Merchant Server Credential Authentication with Value-Added Offers
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Solution Overview
Problem
Online payment transactions are considered higher risk than traditional transactions, leading to abandonment due to inconvenient security verification processes, which require additional steps and time from customers.
Innovation Solution
A system that initiates a verification process on a merchant server, offering value-added incentives to customers by presenting personalized offers based on their account profiles, allowing for enhanced security while streamlining the payment process by modifying the authorization amount and crediting rewards, thus reducing the likelihood of transaction abandonment.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If additional security verification processes are implemented for online transactions, then security reliability is improved, but transaction completion time increases and customer convenience deteriorates
Solution Approach 1:
The system performs verification checks and prepares authorization requests in advance during the shopping process. The account holder is pre-identified and verification steps are initiated before the final purchase moment, reducing wait time at the critical decision point.
Solution Approach 2:
The account holder uses their existing payment account credentials (card number, expiration date, security code) that they already have memorized or stored, eliminating the need for separate verification devices or additional authentication steps. The system leverages information the customer already possesses.
2Reliability
If multiple verification steps are required for online payments, then security is improved, but ease of operation deteriorates leading to transaction abandonment
Solution Approach 1:
The verification process is merged with the existing payment information entry process. The same fields used for payment (account number, expiration date, security code) serve dual purposes for both transaction authorization and identity verification, eliminating redundant steps.
Solution Approach 2:
The payment account information serves multiple functions: it identifies the customer, verifies their identity, authorizes the transaction, and enables reward account identification. A single set of credentials performs all verification functions needed.
3Reliability
If complex verification processes are implemented, then security reliability is improved, but customer satisfaction deteriorates due to perceived inconvenience
Solution Approach 1:
The system converts the potentially harmful effect of additional verification steps into a benefit by identifying the account holder during verification and presenting personalized value-added offers. The verification process itself becomes the trigger for rewarding the customer.
Solution Approach 2:
The system provides immediate feedback to the account holder during verification by presenting relevant offers and rewards based on their profile. This positive feedback loop maintains customer engagement and transforms a security hurdle into an opportunity for value addition.
Data Source
AI summary
The disclosed merchant server initiates a verification process in response to receiving an account identifier for an account in response to a payment selection by an account holder. In response to confirming enrollment of the account in a verification service, the merchant server receives an access point (e.g., a uniform resource locator (URL), API, etc.) and presents an offer interface corresponding to the access point. The offer interface includes a value added offer based on a profile of the account. The merchant server receives a credential and an acceptance indicator in response to the account holder accepting the value added offer. The merchant server may send an authorization request to a transaction authorization system.