Intelligent Clearing Network for Coupon Validation
Find Innovative SolutionsGenerate Solutions
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 leads 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 transmit coupon data to an ICN server for validation and settlement, eliminating the need for manual counting and providing an auditable financial process.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If manual counting and validation of paper coupons is used, then labor intensity is high and processing time is long, but the system is simple and does not require complex infrastructure
Solution Approach 1:
The patent replaces the manual mechanical counting and validation process with an automated electronic system. POS terminals capture coupon data electronically, transmit it through a clearing network, and automatically validate against a centralized database, eliminating the need for manual handling and counting of physical coupons.
Solution Approach 2:
The patent introduces a clearing network as an intermediary between retailers and manufacturers. This network includes clearing houses that facilitate automated data transmission, validation, and financial settlement, serving as a mediator that streamlines the entire coupon redemption process without requiring direct manual intervention between parties.
2Reliability
If manual clearing process is used, then fraud detection capability is limited, but the process is easier to implement
Solution Approach 1:
The patent implements a feedback mechanism where coupon data captured at POS terminals is automatically transmitted to a centralized database through the clearing network. The system validates each coupon in real-time by comparing against the database, providing immediate feedback on validity and preventing fraudulent redemptions of expired or duplicate coupons.
Solution Approach 2:
The patent performs preliminary validation by maintaining a centralized database of all valid coupons with their expiration dates and redemption status. Before a coupon can be redeemed, the system proactively checks the database to verify authenticity and validity, preventing fraud before it occurs rather than detecting it afterward.
3Loss of time
If paper coupons are processed manually, then reimbursement time for retailers is delayed, but the process requires less technological infrastructure
Solution Approach 1:
The patent enables continuous automated processing of coupon data from capture to validation to financial settlement. The clearing network operates continuously, transmitting data in real-time and processing settlements without the discontinuities inherent in manual processes, dramatically reducing reimbursement time for retailers.
Solution Approach 2:
The patent merges multiple separate processes (coupon capture, data transmission, validation, counting, and financial settlement) into a single integrated automated system. By combining these functions into one cohesive clearing network, the system eliminates the sequential delays of manual processing and achieves rapid end-to-end reimbursement.
Data Source
AI summary
In an embodiment, a system for validating, redeeming, and financially settling paper coupons coded with a GS1 barcode and 8110 Application Identifier comprises a real time network through which a Point-of-Sale (POS) terminal communicates directly to, or through a POS controller, with an Intelligent Clearing Network (ICN) server. One or both of the POS terminal and POS controller are installed with a ICN POS data bridge which stores computer code. The ICN server is configured to run a real time application while in communication with the POS terminal, wherein the POS terminal transmits paper coupon data elements read from the GS1 barcode and other consumer transaction information including universal product codes purchased, and transaction details to the ICN server via the network.