Peer-to-Peer Gift Card Transaction Router

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Solution Overview

Problem

Existing third-party gift card distribution methods, such as those using aggregators like Blackhawk Network, restrict direct negotiation between gift card providers and sellers, lack real-time transaction settlement, and do not allow peer-to-peer transaction routing, leading to delayed processing and controlled terms by intermediaries.

Innovation Solution

A peer-to-peer gift card transaction system with a router and database enables direct negotiation and agreement between providers and sellers for distribution and transaction processing, allowing real-time settlement and peer-to-peer transaction routing, facilitating direct communication and inventory management.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If gift card distribution aggregators are used to enable third-party distribution, then distribution channels are expanded, but direct negotiation between providers and sellers is restricted and terms are controlled by intermediaries

Engineering Contradiction:

Improvedistribution channel flexibilityVSAvoiddirect negotiation capability

Core Design Contradiction:

Adaptability or versatilityVSEase of operation

Solution Approach 1:

The patent extracts the intermediary aggregator from the distribution system by implementing a peer-to-peer architecture where providers and sellers communicate directly through standardized interfaces. This removes the constraint of intermediary-controlled terms while preserving multi-channel distribution capability.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The system segments the distribution function from the transaction processing function. Providers can distribute through multiple channels while maintaining direct control over transaction terms and settlement, separating these concerns into independent modular components.

Inventive Principle:

Principle #1Segmentation

2Adaptability or versatility

If gift card distribution aggregators are used, then distribution reach is increased, but real-time transaction settlement is not available and payment delays occur

Engineering Contradiction:

Improvedistribution reachVSAvoidtransaction settlement time

Core Design Contradiction:

Adaptability or versatilityVSLoss of time

Solution Approach 1:

The patent implements continuous real-time settlement processing between providers and sellers, eliminating the batch processing delays inherent in aggregator systems. Transactions are settled immediately as they occur, maintaining uninterrupted cash flow while preserving extended distribution reach.

Inventive Principle:

Principle #20Continuity of useful action

Solution Approach 2:

The manual, intermediary-mediated settlement process is replaced with an automated electronic peer-to-peer settlement system that processes transactions in real-time, substituting the mechanical aggregator workflow with direct digital settlement between parties.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Adaptability or versatility

If gift card distribution aggregators are used, then third-party distribution is enabled, but peer-to-peer transaction routing is not allowed and all transactions are directed through the aggregator

Engineering Contradiction:

Improvethird-party distribution capabilityVSAvoidtransaction routing complexity

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent introduces a lightweight messaging router as an intermediary that enables peer-to-peer communication without the complexity of aggregator systems. This mediator facilitates direct routing between providers and sellers using standardized messages, reducing overall system complexity while maintaining third-party distribution capability.

Inventive Principle:

Principle #24Intermediary (Mediator)

4Productivity

If conventional third-party distribution methods are used, then revenue from distribution channels is increased, but control over transaction terms is lost to intermediaries

Engineering Contradiction:

Improvedistribution revenueVSAvoidtransaction term control

Core Design Contradiction:

ProductivityVSEase of operation

Solution Approach 1:

Providers and sellers directly negotiate and control their own transaction terms through the peer-to-peer system, eliminating intermediary control. Each party manages their own agreements and terms while maintaining productive distribution relationships, enabling self-service term management.

Inventive Principle:

Principle #25Self-service

Data Source

PatentUS8660922B2Methods, systems, and computer readable media for peer-to-peer third party distribution of gift cards and peer-to-peer transaction routing therefor

Publication Date: 2014.02.25 DINKIN GARY T

AI summary

Methods, systems, and computer readable media for peer-to-peer third party distribution of gift cards and associated transaction processing are disclosed. In one method, a peer-to-peer gift card transaction router and a peer-to-peer gift card transaction database are configurable to facilitate peer-to-peer transaction processing for gift cards issued by a gift card provider and distributed by a third party seller where the gift card provider and the third party seller negotiate an agreement with each other regarding gift card distribution. A record is created in the database corresponding to the agreement. When a gift card transaction occurs, the record in the database is accessed and used to communicate notification of the gift card transaction from the gift card provider to the third party seller.