Multi-Channel Card Settlement for Dynamic Fuel Pricing

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Solution Overview

Problem

Existing fuel purchasing systems are limited by POS-driven pricing models that lack flexibility for merchants and visibility for purchasers, and physical card payment networks do not provide the ability to utilize rich data for dynamic pricing or transaction processing.

Innovation Solution

A multi-channel transaction settlement system using a remote computing entity that processes transactions through a first payment network and a separate communication network, allowing for dynamic pricing adjustments and settlement of transaction differences, including the generation and transfer of cost data to merchants through a second payment channel.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If POS-driven pricing models are used, then transaction processing is simplified, but merchant flexibility in modifying pricing models is limited

Engineering Contradiction:

Improvetransaction processing simplicityVSAvoidmerchant pricing flexibility

Core Design Contradiction:

Ease of operationVSAdaptability or versatility

Solution Approach 1:

The payment channel is segmented into multiple independent components: a first payment channel for authorization and a second payment channel for settlement. This segmentation allows the pricing model to be decoupled from the payment processing, enabling merchants to dynamically modify pricing through the second channel without affecting the simplicity of the first channel's transaction processing.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The system introduces dynamic pricing capabilities by allowing merchants to modify pricing models in real-time through the second payment channel. The pricing parameters become dynamic rather than static, enabling flexible adjustments based on market conditions while maintaining operational simplicity through automated processing.

Inventive Principle:

Principle #15Dynamics

2Reliability

If physical card payment networks are used, then payment processing is standardized, but flexibility for merchants to provide and update pricing data is limited

Engineering Contradiction:

Improvepayment processing standardizationVSAvoidpricing data flexibility

Core Design Contradiction:

ReliabilityVSAdaptability or versatility

Solution Approach 1:

The payment network functionality is segmented into two distinct channels: the first channel maintains standardized authorization processing, while the second channel provides flexible pricing data transmission. This segmentation preserves the reliability of standardized processing while enabling pricing adaptability through the specialized second channel.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The second payment channel acts as an intermediary between the merchant and the pricing system, allowing flexible pricing data to be transmitted and updated without compromising the standardized payment processing of the first channel. This intermediary enables merchants to provide and update pricing data with full flexibility.

Inventive Principle:

Principle #24Intermediary (Mediator)

3Loss of information

If rich data is provided to fuel purchasers, then transaction visibility is improved, but the ability to use physical cards for transactions is limited

Engineering Contradiction:

Improvetransaction visibilityVSAvoidphysical card transaction capability

Core Design Contradiction:

Loss of informationVSEase of operation

Solution Approach 1:

The data transmission is segmented into two channels: the first channel handles the physical card transaction authorization with standard data, while the second channel provides rich additional data to the purchaser. This segmentation allows both physical card transactions and enhanced data visibility to coexist without limiting either capability.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The system adds another dimension to the data transmission by introducing a second payment channel that carries additional rich data alongside the standard transaction data. This dimensional expansion allows physical card transactions to maintain their simplicity while purchasers receive enhanced information through the additional data channel.

Inventive Principle:

Principle #17Another dimension (Dimensionality change)

4Adaptability or versatility

If multiple payment channels are used, then pricing flexibility and transaction visibility are improved, but system complexity increases

Engineering Contradiction:

Improvepricing model flexibilityVSAvoidpayment channel structure

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The complex system is segmented into two distinct payment channels with specific functions: the first channel handles authorization and the second handles settlement and data transmission. This segmentation organizes the complexity into manageable, purpose-specific components, making the overall system more manageable despite the multiple channels.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The second payment channel serves multiple functions: it transmits pricing data, processes settlement, and provides rich data to purchasers. This multi-functionality consolidates several operations into a single channel, reducing the overall system complexity despite having multiple channels.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Data Source

PatentUS20250363475A1Card-based transaction processing and settlement using multiple electronic payment channels

Publication Date: 2025.11.27 MUDFLAP INC

AI summary

Electronic settlement of transaction can be provided using multiple payment channels. A first payment channel using a payment network for submission of transaction data through the payment network and for reimbursement of a merchant using the payment network. A second payment channel uses a network separate from the payment network, and is used for transferring funds between the merchant and an issuer, without using the payment network. The funds transferred using the second payment channel are provided for settlement of costs payable by the merchant for a portion of the transaction, to accommodate for a discount calculated and provided by the issuer to a purchaser involved in the transaction, on behalf of the merchant.