Automated Dispute Resolution Server for Electronic Payments
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Solution Overview
Problem
Current credit card and electronic payment transaction dispute resolution processes are inefficient and costly for merchants and issuers due to cardholders directly initiating chargebacks without merchant involvement, leading to increased complexity and resource expenditure.
Innovation Solution
A system and method that allows card issuers to automatically remove cardholders from recurring payment programs and issue credits for disputed transactions, utilizing a dispute resolution server connected to card issuers' processing systems for quick and efficient dispute adjudication, including data transmission and eligibility criteria matching to determine valid disputes and issue credits or decline requests.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If cardholders directly initiate chargebacks with card issuers without merchant involvement, then cardholders can quickly dispute transactions, but the complexity and cost of dispute resolution increases significantly
Solution Approach 1:
The patent introduces an automated dispute resolution system that acts as an intermediary between cardholders and merchants. The system automatically matches disputed transactions with original transaction data, determines validity based on predetermined criteria, and processes resolutions without requiring direct merchant involvement in each dispute case. This intermediary system handles the complexity internally while maintaining simple interfaces for cardholders.
Solution Approach 2:
The system enables self-service dispute resolution by automatically processing chargebacks through predefined eligibility criteria. The automated system independently validates disputes, matches transactions, and issues resolutions without requiring manual intervention from merchants or extensive cardholder effort, thereby reducing overall system complexity while maintaining quick dispute initiation.
2Reliability
If card issuers manually investigate and resolve each chargeback dispute, then dispute accuracy can be maintained, but the time and resource expenditure increases substantially
Solution Approach 1:
The patent replaces manual mechanical investigation processes with automated electronic systems. The system automatically retrieves transaction data, matches disputed transactions with original records, applies eligibility criteria, and determines validity through computerized processes. This substitution maintains high accuracy through systematic data matching while dramatically reducing the time required compared to manual investigation methods.
Solution Approach 2:
The system implements automated feedback loops where transaction data is continuously matched against dispute claims. The system retrieves original transaction information, compares it with dispute details, and automatically determines validity based on predefined criteria. This automated feedback mechanism ensures consistent accurate decisions while processing disputes rapidly without manual intervention.
3Measurement precision
If comprehensive transaction data is collected and analyzed for each dispute, then dispute validity can be accurately determined, but the processing time and computational resources increase
Solution Approach 1:
The system performs preliminary actions by pre-collecting and storing transaction data in accessible formats before disputes arise. Transaction information is maintained in databases with structured data elements that can be quickly retrieved and matched. This preliminary preparation ensures accurate dispute validity determination is available immediately when disputes occur, without requiring time-consuming data collection during the dispute process.
Solution Approach 2:
The patent segments transaction data into discrete, matchable elements such as transaction IDs, amounts, dates, and merchant information. This segmentation allows the system to efficiently compare specific data points between disputed transactions and original records. By dividing complex transaction information into structured segments, the system achieves high accuracy in validity determination while maintaining rapid processing throughput through targeted data matching.
Data Source
AI summary
A computer-based system and method for resolving disputes between a customer and an electronic payment provider concerning an electronic transaction between the customer and a merchant, including receiving data related to the transaction in a computer; transmitting the data from the computer to a dispute resolution server; comparing the transaction data to predetermined eligibility criteria for dispute resolution in the dispute resolution server, and if the dispute resolution criteria is met, declining future transactions from the merchant for the disputing consumer; and, comparing the transaction data to predetermined eligibility criteria for transaction credit, and if the credit criteria is met, and transmitting a credit instruction for the transaction.