Multi-Merchant Payment Processing via Segmented Authorization
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current systems for processing payments across multiple merchants are complex and costly, limiting small merchants' options for collaborating and requiring intermediaries, while consumers face issues with incomplete orders due to payment processing challenges.
Innovation Solution
A method and system for processing single orders from multiple vendors by generating and transmitting separate authorization requests for each merchant, allowing for direct payment processing and easier tracking, with the ability to handle declined payments and alternative funding sources.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If an aggregator collects total payment for multiple merchants and distributes funds, then payment processing for multi-merchant orders is enabled, but the aggregator must maintain significant payments and accounting infrastructure, limiting the number of entities that can perform this function
Solution Approach 1:
The patent segments the payment processing into separate authorization requests for each merchant involved in the order. Instead of collecting total payment and distributing funds through a complex aggregator infrastructure, the system generates individual authorization requests for each merchant's portion, simplifying the infrastructure requirements while enabling multi-merchant order processing
2Device complexity
If a single authorization request is used for multiple merchants, then payment processing is simplified, but there is no way for the consumer to prevent the order from occurring if one product cannot be obtained
Solution Approach 1:
The patent performs preliminary actions by generating separate authorization requests for each merchant before finalizing the order. This allows the system to verify that all products can be obtained and secured before committing the consumer to the purchase, enabling order cancellation if any product is unavailable while maintaining simplified payment processing
Data Source
AI summary
A method and system for providing multiple authorization request messages for multiple products offered by respectively different merchants in a single order are disclosed. If one of the authorization request messages is declined, then an order interrupt message may be sent to the consumer. In order interrupt message may indicate that the single order is canceled, even though authorization request messages for the purchase of other products in the order are approved.