Payment Card Circuit Authorization Fallback
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Solution Overview
Problem
Credit card transactions often get declined due to various reasons such as reaching credit limits, account freezes, or human errors, leading to negative customer experiences and increased instances of denied purchases.
Innovation Solution
A method where a transaction processing platform receives declined authorization requests for a payment card, references a circuit of associated payment cards, selects an alternative card based on association data and ranking, and sends a second authorization request to the issuer server, allowing the alternative card to act as a proxy or payment tool for the declined transaction.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a single payment card is used for transactions, then the authorization process is simple, but the transaction may be declined due to credit limits, account freezes, or human errors
Solution Approach 1:
The patent combines multiple payment cards into a unified payment ecosystem where cards are linked through association data. When one card is declined, the system automatically tries other linked cards, merging their authorization capabilities to improve success rate while maintaining a single user interface.
Solution Approach 2:
The payment system is designed to perform multiple functions: primary card authorization, alternative card authorization, and automatic fallback mechanisms. This multi-functionality allows the same system to handle both simple single-card transactions and complex multi-card scenarios without requiring separate systems.
2Adaptability or versatility
If multiple alternative payment cards are maintained in a circuit, then declined transactions can be automatically authorized through alternative cards, but the system complexity increases due to association data management and card selection logic
Solution Approach 1:
The system performs preliminary actions by pre-establishing circuits of associated payment cards and storing association data before transactions occur. This allows the system to have alternative cards ready and configured in advance, enabling automatic fallback without complex real-time decision-making during transaction processing.
Solution Approach 2:
The transaction processing platform acts as an intermediary that manages the complexity of multiple card associations. It stores association data, determines card relationships, and handles the logic of selecting alternative cards, shielding the user from this complexity while providing versatile payment options.
3Productivity
If automatic fallback to alternative cards is implemented, then customer experience is improved by reducing denied purchases, but additional processing steps and communication with multiple issuer servers are required
Solution Approach 1:
By pre-configuring circuits of associated cards and storing association data in advance, the system eliminates the need for complex real-time card selection logic. When a card is declined, the system can immediately try the next card in the pre-established circuit, reducing additional processing time while maintaining automatic fallback capability.
Data Source
AI summary
A method for authorizing a transaction request for a payment card is disclosed, the method comprising the steps of receiving at a transaction processing platform, data indicating that a first authorization request for the payment card has been declined; referencing at the transaction processing platform, a circuit of payment cards where the circuit of payment cards comprises the payment card, at least one other payment card and association data indicative of the association between the payment card and the at least one other payment card; selecting at the transaction processing platform, a second payment card from the at least one other payment card based on the association data; identifying at the transaction processing platform, an issuer server associated with the second payment card; and sending from the transaction processing platform to the issuer server, a second authorization request for the second payment card.