Automated Merchant Boarding System for Payment Processing
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Solution Overview
Problem
The merchant boarding process for integrating new merchant accounts and POS terminal systems into enhanced payment processing systems is complex, time-consuming, and lacks automation, leading to inefficiencies and potential disruptions in payment processing.
Innovation Solution
The implementation of an expedited automated merchant boarding system that includes a merchant point of sale terminal system and a remote enhanced payment management system, which automates the boarding process by recording pre-boarding test results, assigning IDs, tokenizing archival payment transactions, and enabling access to selected payment management services, thereby streamlining the integration of new merchants into the payment ecosystem.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If manual merchant boarding process is used, then detailed analysis and systematic consideration can be performed, but the process becomes time-consuming and complex
Solution Approach 1:
The system performs preliminary actions by automatically executing the detailed analysis and systematic consideration steps before final merchant boarding completion. The automated system pre-validates merchant information, pre-configures payment processing settings, and pre-establishes connections, thereby maintaining reliability while reducing the overall time required for the boarding process.
2Adaptability or versatility
If traditional payment processing integration is used, then merchants can access payment services, but the integration process is complex and disruptive
Solution Approach 1:
The patent introduces an intermediary automated boarding system that mediates between the merchant's POS terminal and the payment processing network. This intermediary automatically handles the complex integration tasks including configuration, validation, and connection establishment, thereby providing payment service access while reducing integration complexity and minimizing disruption to merchants.
3Ease of manufacture
If sensitive account data is stored centrally, then data management is simplified, but security risks increase
Solution Approach 1:
The system segments sensitive account data storage and management across multiple distributed components rather than centralizing it. The automated boarding system distributes data management responsibilities to various secure locations including merchant systems, payment processors, and regulatory bodies, thereby maintaining ease of management through automated coordination while reducing security risks associated with centralization.
Data Source
AI summary
An expedited automated merchant boarding system in association with a distributed enhanced payment processing system includes a merchant point of sale (POS) terminal system and a remote enhanced payment management system (EPMS). The remote EPMS pre-boards anticipated POS terminal system components and records pre-boarding results information. The POS terminal system initiates merchant boarding by transmitting merchant account information. The remote EPMS receives merchant account information and establishes a merchant account. The POS terminal system utilizes protocol transactions including auto-boarding information to initiate auto-boarding with the remote EPMS. The remote EPMS auto-boards the POS terminal system utilizing received auto-boarding information and recorded pre-boarding results. The remote EPMS turns up selected payment management services for the merchant POS terminal system. The POS terminal system utilizes payment transactions to conduct validation of successful interoperation with the remote EPMS. The remote EPMS enables utilization of selected payment management services by the POS terminal system.