Dynamic Discount Card System for Real-Time Rate Adjustment
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Solution Overview
Problem
Conventional card-based discount systems lack real-time control over discount rates, making it difficult for service providers to dynamically adjust discounts based on various factors, particularly in industries like healthcare where insurance plans complicate billing and payment processes, leading to delayed revenue streams and increased administrative costs.
Innovation Solution
An automated dynamic discount card payment program that calculates and applies real-time discount rates to service provider bills using a computer system with a database storing provider data, consumer usage data, and insurance information, allowing providers to update discount criteria and apply varying discount rates during payment processing.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If conventional fixed discount rate cards are used, then consumers receive simple discount benefits, but service providers cannot dynamically adjust discount rates based on real-time business conditions
Solution Approach 1:
The patent implements dynamic discount rates by allowing service providers to set multiple discount rate variables (e.g., different rates for different times of day, days of week, or business conditions) that are automatically applied based on real-time conditions. The system transitions from static fixed rates to dynamic adjustable rates, enabling providers to adapt discount strategies to changing business needs while consumers simply present their cards for automatic application of the appropriate rate.
Solution Approach 2:
The system enables parameter changes by allowing service providers to modify discount rate parameters (such as discount percentage, time periods, applicable services) through a computer system. These parameter changes are stored and automatically retrieved during transaction processing, enabling flexible adjustment of discount terms without physical card changes or complex consumer actions.
2Adaptability or versatility
If multiple discount cards are issued for different products/services, then varying discount rates can be applied, but consumer convenience deteriorates due to carrying and managing multiple cards
Solution Approach 1:
The patent implements a universal discount card system where a single consumer card can be used across multiple service categories and providers. The card contains or is associated with a consumer identifier that enables the system to retrieve and apply appropriate discount rates based on the specific transaction context (service category, provider, time). This eliminates the need for consumers to carry multiple category-specific cards while maintaining the ability to provide differentiated discounts.
Solution Approach 2:
The system introduces a computer-based intermediary that mediates between the consumer's single discount card and the various service providers. This intermediary (the discount management system) stores consumer discount profiles, identifies the appropriate discount rate based on transaction details, and automatically applies the correct discount during processing, enabling category-specific discounts without requiring multiple physical cards.
3Productivity
If real-time discount rate updates are implemented, then providers can respond to business conditions, but system complexity and update infrastructure requirements increase
Solution Approach 1:
The patent replaces manual or mechanical discount rate update processes with an automated computer-based system. Service providers can update discount rates through electronic interfaces, and these updates are automatically propagated to the discount management system and applied in real-time during transactions. This substitution of mechanical update processes with electronic automation enables rapid response to business conditions while reducing the operational complexity of manual rate changes.
Solution Approach 2:
The system implements feedback mechanisms where transaction data and business condition information are continuously monitored and fed back to the discount rate management system. This feedback enables automatic adjustment of discount rates based on real-time conditions such as demand levels, time of day, or inventory status, allowing the system to respond dynamically to business conditions without complex manual intervention.
4Adaptability or versatility
If discount rates are manually adjusted, then providers maintain control over pricing, but administrative time and costs increase
Solution Approach 1:
The patent implements self-service functionality where the system automatically manages discount rate application based on pre-configured parameters set by service providers. Once providers establish their discount rate variables and criteria in the system, the automated system handles the retrieval, selection, and application of appropriate discount rates for each transaction without requiring manual intervention. This enables providers to maintain control over their discount strategies while eliminating the time-consuming manual calculation and application processes.
Data Source
AI summary
An automated method of employing a dynamic discount card payment program to enable a discount card-carrying consumer to pay a discount card-accepting service provider bill amount, such that a dynamic discount payment card computer system monitors modifications made, by a service provider, to a discount rate methodology and automatically calculates and applies the service provider-modified discount rate methodology to the service provider bill amount during processing of a corresponding consumer discount card-based payment of the provider bill amount.