Volume Based Routing

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Overview

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Key Benefits

• Load Distribution: Spread transaction volume across multiple processors
• Risk Management: Avoid over-reliance on a single payment processor
• Cost Optimization: Balance processing fees by leveraging different processor rates
• Performance Management: Maintain optimal processing speeds by distributing load
• Redundancy: Ensure continued operations if one processor experiences issues

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How Volume Based Routing Works

• Processor A: 60% of transactions
• Processor B: 30% of transactions
• Processor C: 10% of transactions

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Configuration Steps

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Step 1: Access Volume Based Configuration

1. Navigate to the Smart Router section in your dashboard
2. Locate Volume Based Routing in the routing options
3. Click on Setup to begin configuring Volume Based routing

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Step 2: Define Rule Details

1. Name: Enter a descriptive name for your volume routing rule
   • Example: “Primary Volume Distribution” or “Q1 2024 Volume Split”
2. Description: Add a detailed description of the rule’s purpose
   • Include business rationale and expected outcomes
   • Note any specific conditions or timeframes

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Step 3: Configure Volume Distribution

1. Select Processors: Choose which payment processors to include in the distribution
2. Set Percentages: Assign percentage values to each processor
3. Validation: Ensure total percentages equal 100%
4. Preview: Review the distribution before saving

Stripe: 50%
Adyen: 30% 
PayPal: 20%
Total: 100%

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Step 4: Save and Activate

1. Save Rule Only:
   • Saves the configuration without activating
   • Useful for preparing rules for future use
   • Allows testing and validation before going live
2. Save and Activate:
   • Immediately applies the rule to all incoming payments
   • Replaces any currently active volume routing
   • Starts distributing transactions according to new percentages

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Step 5: Monitor and Manage

• Active Algorithm: View currently active volume routing configuration
• Historical Rules: Access all previously configured routing algorithms
• Performance Metrics: Monitor distribution effectiveness and processor performance

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Best Practices for Volume Distribution

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Strategic Allocation

• Choose your most reliable and cost-effective processor
• Typically handles 40-60% of volume
• Should have excellent uptime and support

• Allocate 20-40% based on specific strengths
• Consider geographic expertise or payment method specialization
• Balance cost with performance requirements

• Usually handles 5-20% of volume
• Serves as redundancy and testing ground
• Can be used for new processor evaluation

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Common Distribution Strategies

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Advanced Configuration Options

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Conditional Volume Routing

• Different volume splits for cards vs. digital wallets
• Separate distributions for credit vs. debit cards

• Regional processor preferences
• Local vs. international transaction handling

• Different splits for high-value transactions
• Micro-payment vs. standard payment routing

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Time-Based Variations

• Adjust processor allocation based on time of day
• Route to processors with better 24/7 support during off-hours

• Modify volume distribution for peak shopping periods
• Increase allocation to processors with better high-volume handling

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Monitoring and Analytics

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Key Performance Indicators

• Target vs. Actual: Compare intended percentages with actual distribution
• Volume Variance: Track deviations from planned allocation
• Time Period Analysis: Monitor distribution over different timeframes

• Success Rates: Compare performance across different processors
• Processing Times: Analyze speed differences between processors
• Cost Analysis: Track total processing costs by processor

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Dashboard Metrics

• Current distribution percentages
• Transaction counts by processor
• Success rate comparisons
• Cost summaries

• Weekly/monthly distribution reports
• Processor performance trends
• Cost optimization opportunities

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Troubleshooting

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Common Issues

• Cause: Low transaction volume may cause temporary imbalances
• Solution: Monitor over longer time periods for accurate distribution
• Prevention: Consider minimum transaction thresholds for activation

• Cause: One processor experiencing outages or high failure rates
• Solution: Implement automatic failover to maintain service
• Prevention: Set up monitoring alerts for processor performance

• Cause: Configuration errors or system bugs
• Solution: Verify configuration and contact support if needed
• Prevention: Always validate percentages total 100% before saving

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Performance Optimization

• Weekly: Check for any significant deviations from target distribution
• Monthly: Analyze processor performance and cost effectiveness
• Quarterly: Review and adjust percentage allocations based on business needs

• Increase allocation to best-performing processors
• Decrease allocation to processors with high failure rates
• Adjust based on seasonal business patterns

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Integration with Other Routing Rules

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Hierarchical Routing

• Geographic routing takes precedence
• Payment method routing overrides volume rules
• Risk-based routing for high-risk transactions

• Volume routing applies when primary rules don’t match
• Default fallback handles cases where volume routing fails

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Rule Priority Management

1. Geographic Rules: First priority for location-specific requirements
2. Payment Method Rules: Second priority for method-specific routing
3. Volume Rules: Third priority for general distribution
4. Default Fallback: Final safety net for all other cases

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Testing and Validation

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Pre-Deployment Testing

• Test volume distribution with sample transactions
• Verify percentage calculations work correctly
• Confirm processor integration functions properly

• Compare performance with and without volume routing
• Test different percentage allocations
• Measure impact on success rates and costs

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Go-Live Checklist

• Configuration validated and percentages total 100%
• All processors tested and confirmed working
• Monitoring alerts configured
• Team trained on new routing behavior
• Rollback plan prepared if issues arise

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Support and Resources

• Complete Smart Router documentation
• Processor-specific integration guides
• API reference documentation

• Dashboard help section
• Technical support team
• Community forums and best practices

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Next Steps

1. Monitor Performance: Track distribution accuracy and processor performance
2. Optimize Allocation: Adjust percentages based on performance data
3. Expand Strategy: Consider additional routing rules for specific scenarios
4. Cost Analysis: Regular review of processing costs and optimization opportunities

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Summary

• Flexible percentage-based allocation across multiple processors
• Risk management through load distribution
• Cost optimization opportunities
• Easy configuration and management through the dashboard
• Integration with other routing strategies for comprehensive payment handling