Automated Dispute Resolution Server for Electronic Payments
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Solution Overview
Problem
Current credit card dispute resolution processes are inefficient and costly for merchants and card issuers due to the lack of direct involvement in the resolution process, leading to increased complexity and time 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, while declining credit requests when parameters are not met, utilizing a dispute resolution server connected to card issuers' processing systems for quick and efficient dispute resolution across multiple electronic payment networks.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If cardholders contact merchants directly to resolve billing disputes, then the resolution process is more efficient, but this solution is not always feasible when cardholders go directly to card issuers
Solution Approach 1:
The patent introduces an automated dispute resolution system that acts as an intermediary between cardholders and merchants. When cardholders contact card issuers directly, the system automatically generates dispute resolution requests, retrieves transaction data from merchants via API calls, and facilitates resolution without requiring direct cardholder-merchant contact, thus maintaining efficiency while accommodating direct issuer contact
Solution Approach 2:
The system implements automated dispute resolution where the card issuer's system automatically retrieves transaction information from merchants, processes dispute requests, and resolves disputes without manual intervention. This self-service automation maintains high efficiency even when cardholders bypass merchants and contact issuers directly
2Reliability
If card issuers manually investigate and resolve disputes, then thorough investigation is possible, but substantial time and resources are expended
Solution Approach 1:
The system automates the dispute investigation process by automatically retrieving transaction data from merchants through API integrations, analyzing the data against dispute criteria, and making resolution decisions without manual investigator involvement. This maintains reliable dispute resolution while dramatically reducing time and resource expenditure
Solution Approach 2:
The patent replaces manual mechanical investigation processes with automated electronic systems that retrieve, analyze, and resolve disputes through computerized workflows. This substitution maintains investigation thoroughness through systematic data analysis while eliminating the time-consuming manual processes
3Ease of operation
If the merchant is not directly involved in the resolution process, then cardholder convenience is improved, but the complexity and expense of the resolution process increases
Solution Approach 1:
The automated dispute resolution system serves as an intermediary that handles all communication and data exchange between cardholders and merchants. The system automatically retrieves transaction data, processes disputes, and resolves issues without requiring merchant involvement in the interaction, maintaining cardholder convenience while managing complexity through automation
Solution Approach 2:
The system implements self-service automation where the dispute resolution infrastructure automatically manages the entire process including data retrieval, analysis, and resolution. This eliminates the need for complex manual coordination with merchants while maintaining cardholder convenience through direct issuer contact
Data Source
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AI summary
Described herein is partner-based method and device for resolving inquiries or disputes concerning a transaction between the customer and a merchant that is affiliated with a partner platform. For example, the method may involve receiving, at the partner platform, an inquiry/dispute event notification. The method may involve obtaining data points about the transaction and locating the transaction based on the data points. The method may involve refunding the transaction or canceling future or recurring charges associated with the transaction.