Merchant Geolocation Inference via Transaction Data

Resolve Bottlenecks,
Find Innovative SolutionsGenerate Solutions

Solution Overview

Problem

Current methods for determining merchant geolocations are often inaccurate, time-consuming, and resource-intensive, particularly when scaling, and do not effectively maintain consumer privacy when using mobile device geolocation data in combination with transaction data.

Innovation Solution

A system and method that stores transaction data and merchant profiles, identifies relevant data sets, transmits identification values to a probe operator to receive geolocation data, and processes this data to update merchant geolocations while maintaining consumer privacy by obscuring transaction details.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Measurement precision

If employee physical visits are used to identify merchant geolocations, then accuracy can be improved through multiple measurements, but resource consumption and time requirements increase significantly

Engineering Contradiction:

Improvemerchant geolocation accuracyVSAvoidresource consumption and time

Core Design Contradiction:

Measurement precisionVSProductivity

Solution Approach 1:

The patent replaces the mechanical manual measurement process with an automated electronic system that uses mobile device geolocation data, transaction records, and processing algorithms to automatically determine merchant geolocations, eliminating the need for physical field visits while maintaining accuracy

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The system enables merchants to self-report geolocation information through their existing mobile devices and transaction systems, allowing the data to be collected and processed automatically without requiring employee intervention or manual measurement at each location

Inventive Principle:

Principle #25Self-service

2Productivity

If merchants self-report their geolocation, then time consumption is reduced, but accuracy deteriorates due to reliance on merchant-provided data quality

Engineering Contradiction:

Improvetime consumptionVSAvoidgeolocation accuracy

Core Design Contradiction:

ProductivityVSMeasurement precision

Solution Approach 1:

The system uses feedback loops where merchants initially provide geolocation data, the system processes and validates this data against transaction records and mobile device locations, and then refines or corrects the geolocation information based on verified patterns from multiple data sources

Inventive Principle:

Principle #23Feedback

Solution Approach 2:

The system changes the parameter of data collection from relying solely on merchant-provided values to using objective data from mobile devices and transaction records, transforming the accuracy assessment from subjective merchant reporting to objective verification through multiple data cross-referencing

Inventive Principle:

Principle #35Parameter changes

3Productivity

If mobile device geolocation data is used to infer merchant geolocations, then efficiency and accuracy improve, but consumer privacy is compromised through exposure of transaction details

Engineering Contradiction:

Improvegeolocation inference efficiencyVSAvoidconsumer privacy risk

Core Design Contradiction:

ProductivityVSObject-affected harmful factors

Solution Approach 1:

The patent extracts only the necessary geolocation information from mobile device data and transaction records, separating the useful geolocation inference function from the potentially privacy-sensitive transaction details, and using only minimal identifying information needed for the analysis

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The system introduces an intermediary processing layer that aggregates and anonymizes data before analysis, using aggregated statistical patterns rather than individual transaction records, and implementing data minimization principles to reduce privacy exposure while maintaining inference accuracy

Inventive Principle:

Principle #24Intermediary (Mediator)

Data Source

PatentUS10169753B2Method and system for maintaining privacy in the inference of merchant geolocations

Publication Date: 2019.01.01 MASTERCARD INT INC

AI summary

A method for inferring a merchant geolocation includes: storing a plurality of transaction data entries, each including an account identifier, merchant identifier, and transaction time; storing a plurality of merchant profiles, each including a merchant identifier and geolocation; identifying a first set of transaction data entries, each entry including a common merchant identifier; identifying a second set of transaction data entries, each entry including a different merchant identifier corresponding to a merchant within a predetermined distance of a merchant corresponding to the common merchant identifier; transmitting an identification value associated with each transaction data entry in the first and second sets; receiving geolocation data entries for each identification value, each entry including a location time and geolocation; and identifying an updated merchant geolocation for the merchant corresponding to the common merchant identifier based on the geolocation included in geolocation entries that match transaction data entries in the first set.