Optimizing Payment Approvals: Dynamic Programming Approach
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© 2024 by IJCTT Journal
Volume-72 Issue-7
Year of Publication : 2024
Authors : Manasa Gudimella, Aditya Gudimella
DOI :  10.14445/22312803/IJCTT-V72I7P105

How to Cite?

Manasa Gudimella, Aditya Gudimella, "Optimizing Payment Approvals: Dynamic Programming Approach," International Journal of Computer Trends and Technology, vol. 72, no. 7, pp. 32-52, 2024. Crossref, https://doi.org/10.14445/22312803/IJCTT-V72I7P105

Abstract
This paper introduces a smart payment system designed to optimize the selection of payment service providers for each transaction, aiming to increase payment approval rates using dynamic programming. This solution is applicable to any business that processes payments, as an increase in overall approval rates can enhance cash flow and reduce payment-related costs. To ensure payment system reliability and avoid single points of failure, transactions are distributed among providers within specified thresholds, thereby balancing the traffic allocation. This factor is integrated into the optimization model. Through simulated data, the proposed solution demonstrates its effectiveness in increasing transaction approval rates by employing a smart optimization policy that selects actions in each state to maximize total rewards. The effectiveness of the presented approach is demonstrated by comparing different strategies; the results show that revising the traffic allocation daily can improve the overall reward by 8.1% for simulated data.

Keywords
Dynamic Programming, Payment Optimization, Smart Payment Routing .

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