# Payment Processing Flow This diagram illustrates the sequence of transactions initiated on any platform, like an e-commerce website, and follows through to the final processing by the bank. The steps include: ### **1-Transaction Initiation** Starts from an external channel, like an e-commerce site. ### **2-Smart Router** Upon receiving a transaction, the Smart Router assesses various criteria to select the most suitable payment gateway (PG) based on pre-configured rules. * ### Recommended Routing Process: 1. **Database of MIDs**: Repository where Merchant Identification Numbers (MIDs) are stored for transaction processing. 2. **Strategy (1)** [**Multi-Selection**](#multiple-selection-strategy-inclusive-strategy): Allows selecting multiple MIDs simultaneously for efficiency. 3. **Strategy (2)** [**Single**](#single-selection-strategy-exclusive-strategy)**/**[**Multiple Selection**](#multiple-selection-strategy-inclusive-strategy): Selection of either one or multiple MIDs. Depending on the choice: * Multiple MIDs lead to a repeated selection process. * A single MID moves directly to the final step (6). 4. **Repetition of** [**Multiple Selection**](#multiple-selection-strategy-inclusive-strategy) **Process (n-1) Times**: If multiple MIDs are selected, this iterative process repeatedly refines the choices. Each iteration assesses the MIDs against the configured [Strategy](#strategies), narrowing down the selection. 5. **Strategy (n)** [**Single Selection**](#single-selection-strategy-exclusive-strategy): Finalizes the selection to one MID, ensuring it fits the transaction requirement. 6. **Pass the Selected MID**: The chosen MID is forwarded to the transaction processing system to complete the transaction.

### **3-Payment Gateway** The Smart Router directs the transaction to the chosen PG. ### **4-Bank Processing** The selected PG then processes the payment by forwarding it to the associated bank.