Intercept Node Real-Time Discount Processing
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Solution Overview
Problem
Existing payment processing systems do not efficiently apply discounts to purchase prices in real-time during financial transactions, requiring separate processing for original and adjustment transactions, and burden cardholders with managing coupons or discounts.
Innovation Solution
A system where an intercept node computing device transmits SKU data and non-adjusted authorization amounts to a discount module, which determines and transmits an adjusted authorization amount, allowing the payment processor to replace the non-adjusted amount in authorization requests, enabling real-time discount application and split settlement amounts.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If discounts are applied separately after transaction processing, then the payment system maintains simplicity, but the processing time increases and efficiency decreases
Solution Approach 1:
The system performs preliminary actions by determining discounts and adjusting authorization amounts before the final transaction processing. The intercept node captures the transaction, determines applicable discounts, and calculates adjusted authorization amounts in advance, so that when the payment processor receives the authorization request, the discounted amount is already prepared and can be applied immediately, eliminating the need for separate post-processing steps.
Solution Approach 2:
The patent introduces an intercept node as an intermediary component between the merchant and the payment processor. This intercept node serves as a mediator that handles discount determination and authorization amount adjustment, allowing the payment processor to focus solely on transaction processing while the intermediary manages the complex discount logic, thereby improving overall system efficiency without increasing processing time.
2Ease of operation
If cardholders manage their own discounts and coupons, then the system remains simple, but the ease of operation decreases and cardholders bear the burden
Solution Approach 1:
The system implements self-service by having the intercept node automatically determine applicable discounts and calculate adjusted authorization amounts without requiring cardholder intervention. The intercept node autonomously queries the discount module, receives discount information, and computes the adjusted amount, completely eliminating the need for cardholders to manually manage or input discount information, thereby greatly improving ease of operation while keeping system complexity manageable through automation.
Solution Approach 2:
The intercept node acts as an intermediary that handles all discount management operations between the cardholder and the payment system. It automatically determines which discounts apply, calculates the adjusted authorization amounts, and communicates these adjustments to the payment processor, thereby shielding the cardholder from any complexity while maintaining system functionality.
3Productivity
If separate transactions are processed for original amount and discount adjustment, then the payment network remains simple, but the quantity of transactions increases and processing load grows
Solution Approach 1:
The patent merges the discount adjustment transaction with the original payment transaction into a single integrated processing flow. The intercept node determines discounts and calculates adjusted authorization amounts as part of the initial transaction capture, so that only one transaction is sent to the payment processor instead of requiring a separate adjustment transaction, thereby reducing the total quantity of transactions while maintaining processing throughput.
Solution Approach 2:
By performing discount determination and authorization amount adjustment as preliminary actions during the initial transaction capture at the intercept node, the system eliminates the need for subsequent separate adjustment transactions. The adjusted authorization amount is prepared in advance and included in the single transaction sent to the payment processor, reducing overall transaction volume while maintaining processing efficiency.
Data Source
AI summary
A computer-implemented method for processing a discount is described. The method is implemented using a payment processor computing device associated with a payment network. The method includes receiving, at the payment processor computing device, from a discount module computing device, a notification of an adjusted authorization amount for a transaction, wherein the notification is received by the discount module computing device from an intercept node computing device at the time a cardholder makes a purchase. The method also includes receiving, at the payment processor computing device, an authorization request message including a non-adjusted authorization amount for the transaction, replacing the non-adjusted authorization amount with the adjusted authorization amount in the authorization request message, and transmitting the authorization request message to an issuer computing device.