Dynamic Consumer Transaction Verification System
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Solution Overview
Problem
Current payment systems, particularly in remote transactions, lack effective dynamic verification processes for consumers and transactions, leading to increased fraud risks for both consumers and merchants, resulting in significant costs and inefficiencies.
Innovation Solution
A computer-implemented method and system that dynamically verifies consumers and authorizes transactions by comparing consumer transaction data with internal and external databases to determine a consumer/transaction identifier, prioritizing transactions based on risk factors, and communicating with consumers to verify the legitimacy of transactions before goods are shipped or services are provided.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If dynamic verification processes are implemented to verify consumers and authorize transactions in real-time, then transactional security is improved, but device complexity and processing time increase
Solution Approach 1:
The verification process is segmented into multiple independent modules: consumer identification verification, transaction authorization verification, and real-time validation. Each module processes specific aspects of verification separately, allowing the system to handle complex verification tasks through coordinated simple operations rather than a single complex process.
Solution Approach 2:
The system performs preliminary verification actions by pre-establishing consumer profiles, credit limits, and risk parameters before actual transactions occur. This allows the real-time verification process to focus only on validating current transaction details against pre-computed criteria, reducing the complexity of instantaneous verification decisions.
2Reliability
If real-time verification and authorization processes are implemented, then fraud detection capability is improved, but processing time increases
Solution Approach 1:
The system implements partial verification actions by selectively validating only the most critical transaction parameters (such as consumer identification, transaction amount, and merchant authorization) rather than performing complete verification of all possible transaction attributes. This partial action approach maintains sufficient fraud detection capability while significantly reducing processing time.
Solution Approach 2:
The verification system incorporates feedback mechanisms where real-time validation results immediately influence authorization decisions. Positive verification feedback allows rapid transaction approval, while negative feedback triggers immediate fraud prevention actions. This feedback loop eliminates unnecessary processing time by making verification outcomes directly actionable without requiring additional verification steps.
3Reliability
If comprehensive consumer verification processes are implemented, then transactional security is improved, but ease of operation deteriorates
Solution Approach 1:
The verification system operates in self-service mode by automatically validating consumer identities and transaction details without requiring manual intervention from consumers or merchants. The system autonomously compares transaction data against verified consumer profiles and authorization parameters, eliminating the need for consumers to provide additional verification information or undergo manual checking processes.
Data Source
AI summary
Disclosed is a computer-implemented method (100) for the dynamic verification of a consumer engaged in a transaction with a merchant (12) and authorization of the transaction. The method (100) comprises the steps of: providing a consumer transaction data set (16) including a plurality of data fields to a central credit issuer database (14); determining a processing queue (22) based upon the data contained in at least one of the data fields in the consumer transaction data set (16), the processing queue (22) including a plurality of prioritized target transactions (24); comparing at least one data field from the consumer transaction data set (16) directed to the consumer engaged in the prioritized target transaction (24) with at least one data field in at least one of the central credit issuer database (14) and a third party database (26); and determining a consumer/transaction identifier (36) based upon the comparison. A system (10) and apparatus (50) for the verification of a consumer/transaction is also disclosed.