Least Cost Routing

Optimize processing fees on debit payments by routing traffic to the cheapest available debit network

Get started with Least Cost Routing

Least Cost Routing (LCR) enables merchants to minimize transaction costs by dynamically selecting the most cost-efficient debit network for each transaction. The Hyperswitch routing engine evaluates parameters like network fees, interchange rates, ticket size, issuer type, and more to automatically route transactions through the cheapest network in real time.

Pre-requisites for enabling Least Cost Routing

To get started with LCR in Hyperswitch, ensure the following setup is complete:

Step 1: Configure connectors supporting transactions through local networks

Step 2: Enable Debit Card Support

Step 3: Enable one or more local debit networks in both connector and Hyperswitch dashboards\

Steps to configure Least Cost Routing in Smart Router:

Step 1: Configure Prerequisites Ensure that connectors supporting transactions through local networks are set up with local networks enabled

Step 2: Navigate to Workflow -> Payout Routing. Under Active configuration Click on Manage for configuring Least Cost Routing:

Step 3: A popup will guide you to confirm the three prerequisites (connector setup, debit card enablement, local networks configuration). Click on Enable to activate LCR

Step 4: Once enabled, you can view Least Cost Routing as your active routing algorithm along with all previously configured algorithms on the Hyperswitch Dashboard

Supported Configuration for Least Cost Routing

Geographies:

• US

Connectors:

• Adyen

Networks

• Star

• Pulse

• NYCE

• Accel

Payment Methods

• Cards

Payment Flows

• Payments (No-3DS)

• Refunds

• Retries

Future Scope

Hyperswitch is continuously evolving its Least Cost Routing capabilities. Here’s what’s coming next:-

Configurable Debit Routing Rule Engine

Define your own custom routing logic for debit transactions based on attributes like issuer, amount, geography, and more — giving you deeper control over cost optimization Support for More Connectors and Payment Methods

Expansion beyond Adyen to additional processors, as well as broader support for payment methods beyond card-based flows (like wallets etc.) Integration with Your BIN Data Source

Plug in your proprietary or third-party BIN data to enhance network identification, especially for wallet-based payments and custom routing needs.

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