Enhancing Revenue Growth with Payment Cascading Technology

When financial technologies are driving modern online payment trends, advanced systems are a must-have to remain competitive. Payment cascading is a key feature of modern payment systems that contribute to revenue growth.

Cascading payments technology comes into play after the transaction has been directed to the Merchant Identification Number (MID) or acquirer, but, for some reason, the payment did not pass through. Its primary function is to automatically reroute the payment to an alternative MID or acquirer until the transaction is successfully completed, all within a single payment attempt without changing the payment method.

The Powerful Duo of Smart Routing and Payment Cascading

Smart routing technology, to which we dedicated the previous issue, works synergistically with payment cascading. Smart payment routing directs each transaction to the most appropriate payment solution based on user-defined parameters. By identifying a group of suitable banks or payment providers for each transaction type, smart routing ensures multiple potential solutions are available. If one provider declines the payment, cascading technology gets into play and automatically transfers it to another provider based on the specified parameters.

Would you like to know how payment cascading can benefit your business? You're welcome to contact our experts . They will gladly analyze your business case in detail and answer your questions!

How Does Cascading Work With Different Decline Types?

Hard declines that occur due to stolen or expired cards cannot be resolved through cascading.

Soft declines, caused by temporary issues with the acquirer or issuer, can be rerouted to another Merchant Identification Number (MID) for approval, enhancing transaction completion and the user experience.

Cascading technology can also work for 3D Secure (3DS) transactions. Advanced providers like Akurateco offer cascading for 3DS MIDs, requiring users to only re-enter their 3DS password in case their transaction experiences a soft decline. This way, the payment will be successfully completed without the need for a customer to re-enter all of their payment information once again.

Payment Cascading Benefits

• Decreased number of failed transactions: By rerouting failed transactions to alternative payment channels, cascading improves approval rates and prevents cart abandonments.
• Enhanced user experience: The technology ensures a seamless payment flow, delivering a better experience for both merchants and customers.
• Revenue growth: With an increased number of approved transactions, merchants save on Interchange+ fees for declined transactions and enjoy higher customer retention and a positive brand image.

At Akurateco , we have developed our payment cascading to work efficiently and seamlessly, considering users’ needs, including 3DS MIDs. As a result, some of our clients have grown their payment conversion rate by up to 30% Struggling to achieve more resilient, efficient, and customer-centric payment operations? Read about the potential of cascading payments for your business growth in the full article .