Mobile Credit Pre-Authorization for Reliable Merchant Transactions

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Solution Overview

Problem

Credit transactions can be rejected unexpectedly due to various reasons, causing inconvenience and potential fraud, especially for high-risk users, and existing methods for pre-authorization are cumbersome and inefficient, particularly in foreign locations or when language barriers exist.

Innovation Solution

A system and method for pre-authorizing credit transactions using a user device and a pre-authorization server that allows users to request and receive confirmation for transactions, including options for pre-authorization amounts and vendors, with policies tailored to user risk profiles, and automatic revocation or expiration of pre-authorization.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Productivity

If a user attempts a credit transaction at a merchant location, then the transaction can be completed quickly, but the transaction may be rejected by the credit card issuer causing inconvenience and potential fraud

Engineering Contradiction:

Improvetransaction completion speedVSAvoidtransaction authorization reliability

Core Design Contradiction:

ProductivityVSReliability

Solution Approach 1:

The system performs pre-authorization checks before the actual transaction occurs. The credit card issuer evaluates the transaction request in advance, checking account status, funds availability, and risk factors, so that when the user attempts the transaction at the merchant, it is already approved and can proceed without rejection.

Inventive Principle:

Principle #10Preliminary action

2Reliability

If a user calls a dedicated customer phone number to request pre-authorization, then transaction authorization reliability is improved, but the process becomes cumbersome and time-consuming

Engineering Contradiction:

Improvetransaction authorization reliabilityVSAvoidpre-authorization process ease

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The system enables automatic pre-authorization through electronic communication channels. The user initiates a pre-authorization request through a mobile device or computer, and the system automatically processes the request, evaluates risk factors, and provides authorization without requiring the user to manually call customer service representatives.

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The system replaces the mechanical telephone call process with electronic data transmission and automated processing. Instead of voice communication and manual evaluation, the system uses digital messages, algorithms, and automated decision-making to handle pre-authorization requests efficiently.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Reliability

If a user is in a foreign location or rural area with limited access, then the user may have difficulty contacting customer service for pre-authorization, but the need for transaction authorization remains

Engineering Contradiction:

Improvetransaction authorization reliabilityVSAvoidpre-authorization accessibility

Core Design Contradiction:

ReliabilityVSAdaptability or versatility

Solution Approach 1:

The system provides pre-authorization capabilities through multiple communication channels including mobile devices, computers, and other electronic platforms. This universal access allows users in any location - whether foreign countries or rural areas - to request pre-authorization without being limited to specific geographic locations or requiring local customer service infrastructure.

Inventive Principle:

Principle #6Universality (Multi-functionality)

4Object-affected harmful factors

If a high-risk user attempts a transaction without pre-authorization, then the user may expose account information to merchants, but the transaction may be denied resulting in embarrassment

Engineering Contradiction:

Improvefraud risk exposureVSAvoidtransaction attempt confidence

Core Design Contradiction:

Object-affected harmful factorsVSEase of operation

Solution Approach 1:

The system performs pre-authorization that provides the user with confidence before attempting the transaction. The user receives advance notification of authorization status, so they can proceed with the transaction knowing it will be approved, or avoid attempting it if denied, eliminating the embarrassment of rejection at the merchant location.

Inventive Principle:

Principle #10Preliminary action

Data Source

PatentUS12602694B2Systems and methods for mobile pre-authorization of a credit transaction

Publication Date: 2026.04.14 CAPITAL ONE SERVICES LLC

AI summary

A method for pre-authorizing a credit transaction may include receiving a pre-authorization request including a request identifier, a user identifier, a pre-authorization amount, a time duration identifier, and a vendor identifier, transmitting the pre-authorization request to a server remote from the user device, receiving a pre-authorization confirmation including the request identifier, a confirmation identifier, and a time duration identifier, and displaying a confirmation message that the pre-authorization request has been approved. A user device configured to pre-authorize a credit transaction may include a processor, a display in communication with the processor, a wireless transceiver in communication with the processor and a non-transitory memory storing instructions that, when executed by the processor, cause the processor to perform processing including receiving a pre-authorization request, transmitting the pre-authorization request to a server remote from the user device, receiving a pre-authorization confirmation, and displaying a confirmation message that the pre-authorization request has been approved.