Core ConceptsPayment Rules

Exception Rules

Handling Exceptions in Payment Processing

Overview

Exception rules in PayOS are a sophisticated mechanism that empowers merchants to tailor their payment processing strategies beyond the default configurations set by environment rules. These rules are essential for handling specific transactions that require unique processing paths, allowing merchants to optimize for cost, conversion, and risk management.

Importance of Exception Rules

  1. Customizing Payment Methods:

    • Exception rules provide the flexibility to determine which payment methods are available for specific transactions. This ensures that users are presented with the most suitable and efficient payment options based on the transaction’s context and the merchant’s strategic goals.

  2. Processor Selection and Routing:

    • Merchants can specify which processors should handle particular payments, allowing for optimization of transaction costs and compliance with regional regulations. Exception rules facilitate intelligent routing, directing transactions to the most appropriate Payment Service Providers (PSPs) or acquiring banks based on factors such as card type, transaction amount, currency, and country of origin and destination.

  3. Dynamic Processing Adjustments:

    • Exception rules enable dynamic adjustments during transaction processing, such as implementing adaptive 3D Secure. This feature enhances security and user experience by applying additional verification only when necessary, reducing friction for legitimate transactions.

  4. Risk Management and Optimization:

    • By leveraging exception rules, finance teams can conduct A/B tests, optimize payment costs, and increase conversion rates. These rules allow for precise control over transaction handling, enabling merchants to manage risk effectively while maximizing revenue opportunities.

Structure of Exception Rules

Exception rules follow a structured approach consisting of conditions and actions:

Conditions

Conditions are the criteria that must be met for the rule to be applied. They can be based on predefined variables known to the PayOS system or custom variables set by the merchant.

Predefined Variables:

  • Payer Status: Indicates whether the payer is new or existing.
  • Payer Location: The geographical location of the payer (e.g., ZAF, NGA, KEN).
  • Payment Method Type: The type of payment method being used (e.g., card, bank transfer).
  • Merchant Location: The geographical location of the merchant.
  • Amount: The transaction amount.
  • Currency: The currency used in the transaction.

Custom Variables: Merchants can also define custom fields to address specific needs, such as:

  • Last Successful 3D Secure Transaction: To determine if a transaction should avoid 3D Secure.
  • Is Blacklisted Item: To flag certain items that may require additional scrutiny.

Actions

Actions are the outcomes that occur if the conditions are met. They influence various aspects of the payment processing flow, including:

  • Available Payment Methods: Determine which payment methods should be presented to the user based on the conditions.
  • Processor Selection: Specify which processor should handle the transaction, allowing for prioritized processing paths.
  • 3D Secure Behavior: Adjust the requirements for 3D Secure based on the transaction context, such as enforcing or relaxing the 3D Secure checks.

Strategic Advantage of Exception Rules

The strategic advantage of exception rules lies in their ability to provide granular control over payment processing. By fine-tuning these rules, merchants can:

  • Run Tests and Optimize Costs: Conduct experiments to determine the most cost-effective processing paths and payment methods.
  • Increase Conversion Rates: Ensure that users are presented with the most relevant payment options, reducing cart abandonment and enhancing user satisfaction.
  • Manage Risk: Implement targeted security measures that protect against fraud while maintaining a seamless user experience.

Configuring Exception Rules

Merchants have the flexibility to configure exception rules through the merchant dashboard or via the API, with comprehensive support from our Solutions Engineers to ensure effective setup and management.

  • Dashboard Configuration: The merchant dashboard offers a user-friendly interface for setting up and managing exception rules. This approach is encouraged for its intuitive design and ease of use.

  • API Interaction: The Rules API provides robust endpoints for listing, creating, and managing rules. In particular, viewing configured rules and assessing their impact on a specific transaction is available through the Rules API.

Conclusion

Exception rules are a cornerstone of the PayOS platform, offering merchants the ability to customize and optimize their payment processing strategies. By working closely with our Solutions Engineers, merchants can ensure that their exception rules are configured to maximize efficiency and effectiveness, providing a seamless and secure payment experience for their customers.