Payment 101:
Payment Aggregation & Reconciliation

The ability to access and analyse real-time payment information is vital to business success. But the sheer volume of transactions and the need to capture data from a variety of sources presents can be a logistical nightmare. Payment Orchestration is here to help gather data and give you the insights needed for your business to thrive.

Data aggregation can be broken down into two parts: consumer permission and financial data aggregation.

The  consumer permission refers to the fact that consumers should consent to the process and provide the necessary credentials for their bank. In return, they expect security, privacy, transparency in the use of their data, and some form of benefit.

The second component, financial data aggregation, consists of the financial data collected from thousands of sources, including banks, credit unions, credit card platforms, investments, mortgage companies and other payment providers.

Data reconciliation, meanwhile, is a verification process where target data is compared against the original source data to ensure the data has been transferred correctly.

There are three steps in the data aggregation process:

  1. Raw data is extracted from one or multiple sources.
  2. The extracted data is processed by the tools within a database, aggregation software, or middleware to get rid of duplicates and inaccurate data. At this point, various functions apply to provide the requested result.
  3. Presentation is the final step, displaying the results in a convenient and understandable format.

Why it matters

Data is the biggest asset for businesses today, but without proper organisation, segmentation, and understanding, it’s essentially useless. The problem for many merchants, especially those with omnichannel sales, is the more sales channels you have, the more data you need to analyse.

Centralised transaction reconciliation and payment settlement are key principles of Payment Orchestration. As a single, centralised hub for all a merchant’s payment methods and payment providers, a Payment Orchestration Platform (POP) provides a single hub for monitoring and managing consolidated transaction reports across all the merchant’s service providers.

Our Velocity platform is a great example of data visibility. It features a real-time dashboard that gives users access to real-time and trending data from all digital payments and monitors payment transactions. Our customers also benefit from customised reporting: they simply define the reports they want to receive automatically, with all the KPIs and payment data needed by the market, channel, payment provider, payment methods and transaction type.

Reconciliation to reduce fraud

As well as providing the valuable insights you need to help your business grow, harnessing data properly has the added benefit of tackling fraud.

This year we teamed up with Cybersource, a Visa solution and recognized worldwide leader in payments management, to provide our merchants with a holistic solution for fraud management capable of aggregating transaction data across multiple acquirers.

It means our merchants enjoy best-in-class fraud management through Cybersource Decision Manager, one of the world’s largest fraud detection radars – which uses machine learning to support merchants by automatically classifying transactions as good, bad, or suspicious.

We once again find ourselves in a time of economic uncertainty, and more than ever businesses need to make insightful decisions to implement the most efficient payment strategy.

With the help of Payment Orchestration, transactions are intelligently routed and monitored in real-time, so merchants can analyse performance and use data to cut costs, boost acceptance rates, and simplify operations via automated reconciliation.

This week we’ve touched on fraud prevention, but the next blog will take a deeper dive into the topic, and explain how Payment Orchestration can act as a fraud prevention tool, helping businesses to manage both existing and potential fraud problems.

Boost revenue and simplify operations with our Payment Orchestration solution

Elevate your business with our Payment Orchestration Platform. Streamline operations, access global providers, and optimise processing times. Benefit from intelligent routing, fraud prevention, and real-time analytics. Request a demo to revolutionise your payment systems.