POS Advice Messaging for Found Transaction Card Reporting
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Solution Overview
Problem
There is no efficient mechanism for a finder of a lost transaction card to easily report its finding to the cardholder or the issuing bank, leading to potential financial and security risks due to delayed detection and exploitation by fraudsters.
Innovation Solution
A found card notification system that utilizes the payment rails of an interchange network to receive an interchange electronic advice message from a POS terminal, extract the primary account number, identify the issuer, and transmit a notification to the issuer about the found transaction card.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of time
If the cardholder manually reports the loss by contacting the issuing bank, then the cardholder can report the loss, but the process is time-consuming and delays fraud detection
Solution Approach 1:
The system performs preliminary action by automatically generating and sending a found card notification to the issuing bank as soon as the card is found and presented at a POS terminal, eliminating the need for manual reporting by the cardholder or finder. This automated preliminary notification ensures the issuing bank is immediately alerted before fraud can occur.
Solution Approach 2:
The system implements self-service by enabling the POS terminal to automatically detect the found card status and initiate the notification process to the issuing bank without requiring human intervention. The interchange network automatically routes the message, and the system can even automatically notify the cardholder, making the entire process self-operating.
2Ease of operation
If the finder manually contacts the issuing bank to report the found card, then the card can be reported as found, but the process requires effort and time from the finder
Solution Approach 1:
The system enables self-service by allowing the POS terminal to automatically detect when a found card is presented and initiate the notification process to the issuing bank without requiring the finder to take any action. The interchange network automatically routes the message, making the process effortless for the finder.
Solution Approach 2:
The interchange network acts as an intermediary that automatically receives the found card indication from the POS terminal and forwards it to the appropriate issuing bank. This intermediary mechanism eliminates the need for the finder to directly contact the bank, reducing effort and time requirements.
3Loss of information
If the cardholder retraces steps to find the lost card, then the cardholder can determine the last known location, but this does not guarantee finding the card and delays fraud detection
Solution Approach 1:
The system implements feedback by automatically notifying both the issuing bank and the cardholder when the found card is detected at a POS terminal. The cardholder receives immediate notification with location information, eliminating the need for the cardholder to manually search or retrace steps, while the bank receives real-time feedback to prevent fraud.
Data Source
AI summary
A found card notification system receives an interchange electronic advice message from a point-of-sale (POS) terminal associated with a merchant. The interchange electronic advice message includes an indicator of a misplaced transaction card, a primary account number (PAN) of the misplaced transaction card, and a merchant identifier that identifies the merchant. The system extracts the PAN from the interchange electronic advice message and identifies an issuer of the misplaced transaction card from the extracted PAN. The found card notification system transmits the interchange electronic advice message to the issuer of the misplaced transaction card in response to identifying the issuer of the misplaced transaction card.