Multi-leg Transaction Coupling and Authorization
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Solution Overview
Problem
In multi-leg transactions, the sequential and individual processing of sub-transactions often leads to inefficiencies and inconvenience for buyers, vendors, and financial entities, as the authorization failure of one sub-transaction can frustrate or render impractical the entire transaction, resulting in refunds or the need for buyers to find replacements.
Innovation Solution
Designating two or more sub-transactions as a coupled group, where all sub-transactions are authorized prior to execution, and if any sub-transaction is unauthorized, the entire multi-leg transaction is prevented from being executed, ensuring an 'all or nothing' semantic.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of manufacture
If sub-transactions are authorized and executed individually and sequentially, then the processing flow is simple and easy to implement, but authorization failure of one sub-transaction can frustrate or make impractical the entire multi-leg transaction, resulting in refunds or buyer inconvenience
Solution Approach 1:
The system performs preliminary authorization checks for all sub-transactions before executing any of them. The transaction coordination service evaluates whether each sub-transaction can be authorized and executed successfully before committing to the multi-leg transaction, preventing partial executions and ensuring all conditions are met upfront.
Solution Approach 2:
A transaction coordination service acts as an intermediary between the payment processing system and the multi-leg transaction components. This coordinator manages the authorization and execution of multiple sub-transactions, ensuring they are processed as an atomic unit where all or none are executed, thereby maintaining transaction reliability.
2Reliability
If all sub-transactions are authorized prior to execution in a coupled group, then transaction reliability is improved by preventing partial executions, but the processing complexity and time required increases
Solution Approach 1:
The multi-leg transaction is segmented into distinct sub-transactions that can be independently authorized and executed. The system divides the overall transaction into manageable components (e.g., product purchase, shipping, taxes) while maintaining coordination through the transaction coordination service, reducing processing complexity through modular design.
Solution Approach 2:
The system maintains continuous processing by authorizing and executing sub-transactions in a coordinated manner without unnecessary interruptions. Once authorization is obtained for all sub-transactions, the system executes them continuously without pausing between individual executions, improving efficiency while maintaining reliability.
3Ease of operation
If sub-transactions are processed sequentially, then the processing logic is straightforward, but inefficiencies occur when one sub-transaction fails requiring refunds or replacement searches
Solution Approach 1:
The system performs preliminary authorization checks for all sub-transactions before execution, ensuring that all conditions are met before any money changes hands. This prevents the need for refunds or replacement searches by validating the entire transaction chain upfront, improving efficiency without sacrificing operational simplicity.
Solution Approach 2:
The transaction coordination service implements feedback mechanisms to monitor the authorization status of each sub-transaction. If any sub-transaction fails authorization, the system immediately stops processing and notifies relevant parties, preventing wasted processing efforts and enabling quick response to transaction issues.
Data Source
AI summary
An embodiment includes a method of multi-leg transaction processing. The method includes receiving from a merchant server, a designation of two or more sub-transactions of a pending multi-leg transaction as a coupled group. The execution of any of the two or more sub-transactions in the coupled group is dependent on prior authorization of each of the two or more sub-transactions. The method includes receiving transaction input used to indicate conditional execution of the multi-leg transaction. Prior to execution of the multi-leg transaction and in substantially real time, the method includes determining whether each of the two or more sub-transactions in the coupled group is authorized. In response to any of the two or more sub-transactions being unauthorized, the method includes preventing execution of the multi-leg transaction. In response to authorization of each of the two or more sub-transactions, the method includes executing the multi-leg transaction non-sequentially.