Credit Data Analysis Platform for Merchant Payment Acceptance
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Solution Overview
Problem
Consumers and merchants are often unaware of the payment options accepted by merchants, leading to missed opportunities for customers to use credit accounts that offer benefits, and merchants may not realize the potential revenue from accepting credit account payments.
Innovation Solution
A credit data platform that analyzes transaction data to train a merchant model, determining the likelihood of a merchant accepting credit account payments and providing users and merchants with information on accepted credit brands, limits, fees, and potential benefits, enabling users to use suitable credit accounts and merchants to assess demand for credit account payments.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If merchants provide multiple payment options, then customer payment flexibility is improved, but merchant complexity in managing payment processing is increased
Solution Approach 1:
The patent introduces a third-party service provider that acts as an intermediary between consumers and merchants. This service provider automatically determines which payment methods a merchant accepts and communicates this information to consumers, eliminating the need for merchants to manually manage and communicate multiple payment options while reducing payment processing complexity through automated handling by the intermediary service.
2Measurement precision
If consumers manually check payment options, then payment information accuracy is improved, but time consumption is increased
Solution Approach 1:
The patent enables consumers to access accurate payment option information automatically through the third-party service provider without requiring manual verification. The service provider maintains updated records of merchant payment acceptance and provides this information on-demand to consumers, ensuring accuracy while eliminating time-consuming manual checking processes.
3Ease of operation
If merchants accept more payment methods, then customer convenience is improved, but loss of information about accepted methods is increased
Solution Approach 1:
The patent implements a feedback mechanism where the third-party service provider continuously updates and maintains information about which payment methods each merchant accepts. This feedback loop ensures that payment method information remains current and accurate, preventing information loss while allowing merchants to offer multiple payment options for enhanced customer convenience.
Data Source
AI summary
A device may receive transaction data associated with a plurality of merchants. The transaction data may include a first set of transactions and, for each transaction included in the first set of transactions: data identifying a merchant and a method of payment. The device may identify, from the first set of transactions, a second set of transactions associated with a credit account method of payment from the first set of transactions. The device may train, based on the first set of transactions and the second set of transactions, a merchant model. The merchant model may be trained to: receive, as input, data identifying the merchant, and produce, as output, a measure of likelihood that the merchant accepts the credit account method of payment. The device may perform an action based on the merchant model.