Network Server Discount Application Automation
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Solution Overview
Problem
Applying discounts to transactions at the point of sale is time-consuming and prone to human error, and small to mid-sized merchants lack the resources to develop and maintain the necessary software and computing infrastructure for efficient discount management.
Innovation Solution
A computer-implemented method and system that automatically applies discounts by processing payment transactions through a network server, utilizing a merchant offer database to determine eligibility and calculate discounted transaction amounts, thereby reducing the administrative and technical burden on merchants.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If discounts are applied manually at the point of sale by merchant employees, then merchants can offer discounts to consumers, but the process becomes time-consuming and prone to human error
Solution Approach 1:
The patent introduces a payment network server as an intermediary between the merchant and the consumer. This server automatically receives transaction information, applies the appropriate discount rules from the merchant offer database, and processes the discounted amount. This eliminates the need for manual discount calculation by merchant employees, thereby reducing transaction processing time and eliminating human error while maintaining the discount functionality.
Solution Approach 2:
The system enables automatic discount application through self-service mechanisms. The payment network server autonomously queries the merchant offer database, determines eligibility for discounts based on transaction details, calculates the discounted amount, and processes the transaction without requiring manual intervention from merchant staff. This automation directly addresses the time-consuming nature of manual discount application.
2Measurement precision
If merchants implement their own discount management systems, then they can control and apply discounts accurately, but small and mid-sized merchants lack the resources to develop and maintain the necessary software and computing infrastructure
Solution Approach 1:
The patent extracts the complex discount management functionality from the merchant's system and relocates it to the payment network server. The merchant offer database and discount calculation logic are maintained by the payment network rather than requiring merchant-owned infrastructure. This allows small and mid-sized merchants to access accurate discount calculation capabilities without bearing the burden of developing or maintaining complex software and computing systems.
Solution Approach 2:
The payment network server provides a universal discount management solution that serves multiple merchants simultaneously. Instead of each merchant needing their own dedicated discount management system, the payment network implements a shared infrastructure that handles discount calculations for all participating merchants. This multi-functional approach reduces the device complexity and resource requirements for individual merchants while maintaining accurate discount application.
3Adaptability or versatility
If manual discount application is used, then merchants can offer brand-specific discounts, but employees may not be aware of the correct discount to apply, creating uncertainty for customers
Solution Approach 1:
The system implements automatic feedback mechanisms where the payment network server continuously queries the merchant offer database to retrieve current discount rules and eligibility criteria. This ensures that the most up-to-date discount information is always applied, eliminating uncertainty for customers. The server receives transaction details, automatically determines the correct discount based on pre-configured rules, and applies it accurately without relying on employee knowledge or memory.
Data Source
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AI summary
Methods and systems for processing a payment transaction are provided. A network sever receives an authorization request message for requesting authorization of the payment transaction from an acquiring institution server. The network server determines, based on the authorization request message, that the payment transaction is eligible for a discount. The network server calculates a discounted transaction amount for the payment transaction, based at least on the transaction amount and a discount rule associated with a merchant. The network server transmits an updated authorization request message for requesting authorization of the payment transaction for the discounted transaction amount to an issuing institution server. Upon receiving a successful authorization response message from the issuing institution server, the network server transmits a further authorization response message for authorizing the payment transaction for the discounted transaction amount to the acquiring institution server.