Local Financial Transaction Processing via Network Threshold Caching
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Solution Overview
Problem
Existing merchant systems are not configured to independently process financial transactions, requiring data to be downloaded from the payment processing network prior to transaction processing, which can lead to delays and inefficiencies.
Innovation Solution
A merchant system that includes a network interface device and a control system capable of determining network communication status, obtaining an account threshold, generating transaction data, and storing it for later transmission to the payment processing network, allowing for local processing of financial transactions without immediate network communication.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If the merchant system waits for authorization response from the payment processing network before processing the transaction, then the transaction authorization is reliable, but the transaction processing time increases and the system becomes less efficient
Solution Approach 1:
The system performs preliminary actions by obtaining account thresholds and storing transaction data locally before network authorization is received. The merchant system can evaluate transactions against stored thresholds and prepare authorization decisions in advance, so when network response arrives, the actual processing is already complete or near-complete, resolving the contradiction between reliability and speed
2Reliability
If the merchant system requires continuous network connectivity to process transactions, then the authorization accuracy is maintained, but the system becomes vulnerable to network failures and delays
Solution Approach 1:
The system obtains and stores account thresholds, customer data, and transaction rules in advance before network connectivity is needed for final authorization. This preliminary caching of essential data enables the system to continue processing transactions locally even when network connectivity is interrupted, maintaining both accuracy and resilience
Solution Approach 2:
The system introduces local storage and processing capabilities as an intermediary between the payment processing network and the transaction completion. This intermediary layer allows the system to buffer transactions, store necessary data locally, and complete processing without continuous network dependency, bridging the gap between centralized authorization and local operational independence
3Productivity
If the merchant system processes transactions locally without real-time network communication, then the transaction speed improves, but the system complexity increases due to local data storage and processing requirements
Solution Approach 1:
The system extracts only the essential data elements needed for transaction processing (account thresholds, customer data, transaction rules) and stores them locally, rather than implementing a complete standalone processing system. This extraction approach enables local processing speed while minimizing the complexity burden by keeping only the minimum necessary data and logic at the merchant system
Data Source
AI summary
Embodiments of the disclosure enable a merchant system to locally process one or more financial transactions at the merchant system. The merchant system receives a payment request associated with a financial transaction, determines a network communication status associated with a network interface device coupleable to a payment processing network, and, on condition that the network communication status does not satisfy a network communication threshold, obtains an account threshold associated with a cardholder account, generates transaction data associated with the financial transaction based on the account threshold, presents an indication associated with the financial transaction, and stores the transaction data for later transmission of the transaction data to the payment processing network. Aspects of the disclosure provide for processing one or more financial transactions at a merchant system independent of a payment processing network.