Category-Level Data Structure for Transaction Authorization Requests
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Solution Overview
Problem
Current electronic payment processing networks face inefficiencies in data transmission and computation due to the need to transmit detailed item-level information for each transaction, which hampers communication efficiency and computing performance.
Innovation Solution
Implementing a category-level data structure for transaction authorization requests, where information is aggregated by pre-defined item categories, reducing the amount of data transmitted and shifting computation tasks from centralized devices to transaction terminals.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If detailed item-level information is transmitted for each transaction, then measurement precision and completeness of transaction data is improved, but communication efficiency and computing performance deteriorate due to large data volume
Solution Approach 1:
The patent segments item information by grouping individual items into categories (e.g., grocery, electronics, clothing). Instead of transmitting detailed information for each individual item, the system transmits category-level summaries that aggregate multiple items. This segmentation reduces the volume of transmitted data while preserving essential transaction information for processing authorizations, rewards, and discounts.
2Measurement precision
If detailed item-level information is transmitted for each transaction, then measurement precision and completeness of transaction data is improved, but device complexity and processing overhead worsen due to centralized computation requirements
Solution Approach 1:
The patent segments the computation task by performing aggregation at the transaction terminal before transmission. This shifts the computational burden from centralized processing systems to distributed terminals, reducing the complexity and processing overhead of centralized devices while maintaining data completeness through structured category-level information.
Solution Approach 2:
The patent applies preliminary action by aggregating item information into categories at the transaction terminal before the data is transmitted to the authorization system. This pre-processing step reduces the complexity of subsequent centralized computation while ensuring that essential transaction information is preserved for rewards and discount processing.
3Productivity
If aggregated category-level information is transmitted, then communication efficiency and computing performance are improved, but measurement precision and ability to apply item-specific benefits deteriorates
Solution Approach 1:
The patent applies local quality by maintaining the ability to apply item-specific benefits within the aggregated category structure. The system preserves sufficient information at the category level to enable targeted rewards and discounts for specific item types while communicating efficiently. This allows different parts of the data structure to serve different functions: aggregation for communication efficiency, while retaining specificity for benefit application.
Data Source
AI summary
A system and method includes an authorization request message configured with information about transaction amounts of items aggregated according to item categories and applicable rates for the items in the respective categories. Based on the information provided in the authorization request, a transaction handler is configured to compute a modified transaction amount for the transaction by reducing the transaction amount of items in one or more of the categories, without reducing the transaction amount(s) of items in one or more other categories, and computing a total transaction amount based on the reduction and the applicable rates.