Margin Authentication Module for Payment Transaction Authorization
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Solution Overview
Problem
Existing authentication systems face challenges when the final authorized amount of an online transaction exceeds the initial amount, leading to unnecessary additional authentication processes that burden network bandwidth and may result in transaction declines due to lack of consumer participation.
Innovation Solution
A computer-implemented method and system that utilizes a margin authentication module to link initial authentication data with subsequent authorization requests, allowing authorization without additional consumer input if the increased amount does not exceed a predefined margin.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a second authentication request is submitted to the ACS system when the fulfillment amount exceeds the initial amount, then the authorization can be obtained, but the network bandwidth consumption increases and additional messaging burden is created
Solution Approach 1:
The system performs preliminary authentication at the time of order placement, storing the authentication result and amount. When fulfillment occurs with amount changes, the system checks whether the change falls within a predefined threshold. If within threshold, the preliminary authentication result is reused, avoiding additional authentication messaging and reducing network bandwidth consumption while maintaining authorization reliability.
2Reliability
If a second authentication request is submitted to the ACS system, then the authorization can be obtained, but the system complexity increases due to additional messaging protocols
Solution Approach 1:
The system performs preliminary authentication at the time of order placement, storing the authentication result and amount. When fulfillment occurs with amount changes, the system checks whether the change falls within a predefined threshold. If within threshold, the preliminary authentication result is reused, avoiding additional authentication messaging and reducing network bandwidth consumption while maintaining authorization reliability.
Solution Approach 2:
The patent extracts the authentication function from the authorization flow by implementing a separate authentication module that operates independently. The authentication result is stored and referenced during authorization, separating the authentication process from the authorization process. This reduces system complexity by eliminating the need for integrated real-time authentication messaging during authorization.
3Reliability
If pre-authorization with a predetermined marginal increase is performed, then the authorization issue is resolved, but the consumer's funds are blocked for an extended period
Solution Approach 1:
The system changes the parameter of authentication validity by introducing a threshold-based amount comparison mechanism. Instead of requiring exact amount matching or pre-authorization, the system allows authentication results to remain valid for fulfillment amounts within a predefined threshold of the initial amount. This enables dynamic parameter adjustment that resolves authorization issues without requiring fund pre-blocking.
4Object-affected harmful factors
If the authentication amount is strictly enforced during authorization, then fraud is reduced, but legitimate transactions with price increases are declined
Solution Approach 1:
The system changes the parameter of authentication validity by introducing a threshold-based amount comparison mechanism. Instead of requiring exact amount matching or pre-authorization, the system allows authentication results to remain valid for fulfillment amounts within a predefined threshold of the initial amount. This enables dynamic parameter adjustment that resolves authorization issues without requiring fund pre-blocking.
Solution Approach 2:
The patent implements a dynamic threshold mechanism that adapts to different transaction types and risk profiles. The system can adjust the threshold parameter based on transaction characteristics, merchant category, and consumer preferences. This dynamic approach maintains fraud protection while providing flexibility for legitimate price variations, making the system adaptable to diverse transaction scenarios.
Data Source
AI summary
A method for linking an initial authentication of an online transaction to a subsequent authorization of the online transaction is provided. The method includes: receiving an authentication request message including transaction data, storing in an authentication database authentication data including an initial transaction amount, causing margin data representative of an authentication margin to be associated with the authentication data in the authentication database, receiving a request to link an authorization request message for the online transaction to the authentication data wherein the authorization request message including a fulfillment transaction amount greater than the initial transaction amount, determining that the fulfillment transaction amount does not exceed the initial transaction amount by more than the authentication margin, and transmitting an indication that the authorization request message is successfully linked to the authentication data, thereby enabling authorization by the payment network of the online transaction including the fulfillment transaction amount.