Network Interaction Reversal via Direct Payee Bank Messaging
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Solution Overview
Problem
Conventional real-time network interactions often enter an undefined state due to timeouts or delays, lacking a clear mechanism to reverse transactions and restore funds to the payor, leading to uncertainty and increased network traffic.
Innovation Solution
A system and method that enables direct communication between the processing network and the payee bank to initiate a reversal of transactions, using ISO 20022 messaging to ensure a deterministic state by refunding funds directly to the payor account, thereby avoiding additional network traffic.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If conventional real-time network interactions are used, then transaction speed is improved, but system reliability deteriorates due to undefined states from timeouts or delays
Solution Approach 1:
The system performs preliminary actions by establishing a reversible transaction mechanism before the interaction completes. When a timeout or delay occurs, the system can immediately initiate a reversal process that refunds funds to the payor account, preventing the system from entering an undefined state and maintaining reliability while preserving real-time transaction speed.
2Ease of operation
If conventional reversal mechanisms are used, then transaction reversal is enabled, but network traffic increases due to additional messaging
Solution Approach 1:
The system extracts the reversal functionality from the conventional multi-party messaging chain and implements it as a direct mechanism between the processing network and the payee bank. This eliminates unnecessary intermediate messaging steps, reducing network traffic while maintaining full reversal capability. The system takes out only the essential reversal action needed to restore funds without the overhead of conventional reversal protocols.
3Reliability
If direct communication with payee bank is implemented, then system reliability is improved by ensuring deterministic state, but device complexity increases
Solution Approach 1:
The processing network acts as an intermediary that directly communicates with the payee bank to initiate reversals. This intermediary role simplifies the overall system architecture by centralizing the reversal coordination function, avoiding the need for complex peer-to-peer communication protocols between multiple parties. The intermediary approach ensures deterministic state restoration while managing complexity through a single point of coordination.
Data Source
AI summary
Systems and methods are provided for reversing one or more network interactions. One example computer-implemented method includes receiving, from a first acquirer, an authorization message associated with a network interaction, which includes a transfer from a payor account to a payee account. In connection therewith, the authorization messaging is consistent with a first message standard, and the payee account is issued by a second acquirer. The method also includes communicating the authorization message to an issuer of the payor account and initiating a timer for the network interaction. The method then includes, in response to expiration of the initiated timer, without a response message specific to the network interaction, generating and communicating, to the first acquirer, a timeout response message for the network interaction consistent with the first standard.