Merchant Payment Vehicle Linking for NSF Checks and Loyalty Integration

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Solution Overview

Problem

Existing merchant-issued payment vehicles are typically linked to dedicated financial accounts or ACH-decoupled debit cards, which lack real-time NSF checks and incur processing fees, and do not efficiently integrate with customer loyalty programs.

Innovation Solution

A system and method for linking a merchant-issued payment vehicle to a customer's preexisting financial account, enabling real-time NSF checks and integrating with customer loyalty programs, using a unique identification number and a payment processor to manage transactions and loyalty rewards.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If merchant-issued payment vehicles are linked to dedicated financial accounts or ACH-decoupled debit cards, then payment processing can be established, but real-time NSF checks cannot be performed and processing fees are incurred

Engineering Contradiction:

ImproveNSF check capabilityVSAvoidprocessing fees

Core Design Contradiction:

ReliabilityVSLoss of energy

Solution Approach 1:

The patent introduces a payment account as an intermediary layer between the merchant-issued payment vehicle and the customer's preexisting financial account. This payment account receives funds from the financial account and enables real-time NSF checks before transactions are processed, eliminating the need for ACH network settlements and associated fees while preventing nonsufficient funds situations.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Adaptability or versatility

If merchant-issued payment vehicles are linked to dedicated financial accounts, then payment functionality is established, but integration with customer loyalty programs is not achieved

Engineering Contradiction:

Improveloyalty program integrationVSAvoidaccount linking structure

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The payment account serves multiple functions: it acts as a financial buffer for transactions, enables real-time NSF checks, and simultaneously integrates with customer loyalty programs. This multi-functionality allows the system to handle both payment processing and loyalty program operations through a single account structure, eliminating the need for separate integration mechanisms.

Inventive Principle:

Principle #6Universality (Multi-functionality)

3Reliability

If payment vehicle account numbers are updated, then account security is maintained, but account holder input is required which reduces convenience

Engineering Contradiction:

Improveaccount securityVSAvoidupdate process convenience

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The system automatically detects and processes updates to payment vehicle account numbers without requiring customer intervention. When a payment vehicle is replaced or updated, the system autonomously retrieves the new account number and links it to the payment account, maintaining security while eliminating the need for customers to manually update their information.

Inventive Principle:

Principle #25Self-service

Data Source

PatentUS12387259B2Merchant issued payment vehicles linked to preexisting financial accounts

Publication Date: 2025.08.12 WORLDPAY LLC

AI summary

Systems and methods are provided for linking a customer's preexisting financial account to a merchant issued payment vehicle. If an account number associated with the preexisting financial account changes, the linking of the merchant issued payment vehicle is updated with an updated account number.