Micropayment Transaction Processing With Preselected Payment Sources
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Solution Overview
Problem
Conventional consumer payment systems incur high transaction costs and processing times, particularly for micropayments, which can limit their adoption and efficiency in real-time transactions such as in-game purchases during interactive services.
Innovation Solution
A payment system that utilizes a transaction processor to review and approve micropayment requests using a financial database of past transactions and balances, allowing quick approval through multiple payment sources, including cash and credit accounts, and minimizing financial risk by prioritizing cash accounts and batch processing transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional transaction systems are used for micropayments, then transaction security and reliability are maintained, but transaction costs become prohibitively high relative to the payment amount
Solution Approach 1:
The system segments transactions into conventional payments (>$10) and micropayments (≤$10), applying different processing paths. For micropayments, it uses a simplified approval process that segments the traditional multi-bank verification into a single-processor approval, reducing costs while maintaining security for low-value transactions.
Solution Approach 2:
The system changes the approval parameter threshold based on transaction amount. For transactions ≤$10, it uses a simplified approval parameter set that requires only transaction processor verification rather than full bank-level verification, thereby reducing transaction costs while maintaining adequate security.
2Measurement precision
If conventional transaction systems are used for real-time purchases, then transaction accuracy is ensured, but processing time becomes too slow for interactive services
Solution Approach 1:
The system performs preliminary actions by pre-authorizing payment methods and pre-validating user accounts before the actual purchase. When a user initiates a micropayment, the verification work has already been done in advance, allowing near-instantaneous approval while maintaining accuracy through pre-established validation rules.
Solution Approach 2:
The system dynamically adjusts the verification process based on the interaction context. For interactive services like gaming, it implements a dynamic approval workflow that skips redundant verification steps when the transaction amount is small and the user context is already verified, thereby reducing processing time while maintaining necessary accuracy controls.
3Reliability
If multiple verification steps are performed for each transaction, then financial risk is minimized, but transaction throughput decreases
Solution Approach 1:
The system merges multiple verification steps into a single consolidated approval process for micropayments. Instead of sequentially executing separate validations for amount, account balance, and authorization, it combines these checks into one integrated verification routine that achieves the same financial risk control with fewer discrete steps, thereby increasing throughput.
Solution Approach 2:
The system uses copied validation rules and pre-computed verification data that can be rapidly replicated for each transaction. Rather than performing original complex calculations for every micropayment, it copies and applies pre-established validation templates, maintaining financial risk control through consistent rule application while significantly speeding up processing.
Data Source
AI summary
An improved payment system is provided for approving micropayments during interactive services engaged by consumers. The payment system provides a stored list of multiple sources of payment entered by the consumer. A transaction processor receives micropayment transaction payment requests and uses a financial database to approve or deny the request before submitting the payment request to the corresponding cash account or credit account issuer. The improved payment system may be useful in reducing latency due to waiting for payment approvals and may be useful in reducing transaction costs.