Dynamic Currency Conversion System for Payment Terminals
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Solution Overview
Problem
Existing payment systems for credit card transactions in foreign currencies are prone to errors and are cumbersome, as they often prompt cardholders for foreign currency processing even for local currency transactions, and incorrect foreign currency codes can lead to rejected transactions.
Innovation Solution
A system and method for dynamic currency conversion that determines whether a card-issuing bank participates in a direct currency conversion program and if a valid exchange rate is available before presenting the option to the cardholder, using a bank identifier system and exchange rate system to ensure accurate currency and rate determination at the point of sale terminal.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If a query method is used to prompt cardholders for foreign currency processing, then the capability for processing credit card transactions in foreign currency is provided, but every transaction receives the prompt even if local currency processing is intended, leading to errors and cumbersome operations
Solution Approach 1:
The system performs preliminary determination of currency conversion availability and validity of exchange rates before presenting the option to the cardholder. The bank identifier system checks if the card-issuing bank participates in a direct currency conversion program, and the exchange rate system verifies valid exchange rates exist, so the prompt is only shown when foreign currency processing is actually available and appropriate.
2Adaptability or versatility
If the cardholder is prompted to enter foreign currency code, then the cardholder can select foreign currency processing, but incorrect foreign currency codes lead to transaction rejection after submission
Solution Approach 1:
The system performs preliminary validation by determining currency conversion availability through the bank identifier system and verifying valid exchange rates through the exchange rate system before the cardholder submits the transaction. This prevents submission of transactions with incorrect currency codes that would otherwise be rejected by the issuing bank.
Solution Approach 2:
The system provides feedback to the cardholder about currency conversion availability and valid exchange rates before the transaction is submitted. This feedback mechanism allows the cardholder to make an informed decision and avoid entering incorrect currency codes that would lead to rejection.
3Adaptability or versatility
If foreign currency processing is always offered, then maximum flexibility is provided, but unnecessary processing attempts increase error rates and frustration
Solution Approach 1:
The system performs preliminary checks to determine if currency conversion is available for the card-issuing bank and if valid exchange rates exist before offering foreign currency processing to the cardholder. This preliminary action filters out transactions that would not benefit from foreign currency processing, reducing unnecessary processing attempts and improving overall transaction efficiency.
Data Source
AI summary
A system for dynamic currency conversion is provided. The system includes a bank identifier system determining whether currency conversion is available for a card-issuing bank of a presented card, such as by comparing a bank identifier from the card with a list or table of participating banks. An exchange rate system determines whether an exchange rate has expired, such as an exchange rate associated with the foreign currency of the card-issuing bank. The card holder is presented with an option for selecting a foreign currency transaction after it is determined that currency conversion is available for the card-issuing bank and that the exchange rate has not expired, such that the card holder does not need to see such information unless foreign currency processing is available.