Intelligent Clearing Network for Real-Time Coupon Validation
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Solution Overview
Problem
The existing process of validating and settling paper coupons is slow, labor-intensive, and prone to fraud, requiring manual counting and validation, which can lead to disputes and delayed reimbursement for retailers.
Innovation Solution
A real-time network-based system, the Intelligent Clearing Network (ICN), which uses POS terminals to read GS1 barcode data, transmit coupon information over a network for validation and redemption, and facilitates financial settlement through an ICN server and database, eliminating the need for manual counting and reducing fraud.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If manual counting and validation of paper coupons is used, then labor intensity and processing time are high, but the system is simple and does not require complex infrastructure
Solution Approach 1:
The patent replaces manual mechanical counting and validation processes with an automated electronic system. POS terminals equipped with barcode scanners automatically read coupon data, and the ICN server electronically validates and processes coupon redemptions in real-time, eliminating the need for manual handling and counting of physical coupons.
Solution Approach 2:
The system creates electronic copies of coupon data by scanning barcodes on physical coupons. The scanned data is transmitted to the ICN server where it is validated against the master coupon table, allowing the physical coupon to be replaced by its digital representation for validation and settlement purposes.
2Reliability
If manual clearing and settlement process is used, then fraud and misuse are more likely to occur, but the process is easier to implement
Solution Approach 1:
The ICN server provides real-time feedback by validating each scanned coupon against the master coupon table and immediately determining validity. The system provides instant confirmation to the POS terminal whether a coupon is valid, expired, duplicated, or fraudulent, enabling immediate detection and prevention of invalid redemptions.
Solution Approach 2:
The system performs preliminary validation of coupons before redemption occurs. The ICN server checks the scanned coupon data against the master coupon table in advance, verifying authenticity, expiration status, and redemption history, thereby preventing fraudulent transactions before they can affect the retailer or manufacturer.
3Measurement precision
If real-time network-based validation system is implemented, then processing speed and accuracy are improved, but infrastructure requirements and system complexity increase
Solution Approach 1:
The ICN server performs multiple functions within a single system: it stores the master coupon table, validates scanned coupons in real-time, tracks redemption history, prevents fraud, and manages financial settlement. This multi-functional approach consolidates what could be separate complex systems into one integrated platform.
Solution Approach 2:
The ICN server acts as an intermediary between the POS terminal and the manufacturer's coupon database. It receives scanned coupon data from the POS, validates it against the master coupon table, and returns validation results, thereby mediating the interaction and simplifying the overall system architecture while maintaining high accuracy.
4Reliability
If manual counting of redeemed coupons is required, then reimbursement disputes can occur, but the process requires less technology infrastructure
Solution Approach 1:
The system continuously tracks and records each coupon redemption in real-time as it occurs. The ICN server maintains an ongoing record of validated and redeemed coupons, creating a continuous audit trail that eliminates the need for separate manual counting and reconciliation processes, thereby ensuring accurate settlement without disputes.
Data Source
AI summary
A system for validating, redeeming, and financially settling coupons is described. The system includes a real time network through which a Point-of-Sale (POS) device communicates with an Intelligent Clearing Network (ICN) server. The ICN server is configured to run a real time application while in communication with the POS device, wherein the POS device transmits coupon data elements read at the POS device and other consumer transaction information including universal product codes purchased, and transaction details to the ICN server via the network. The ICN server validates the coupon data elements and provides the POS device information in order to redeem coupons. Apparatus and computer readable media are also described.