Automated Transaction Negotiation System
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Solution Overview
Problem
Current systems lack real-time, automated negotiation capabilities among parties to a transaction, such as consumers, merchants, and issuers, leading to suboptimal payment mechanisms and benefits due to manual or semi-automated processes that do not fully leverage consumer preferences and prior transaction intelligence.
Innovation Solution
A system and method for real-time, automated negotiation that includes a computer application on a mobile device receiving offers from merchants, comparing benefits, and agreeing on payment mechanisms and consumer benefits, utilizing machine learning to dynamically update offers and maximize benefits for all parties involved.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If manual or semi-automated payment selection processes are used, then system complexity is reduced, but negotiation efficiency and benefit optimization deteriorate
Solution Approach 1:
The system enables automated negotiation between a computer application and merchant computer processors without requiring manual consumer intervention. The application automatically receives offers, compares benefits against stored preferences, and agrees on payment mechanisms, allowing the system to serve itself in the negotiation process.
Solution Approach 2:
The patent replaces manual consumer decision-making with an automated computer-based system that uses machine learning models and algorithms to evaluate payment offers and negotiate terms, substituting mechanical human processes with computational automation.
2Adaptability or versatility
If real-time automated negotiation is implemented, then consumer benefits and payment optimization are improved, but processing time and computational resources increase
Solution Approach 1:
Consumer benefit preferences are stored in advance in the computer application before negotiation occurs. The system pre-configures acceptance criteria, reward thresholds, and payment mechanism preferences, allowing rapid real-time comparison and decision-making during actual transactions without extensive processing.
Solution Approach 2:
The system uses machine learning models that learn from transaction outcomes and consumer behavior patterns, continuously improving negotiation strategies and benefit optimization based on feedback from actual transaction results and consumer preferences.
Data Source
AI summary
A method for real time negotiation among parties to a transaction may include (1) a computer application executed by a computer processor on a mobile electronic device receiving, from a merchant computer processor at a merchant computer system, an offer to conduct a transaction using a first payment mechanism accepted by the merchant, the offer comprising a first consumer benefit; (2) comparing the first benefit to at least one consumer benefit preference; (3) automatically presenting a second payment mechanism associated with a second consumer benefit or a modification to the first consumer benefit; and (4) agreeing on an agreed payment mechanism and an agreed consumer benefit, wherein the agreed payment mechanism is the first payment mechanism or the second payment mechanism, and the agreed consumer benefit is the first consumer benefit, the second consumer benefit, or the modification to the first consumer benefit.