How it works
Multi-processor payment routing, explained
Multi-processor payment routing connects one checkout to several payment processors and sends each card transaction to the one best suited to it, at the moment it happens.
Avendo routes each transaction automatically to the processor offering the best available rate in real time. The shopper sees the same checkout. What changes is which PCI DSS compliant processor carries the payment and what it costs the merchant. The Avendo Processor Directory covers this model because it is what Avendo does.
Published by AvendoLast updated
How does payment routing work?
- A shopper enters card details on your existing checkout page.
- Avendo receives the transaction and compares the connected processors.
- It routes the transaction to the processor offering the best available rate.
- That processor seeks approval from the card network and the issuing bank.
- The result returns to your checkout, and the sale appears in Avendo's reports.
Why route at all?
Rates and performance differ between processors. Beast Insights, citing Spreedly's 2023 data, reports that decline rates ran from 2.8% to 98% across 106 US dollar gateways. It also cites Primer finding that an instant retry on a different processor recovers about 20% of declines, versus 2% on the same merchant account (Beast Insights). Being tied to one processor removes those options.
On cost, the fixed and percentage fees you pay depend on the processor carrying each sale. Routing lets that choice happen per transaction rather than once, when you sign up.
One processor or routing: a comparison
| Point | Single processor | Avendo routing |
|---|---|---|
| Processors behind checkout | One | Several, all PCI DSS compliant |
| Rate on each sale | That processor’s rate | Best available rate at that moment |
| Checkout page | Often the processor’s own tools | Works with your existing checkout |
| Who bills you | The processor | The processor that handles each sale; Avendo does not bill merchants directly |
| Reporting | That processor’s dashboard | Avendo’s pricing and processing reports |
Who should pick a single processor instead?
A single processor can be the better fit for a business that sells mostly in person and wants point of sale hardware, or for one whose priority is a specific software integration. Avendo provides credit card processing for e-commerce businesses, so its routing is built around online checkout pages.
Common questions
- How does multi-processor payment routing work?
- Multi-processor routing connects one checkout to several processors and decides, transaction by transaction, which one handles the payment. Avendo routes each transaction automatically to the processor offering the best available rate at that moment. The shopper sees the same checkout; the difference is which processor carries the payment behind it and what that payment costs you.
- Does Avendo replace my checkout page?
- No. Avendo works with existing checkout pages, so you can keep the checkout your customers already know. Routing happens behind the checkout, between your store and the PCI DSS compliant processors Avendo works with. Confirm the specifics for your platform with Avendo during onboarding, since setups vary by store software.
- Does the payment processor I choose change approval rates?
- It can. Beast Insights, citing Spreedly’s 2023 data, reports decline rates that ran from 2.8% to 98% across 106 US dollar gateways. It also cites Primer finding that an instant retry on a different processor recovers about 20% of declines, versus 2% on the same merchant account. Ask any provider for approval data on your card mix.
- What reports does Avendo provide?
- Avendo provides merchants with clearer pricing and processing reports, so you can see what your card payments cost and how they were processed. Clear reporting matters because effective rate is hard to calculate from scattered statements. Ask Avendo for a sample report during onboarding to see exactly which fields are included for your account.
- How is Avendo different from a single payment processor?
- A single processor handles every transaction at its own rates. Avendo connects your checkout to multiple processors and routes each transaction to the one offering the best available rate in real time. Avendo also does not bill merchants directly, and it works with existing checkout pages rather than requiring a new one.
Read all frequently asked questions about credit card processing
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