dynamic payment routing involves the process of directing payments to the most suitable payment processor or acquirer based on factors such as cost, geographic location, currency, or risk level. It involves the use of a decision-making system and the expertise of payment professionals to evaluate and determine the optimal provider for each transaction. Dynamic routing ensures efficient and effective processing of payments. In addition to enhancing payment efficiency, payment routing provides a vital safety net for businesses in case of unexpected disruptions. For instance, if a primary payment partner encounters downtime due to technical issues or network problems, a payment routing system can automatically redirect transactions to an alternative partner.

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With dynamic payment routing, digital platforms can intelligently select the most cost-effective payment processors or acquirers for each transaction, resulting in significant cost savings and increased profitability. The right combination of processors in each market and vertical may differ, and finding the optimal mix helps to achieve the best performance. Read more about payment routing here