Routine Engine by NORBr - The Challenge of Payment Routing - Great Scott! Fallback to success with Recover AI

Boost your payment success with Recover AI

26 September 2023 in Blog

by Ludovic Plisson

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E-commerce is soaring, driven by new consumer habits and tech advances, raising the stakes significantly. Forecasts estimate that the e-commerce market will reach dizzying heights, surpassing $6 trillion in less than five years. It’s not about being online anymore, but optimizing online operations to draw and keep demanding customers.

Imminent challenges for online merchants

However, the picture is not all rosy. Here are the main obstacles that online merchants must overcome:

  • High failure rates: Up to 20% of online transactions fail, causing major losses for merchants.
  • Cart abandonment by customers: Payment failures frustrate customers, leading to cart abandonment and lower conversion rates.
  • Increased operational costs: The cost of manually managing failed payments is not only high but also inefficient.
  • Fraudulent transactions: Online fraud is a growing problem. The challenge is to filter out fraudulent transactions without creating false positives that could deter legitimate buyers.
  • Inconsistent user experience: Different PSP interfaces lead to inconsistent user experiences, confusing customers with various payment methods and layouts.

Best practices to reduce failures

Addressing these challenges requires a multi-faceted approach:

  • Intuitive payment experience: Nothing is worse for a customer than getting lost in a poorly designed payment funnel. A clear user interface, with visual and textual cues, can greatly improve the shopping experience.
  • Diverse payment methods: The key is to offer a range of payment methods to appeal to the widest audience. A variety of options increases the chances of conversion.
  • Sophisticated anti-fraud solutions: Implementing intelligent security measures can help prevent fraud while minimizing unjustly blocked transactions.
  • Intelligent transaction routing: Proper routing based on parameters like geographical location, card type, etc., can significantly reduce costs and failure rates.
  • Automated retry mechanisms: Retry systems (or “payment fallback“), like those offered by Recover AI, automatically retry declined transactions, increasing the chances of success, and serving as a perfect segue into our next point.

Deep dive into Recover AI

NORBr is proud to present Recover AI, our revolutionary solution designed to address these challenges. Here’s how it works in detail:

  1. Universal tokenization: The first step is to “universalize” the customer’s payment information. Universal tokenization converts sensitive data into secure tokens, ensuring smooth, secure transactions across various PSPs. 
  2. Initial routing via the routing engine: Our Routing Engine, which relies either on NORBr’s Smart Routing functionality or on rules manually added by the e-merchant, directs the transaction to the PSP most likely to process it successfully. The choice is made based on various criteria such as currency, geolocation, or credit card type. 
  3. Real-time analysis: If the initial transaction fails, Recover AI immediately kicks in to assess the cause of the failure. Is it due to a reached credit limit, a network issue, or another factor? This analysis is crucial for the next step. 
  4. AI-based prediction: At this stage, our AI-powered engine analyzes historical data and market trends to predict the alternative PSP most likely to successfully process the transaction. 
  5. AI-powered intelligent fallback: Following the analyses, Recover AI then re-routes the transaction to an alternative PSP identified during the prediction phase, thus increasing the chances of success. 
  6. Real-time notification and adjustment: The system instantly informs the merchant of changes and adjustments made, allowing for quick reactions in case of new anomalies or opportunities. 
  7. Tracking and confirmation: Finally, the transaction is tracked until its completion. A detailed report is generated, showing the various stages.


Fallback analyze

Unparalleled advantages of Recover AI

  • Improved success rates: One of the main advantages of Recover AI is its ability to significantly improve payment success rates. By using artificial intelligence, the system analyzes a multitude of real-time variables to determine the best route for each transaction. This tailored approach reduces failures related to technical issues or incompatibilities, thereby optimizing transaction conversion rates.
  • Seamless and pleasant User Experience: Recover AI’s smart automation ensures a smooth user experience. By reducing frictions related to payment failures, customers enjoy a more comfortable shopping journey and are more likely to complete their purchases.
  • Optimized cost per transaction: Recover AI not only increases transaction success rates but also optimizes associated costs. By routing transactions via the most economical routes while ensuring a high level of success, merchants can realize significant savings on payment processing fees.
  • Risk reduction and proactive fraud prevention: The AI integrated into Recover AI also provides advanced fraud detection features. By analyzing behaviors and transactional data, the system can proactively identify and block suspicious activities, thereby minimizing risks and protecting both merchants and customers.
  • Smart automation for increased efficiency: The power of AI allows Recover AI to automate complex processes in milliseconds. This enables handling a large volume of transactions without sacrificing the quality of service. This automation also frees up human resources to focus on more strategic tasks while ensuring a high level of performance and reliability.

The future of payments has arrived

Recover AI significantly enhances online payment management using AI and customer focus, setting new standards in reliability and efficiency. NORBr’s approach with Recover AI focuses on practical, reliable solutions in online payments, leveraging AI for better customer experiences.

It’s time to join the NORBr and give your business the competitive edge it deserves.

Recover AI is available on NORBr Stack and NORBr Infra.

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