Payment Card Network Resale Mediation for Forward-Sold Goods
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Solution Overview
Problem
Existing systems do not effectively allow for the resale of forward-sold goods and services, where changes in desirability due to unforeseen events or market conditions result in purchasers being unable to recover their investment.
Innovation Solution
A system and method that facilitates the resale of forward-sold goods and services by establishing conditions for resale, allowing partial or full refunds to original purchasers and charging new purchasers, utilizing a four-party payment card system with a computer-readable storage medium to execute instructions for processing resale transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If forward-sold goods are purchased via credit/debit card with immediate charging, then the merchant receives payment upfront, but the purchaser cannot recover any portion of the price if the goods become less desirable before delivery
Solution Approach 1:
The patent introduces a payment card network as an intermediary between the merchant and purchaser to enable resale transactions. The network facilitates chargebacks and refunds by mediating between the parties, allowing the original purchaser to recover funds and a new purchaser to acquire the goods through a structured transaction process that involves all stakeholders including the merchant, issuing bank, and acquiring bank.
Solution Approach 2:
The system establishes predetermined rules and conditions for resale before the actual resale transaction occurs. These pre-established guidelines define eligible scenarios, refund amounts, and transaction procedures, enabling rapid processing when resale conditions are met without requiring complex real-time negotiations or approvals.
2Productivity
If resale transactions are fully automated through payment network, then processing speed increases, but control over resale conditions and pricing becomes difficult to maintain
Solution Approach 1:
The merchant predetermines resale conditions, eligible scenarios, and pricing parameters before the resale transaction occurs. This preliminary configuration allows the automated system to simply verify against pre-set criteria rather than making complex decisions in real-time, maintaining control while enabling fast processing.
Solution Approach 2:
The system incorporates feedback mechanisms where the payment card network communicates transaction outcomes and condition verification results back to the merchant and participating banks. This feedback loop ensures that automated transactions remain aligned with established resale policies and allows for monitoring and adjustment of the resale program effectiveness.
Data Source
AI summary
A system and a method for the resale of one or more forward-sold goods and/or services allows a transaction to be specified as one in which the goods or services may be resold by the purchaser until a time close to actual delivery. The merchant maintains control of the conditions of the resale. If a resale occurs, the merchant receives a commission. The account of the original purchaser is credited with the resale price minus the commission. The availability of goods for resale can be determined by searching a web site for such goods.