Fuzzy Evaluation Index for Aggregate Merchant Set Accuracy
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Solution Overview
Problem
Existing systems for evaluating aggregate merchant sets lack accuracy in identifying the need for audits, as they rely on inconsistent transaction data and manual aggregation techniques, leading to potential inaccuracies and unnecessary resource allocation.
Innovation Solution
A system that employs fuzzification of parameters associated with aggregate merchant sets based on fuzzy rules to generate evaluation indexes, which are then compared to predefined thresholds to determine the necessity of audits, ensuring objective and dynamic assessment.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If manual aggregation techniques are used for merchant sets, then ease of operation is improved, but measurement precision deteriorates
Solution Approach 1:
The patent replaces manual aggregation techniques with automated computational systems that use data analysis algorithms to identify and aggregate merchants based on transaction patterns, geographic proximity, and business category similarities. This substitution of mechanical/manual processes with automated systems resolves the contradiction by achieving both operational efficiency and improved aggregation accuracy through objective computational criteria.
Solution Approach 2:
The patent introduces multiple parameters for evaluating merchant aggregation quality, including transaction volume thresholds, geographic distance metrics, and business category match scores. By changing from single-criterion manual aggregation to multi-parameter automated evaluation, the system simultaneously improves ease of operation and measurement precision through systematic parameter-based decision making.
2Adaptability or versatility
If inconsistent transaction data is used, then adaptability is improved, but reliability deteriorates
Solution Approach 1:
The patent implements feedback mechanisms where aggregation results are continuously evaluated against new transaction data, and aggregation criteria are dynamically adjusted based on performance metrics. This feedback loop allows the system to adapt to varying data quality while maintaining reliable aggregation outcomes through iterative optimization and validation.
Solution Approach 2:
The patent incorporates data validation and cleaning procedures that preprocess transaction data before aggregation, cushioning against the effects of inconsistent data. By preparing data in advance through standardization, outlier detection, and quality filtering, the system maintains reliability even when source data varies in quality and consistency.
3Productivity
If audits are conducted without accurate evaluation, then productivity is improved, but loss of time deteriorates
Solution Approach 1:
The patent implements risk-based auditing where only merchant sets with aggregation scores below predetermined thresholds undergo audit review. By applying partial action (auditing only necessary cases) rather than exhaustive auditing, the system improves productivity by focusing resources on high-risk cases while reducing time loss through selective evaluation based on objective criteria.
Data Source
AI summary
Systems and methods are provided for evaluating aggregate merchant sets, which are often generated by a payment network. One exemplary method includes accessing, by a computing device, a monitor score and a volatility score for an aggregate merchant set representative of multiple merchants having at least one disparate parameter in a transaction data structure, fuzzy sets for the monitor score and the volatility score comprising linguistic values, and inference rules that use the linguistic values in logical operations. The method also generally includes determining degrees of membership of the monitor score and volatility score to the associated fuzzy sets and generating an evaluation index based on the inference rules and the degrees of membership to the fuzzy sets, thereby providing an indication of a propriety of the aggregation of said multiple merchants.