Loyalty Card Payment Integration via Generated PAN
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Solution Overview
Problem
Consumers face the burden of carrying multiple cards and remembering numerous personal identification numbers (PINs) for various accounts, making it cumbersome to manage and track these items effectively.
Innovation Solution
A method and system that allows a customer identification device, such as a merchant loyalty or membership card, to be used as a payment device by generating a personal account number (PAN) by appending a proprietary routing code to the customer registration account number, which is then formatted for transmission over an electronic funds transfer network, enabling payment from a designated financial account.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If consumers use separate cards for identification and payment, then account security and functionality are maintained, but the number of items to carry and manage increases
Solution Approach 1:
The patent combines the customer identification function and payment function into a single card by integrating the customer identification number with a generated payment account number. The system merges two separate functions (identification and payment) that previously required separate cards, allowing consumers to use one card for both purposes while maintaining account security through the generated payment account number format.
Solution Approach 2:
The single card is designed to perform multiple functions: it serves as both a customer identification device and a payment device. The card contains the customer identification number that can be used to access the customer account, and the system generates a payment account number from this identifier, enabling the same card to be used for both identification and payment transactions.
2Adaptability or versatility
If consumers use multiple cards for different accounts, then account-specific functionality is preserved, but the complexity of managing multiple PINs increases
Solution Approach 1:
The system merges multiple account access functions into a single authentication mechanism. By generating a payment account number from the customer identification number and using this unified identifier for both identification and payment, the system eliminates the need for separate PINs for different cards while preserving account-specific functionality through the linked customer account.
Solution Approach 2:
The generated payment account number acts as an intermediary that bridges the customer identification system and the payment processing system. This intermediary identifier allows the system to maintain account-specific functionality while providing a unified access point that reduces the need for consumers to manage multiple separate authentication credentials.
3Ease of operation
If a single card is used for both identification and payment, then the number of items to carry is reduced, but the system complexity for processing transactions increases
Solution Approach 1:
The system performs preliminary action by pre-generating the payment account number format using the customer identification number before the actual transaction occurs. This pre-processing step, which includes appending the routing code to create the generated payment account number, simplifies the transaction processing by having the payment identifier ready in advance, reducing the complexity during the actual transaction.
Solution Approach 2:
The system enables self-service by automatically generating the payment account number from the customer identification number without requiring manual intervention. The point-of-sale system automatically formats the payment account number and processes the transaction, reducing the operational complexity for both the system and the consumer while maintaining ease of use.
4Productivity
If customer identification number is used directly as payment account number, then processing is simplified, but the account number does not conform to standard payment network formats
Solution Approach 1:
The system applies parameter changes by transforming the customer identification number into a generated payment account number that conforms to standard payment network formats. This transformation involves appending a routing code to the customer identification number, changing the format and parameters of the identifier to ensure compatibility with payment networks while maintaining the link to the original customer account for processing efficiency.
Solution Approach 2:
The generated payment account number serves as an intermediary that reconciles the need for standard payment network format compatibility with the desire for efficient processing. This intermediary identifier maintains the connection to the customer account for quick lookup and processing while conforming to the required format standards, enabling both compatibility and productivity.
Data Source
AI summary
Methods and systems are described for processing transactions. The methods and systems enable a consumer to present a customer identifier, such as a merchant loyalty or membership card or other identifier as a payment device at a point of sale. In one implementation, a personal account number is generated by appending a proprietary routing code to a customer registration account number so that the personal account number is formatted for transmission as a payment device number over an electronic funds transfer network. In another implementation, the customer registration account number comprises the proprietary routing code. A preferred payment account identifier is accessed, based on the personal account number, from a database, and a transaction approval message is constructed comprising the preferred payment account identifier. The account from which payment is made may be a credit account, a demand deposit account, a stored value account, or another kind of account.