Infrastructure
Payment Orchestrator
Definition
Payment Orchestrator a platform that sits between merchants and multiple PSPs/acquirers, providing intelligent routing, unified integration, and centralized management. Orchestrators enable routing by geography, card type, or performance; automatic failover; and token portability between processors. Examples include Spreedly, Primer, and Gr4vy. Makes sense for merchants using multiple processors at scale.
Related Terms
Payment Service Provider (PSP)
A company that provides payment processing services to merchants, typically bundling acquiring, processing, and gateway services into a single offering. PSPs like Stripe, Adyen, and Checkout.com handle the entire payment stack, simplifying integration for merchants. PSPs may operate as PayFacs (aggregating merchants under their own MID) or facilitate direct merchant accounts with acquirers.
Smart Routing
Dynamically routing transactions to different processors based on rules to optimize approval rates, costs, or both. Routing criteria include card geography, card type, transaction amount, processor performance, and cost. Requires multi-acquirer setup or orchestration platform. Can improve approval rates by 2-5% and reduce costs through optimal processor selection.
Tokenization
Replacing sensitive card data with a non-sensitive token that can be stored safely. Tokens are useless if stolen - they can only be used by the merchant they were created for. Enables card-on-file functionality without storing actual card numbers. Reduces PCI scope significantly. Network tokens (from Visa/MC) offer additional benefits including automatic card updates.
Need help navigating payment terminology?
We speak fluent payments. Let us translate for your business.
Talk to Us