Automated Payment Card Selection by Merchant Category
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Solution Overview
Problem
Users face difficulty in selecting the most suitable payment card for transactions due to the need to manually choose between multiple financial instruments, which can be burdensome and inefficient, especially when some cards offer better rewards or terms for specific merchant categories.
Innovation Solution
A computer-implemented method that associates multiple financial accounts with a user account, determines the merchant category based on transaction data, and automatically selects the most suitable financial account for the transaction, using a database of merchant categories and geo-location information to recommend or default the best card for the merchant category.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If the user manually selects a card for each transaction, then the user can choose the most suitable card for specific merchant categories, but the operation becomes burdensome and inefficient
Solution Approach 1:
The system automatically selects the appropriate financial account based on merchant category without requiring user intervention. The payment system analyzes the merchant category code from the transaction and autonomously chooses the most suitable card from the user's accounts, eliminating manual selection while ensuring optimal card usage for rewards and benefits
Solution Approach 2:
The user pre-configures multiple financial accounts with the payment application before transactions occur. The system stores these accounts and their associated preferences in advance, enabling automatic selection during transactions without requiring real-time user input or decision-making
2Ease of operation
If the user assigns a card for all transactions, then the operation is simplified, but the user cannot optimize for specific merchant categories
Solution Approach 1:
The system segments the user's financial accounts by merchant category, creating distinct associations between specific cards and specific merchant types (e.g., groceries, gas stations, restaurants). This segmentation allows the system to automatically select the most appropriate card based on the current transaction's merchant category while maintaining ease of operation
Solution Approach 2:
The card selection becomes dynamic rather than static. Instead of assigning one card for all transactions, the system adapts the card selection based on the merchant category of each transaction. The payment application dynamically chooses from multiple configured accounts based on real-time transaction context, providing both simplicity and optimization
3Productivity
If the system automatically selects a card based on merchant category, then the efficiency is improved, but the system complexity increases
Solution Approach 1:
The payment application serves as an intermediary layer between the user's multiple financial accounts and the transaction processing system. It automatically analyzes merchant category codes and selects the appropriate card without requiring complex user interfaces or user intervention, improving efficiency while managing complexity within the payment application itself
Solution Approach 2:
The payment application performs multiple functions: it stores multiple financial accounts, analyzes merchant category codes, determines the optimal card selection, and processes transactions. By consolidating these functions in a single multi-functional application, the system achieves high transaction efficiency without requiring multiple separate systems or complex infrastructure
Data Source
AI summary
The invention provides a computer-implemented method to select a preferred card for a purchase based on a merchant category. In the exemplary method, the computer associates a plurality of financial accounts with an account of a user; associates a merchant category with a financial account associated with the user account; and receives data from a transaction. The computer can maintain a database of merchant categories; determine the category of the merchant based on the data associated with the transaction; and extract data to identify the merchant, such as merchant name, address, or telephone number. The computer can determine the geo-location of the user device and determine the merchant identify from the location. The computer can determine a merchant category of the merchant from the merchant identity; select the financial account associated with the merchant category of the merchant; and communicate the financial account selected to conduct the transaction.