Automated Transaction Clearing with Anomaly Reversal
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Solution Overview
Problem
The existing dual message card processing ecosystem faces inefficiencies in the clearing process, particularly due to delayed and outdated clearing methods, which lead to integrity and logical loopholes, resulting in uncertainty and additional workload for issuers, ultimately affecting user experience.
Innovation Solution
A transaction clearing system and method that involves receiving a clearing file from a transport computer, determining the authorizing entity for transactions, transmitting a second clearing file to the authorizing entity, identifying anomaly transactions, and initiating transaction reversals for these anomalies, thereby streamlining the clearing process.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If automated anomaly detection and reversal initiation is implemented, then clearing efficiency is improved, but system complexity increases
Solution Approach 1:
The processing network computer automatically detects anomaly transactions and initiates reversals without requiring manual intervention from issuers. The system self-corrects clearing errors by identifying discrepancies and executing reversal transactions autonomously, thereby improving clearing efficiency while managing complexity through automation rather than manual processes
Solution Approach 2:
The system implements a feedback mechanism where the processing network computer monitors clearing transactions, identifies anomalies, and triggers corrective reversal actions. This closed-loop feedback system continuously improves clearing efficiency by detecting and correcting errors automatically, while the feedback control mechanisms help manage system complexity through structured monitoring and response protocols
2Reliability
If real-time anomaly detection is performed, then transaction integrity is improved, but processing time increases
Solution Approach 1:
The processing network computer performs preliminary anomaly detection during the clearing phase before final settlement. By identifying potential issues early in the process and initiating reversals proactively, the system maintains transaction integrity while minimizing the time impact, as corrections are made before transactions are fully settled and require additional remediation
3Ease of operation
If automated reversal initiation is implemented, then issuer workload is reduced, but automation extent increases
Solution Approach 1:
The processing network computer autonomously initiates reversal transactions for anomalies without requiring issuer intervention. This self-service capability significantly reduces issuer workload by eliminating manual detection and reversal initiation tasks, while the automation is contained within the processing network computer rather than requiring system-wide automation that would increase overall complexity
Data Source
AI summary
A method is disclosed. The method includes receiving, by a processing network computer from a transport computer, a first clearing file comprising data for a plurality of transactions, and then determining, by the processing network computer, an authorizing entity associated with one or more transactions from the first clearing file. The method includes transmitting, by the processing network computer to an authorizing entity computer operated by the authorizing entity, a second clearing file including data for the one or more transactions, determining, by the processing network computer, that the one or more transactions include one or more anomaly transactions, and initiating, by the processing network computer, one or more transaction reversals with respect to the one or more anomaly transactions.