Coupon Validation Using Positive Databases for Fraud Detection
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Solution Overview
Problem
Conventional electronic coupon validation methods are reactive and inefficient, leading to lost revenue for retailers and manufacturers due to fraudulent or invalid coupons being identified only after they have been received and logged in a database.
Innovation Solution
A system that proactively validates coupons by comparing encoded data in machine-readable coupons to a primary positive coupon database containing valid coupon data, using a computing system with a processing module to parse and match coupon data elements, and determine validity based on manufacturer association, expiration dates, and dynamic fields, with secondary databases for specialty coupons.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of energy
If conventional reactive validation methods are used, then implementation complexity is low, but revenue loss increases due to inability to detect fraudulent coupons proactively
Solution Approach 1:
The system performs preliminary validation by comparing coupon data against a pre-established database of valid coupons before the sales transaction is completed. This proactive approach identifies fraudulent coupons in advance, preventing revenue loss while maintaining operational efficiency through automated database comparison.
2Reliability
If proactive validation using positive coupon databases is implemented, then fraudulent coupon detection improves, but system complexity and data storage requirements increase
Solution Approach 1:
The system creates a digital copy or representation of valid coupon data in a database, allowing rapid comparison against actual coupons presented at checkout. This copying approach enables efficient validation without requiring complex analysis, simply matching the presented coupon against the stored valid coupon patterns.
3Loss of time
If conventional reactive methods are used, then system simplicity is maintained, but detection timing is delayed causing revenue loss
Solution Approach 1:
The validation system operates continuously during the sales transaction process, performing database comparisons in real-time as coupons are presented. This continuous validation action eliminates delays associated with post-transaction review, maintaining sales efficiency while ensuring immediate detection of fraudulent coupons.
Data Source
AI summary
In some embodiments, a system for electronically validating coupons comprises a primary positive coupon database containing positive coupon data. The positive coupon data relates to one or more coupons known to the valid. The system further includes a computing system comprising a control circuit configured to execute a processing module that, when executed, receives electronic coupon data from a coupon comprising a machine-readable code, parses the electronic coupon data, compares the parsed electronic coupon data to the positive coupon data in the primary positive coupon database, and determines whether the coupon is valid by determining whether there is a match between the parsed electronic coupon data and the positive coupon data, and determining whether the coupon has expired based on an expiration date of the coupon contained in the parsed electronic coupon data and an identified expiration date.