Merchant Transaction Authorization Service
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Solution Overview
Problem
Current mobile payment systems rely on issuer banks for transaction authorization, limiting speed and flexibility, and restricting merchants' ability to offer personalized financial products due to the need for multiple interactions and adherence to bank rules.
Innovation Solution
A service that provisions payment methods to electronic wallets on the user end and authorizes transactions on the merchant end, allowing for greater control and integration, enabling the service provider to offer personalized financial products and services by accessing detailed transaction data.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If issuer banks are used for transaction authorization, then security and reliability are improved, but transaction speed and system flexibility deteriorate
Solution Approach 1:
The patent segments the authorization function from the issuer bank by introducing a separate authorization service that operates independently. The issuer bank retains its core function of issuing payment methods, while the authorization service handles transaction approvals. This segmentation allows the authorization process to be optimized for speed without compromising the security functions of the issuer bank.
Solution Approach 2:
The patent introduces an intermediary authorization service that sits between the merchant and the issuer bank. This intermediary receives authorization requests, makes approval decisions based on predefined criteria, and only contacts the issuer bank when necessary. This mediator role accelerates transactions by eliminating unnecessary bank interactions while maintaining security through selective verification.
2Reliability
If multiple interactions with issuer banks are required, then transaction reliability is improved, but system complexity and processing time increase
Solution Approach 1:
The patent implements preliminary action by pre-provisioning payment methods with authorization parameters and limits before transactions occur. The authorization service is pre-configured with business rules, credit limits, and approval criteria. This preliminary setup eliminates the need for complex real-time interactions with the issuer bank during transactions, simplifying the system while maintaining reliability through pre-validated parameters.
3Reliability
If issuer bank rules are followed, then transaction security is improved, but merchant flexibility and ability to offer personalized products deteriorate
Solution Approach 1:
The patent applies dynamics by making the authorization system adaptable and configurable. The authorization service can dynamically adjust approval criteria, credit limits, and transaction parameters based on merchant-specific configurations and user profiles. This dynamic approach allows merchants to offer personalized financial products while maintaining security through configurable risk parameters that can be adjusted without changing the core security architecture.
Data Source
AI summary
The subject system may be implemented by a processor circuit configured to receive a payment credential request, wherein the payment credential request comprises a requested amount, provision, in response to the payment credential request, a payment credential and a payment account corresponding to the payment credential, wherein the payment account is associated with a balance corresponding to the requested amount, receive, from a merchant system, an authorization request of a transaction for an authorization amount, wherein the authorization request comprises the payment credential and a merchant identifier of the merchant system, authorize the authorization amount when the authorization amount is less than or equal to the requested amount, and when the authorization amount exceeds the requested amount by a threshold amount, authorize the authorization amount based at least in part on the merchant identifier.