Network Service Distribution via External Processing Segmentation
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Solution Overview
Problem
Existing systems face challenges in integrating advanced value-added services from external processing networks into domestic transactions within restricted regions, due to regional regulations that require these services to be physically present within the region.
Innovation Solution
The system integrates one or more value-added services hosted outside the restricted region into on-soil network services within the region by forwarding authorization requests to an external processing network, which performs value-added services and returns the results to the domestic processing network for transaction authorization and processing.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If value-added services are hosted outside the restricted region, then service functionality and transaction processing efficiency are improved, but regional regulations requiring physical presence within the region are violated
Solution Approach 1:
The system segments the service delivery architecture into multiple components: an external processing network located outside the restricted region that performs value-added services, and a domestic processing network located within the region that handles transaction authorization and messaging. This segmentation allows each component to be positioned optimally - the external network provides advanced services while the domestic network ensures regulatory compliance through local presence.
Solution Approach 2:
The domestic processing network acts as an intermediary between the external processing network and the switching network. It receives authorization requests from the external network, performs local processing to satisfy regional regulations, and forwards messages to the switching network. This intermediary role enables the system to leverage external services while maintaining compliance with local requirements.
2Reliability
If value-added services are physically present within the restricted region, then compliance with regional regulations is ensured, but service functionality and processing efficiency are limited
Solution Approach 1:
The system divides the processing functions between domestic and external networks, allowing the domestic network to maintain regulatory compliance through physical presence while the external network provides advanced value-added services that enhance processing efficiency. This segmentation enables both compliance and efficiency to coexist.
Solution Approach 2:
The domestic processing network performs multiple functions: it acts as a local presence to satisfy regulatory requirements, processes authorization requests, and communicates with both the external processing network and the switching network. This multi-functionality allows a single component to address both compliance and operational needs.
3Adaptability or versatility
If advanced value-added services are integrated into domestic transactions, then service capability is enhanced, but system complexity increases
Solution Approach 1:
The domestic processing network serves as an intermediary that simplifies the integration of external services into the domestic transaction system. It handles the complexity of communicating with external networks while presenting a standardized interface to the switching network, thereby enhancing service capability without proportionally increasing system complexity.
Solution Approach 2:
Instead of integrating external services directly into the domestic network infrastructure, the system inverts the approach by having the domestic network act as a client to external services. This inversion simplifies the architecture by allowing the domestic network to leverage existing external service capabilities rather than building complex integration layers.
Data Source
AI summary
Systems and methods are provided for use in integrating one or more value added service(s) associated with network messaging into a domestic processing network. One example computer-implemented method includes receiving, from a domestic processing network, an authorization message for a transaction to an account. The authorization message includes a first identifier associated with a first institution, a second identifier associated with a second institution, and a switch identifier. The method also includes identifying the transaction as a domestic transaction in a first region, based on the first identifier, the second identifier and/or the switch identifier included in the authorization message, and performing at least one value added service for the transaction, without seeking authorization of the transaction. The method then includes returning a result of the at least one value added service to the domestic processing network.