Loyalty Program Parameter Collaboration via Transaction Handler Mediation
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Solution Overview
Problem
Loyalty programs face challenges in effectively targeting consumers due to limited interaction and access to detailed transaction data among participants, leading to confined parameter settings and inaccurate communication, which hampers the creation of tailored and effective promotions.
Innovation Solution
A collaborative platform allows multiple stakeholders, including consumers, issuers, acquirers, and merchants, to collaborate on developing, implementing, and refining loyalty program parameters, ensuring compliance with predetermined rules and facilitating uniform data exchange through a transaction processing system.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If loyalty program parameters are set by a single participant (e.g., issuing bank), then the program construction is simple and quick, but the program cannot be finely targeted to meet specific merchant or consumer needs
Solution Approach 1:
The patent segments the loyalty program parameter setting into multiple independent components that can be configured by different participants. Each participant (merchant, issuer, transaction handler) can set specific parameters within their domain, such as merchant setting promotional parameters and issuers setting account parameters, rather than requiring centralized control of all parameters by a single entity.
Solution Approach 2:
The patent introduces a new dimension of collaboration by adding transaction handlers as intermediary participants between merchants and issuers. This creates a multi-dimensional parameter setting framework where parameters flow through multiple channels and are integrated at the transaction handler level, enabling fine-grained targeting while distributing system complexity across multiple specialized components.
2Loss of information
If transaction data is collected and maintained by individual participants in different formats, then each participant can process data according to their own requirements, but accurate communication and data sharing between participants is hampered
Solution Approach 1:
The patent introduces transaction handlers as intermediary entities that mediate between merchants and issuers. These handlers collect transaction data from merchants in various formats, standardize and validate the data according to predetermined rules, and then forward it to issuers. This intermediary layer ensures accurate communication while allowing each participant to maintain their own data processing preferences.
Solution Approach 2:
The patent implements parameter transformation at the transaction handler level, where transaction data is converted between different formats and representations. The system applies predetermined rules to transform merchant data into issuer-compatible formats, changing parameters such as data structure, validation criteria, and processing requirements to ensure compatibility across different participants.
3Adaptability or versatility
If merchants have limited access to transaction data, then data security and privacy are maintained, but merchants cannot create effective and targeted loyalty programs
Solution Approach 1:
The patent uses transaction handlers as secure intermediaries that give merchants controlled access to transaction data without compromising security. The handlers provide merchants with access to specific data elements needed for program creation (such as aggregated transaction patterns and consumer behavior metrics) while filtering out sensitive information and maintaining encryption and access controls for the full data set.
Solution Approach 2:
The patent implements differentiated data access where different participants receive different levels and types of data access based on their specific needs. Merchants receive data appropriate for marketing and program creation, issuers receive data for account management, and transaction handlers retain full access for processing and validation, with each participant's data access optimized for their local requirements while maintaining overall security.
Data Source
AI summary
Collaborative constituents collaborate to develop a loyalty program within a transaction processing system. Transmissions addressed to the collaborative constituents are formed and received from the collaborative constituents containing suggested parameters for the loyalty program. At least one remaining parameter for the loyalty program that a set of remaining collaborative constituents have agreed upon is determined. Another transmission addressed to each of the collaborative constituents in the set of remaining collaborative constituents is formed, the another transmission including the remaining parameters for the loyalty program.