Payment Gateway Risk Profiling for Multi-Platform Transaction Visibility

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Solution Overview

Problem

Payment vehicle issuers lack visibility into consumers' spending behaviors across multiple payment vehicles, making it difficult to make informed authorization decisions, especially in industries like gaming and betting where transaction velocity and risk assessment are critical.

Innovation Solution

A payment gateway computing system that monitors and analyzes transactional behavior across multiple merchants and payment vehicles, generating a risk profile based on historical data to provide a comprehensive view for authorization decisioning.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If a consumer uses multiple payment vehicles across different merchants, then payment versatility and consumer choice are improved, but the financial institution loses visibility into the consumer's complete spending behavior

Engineering Contradiction:

Improvepayment vehicle usageVSAvoidspending behavior visibility

Core Design Contradiction:

Adaptability or versatilityVSLoss of information

Solution Approach 1:

The patent introduces a payment gateway computing system as an intermediary between merchants, payment processors, and the financial institution. This gateway aggregates transaction data from multiple payment vehicles and merchants, then provides unified spending behavior information to the financial institution, resolving the information loss problem while maintaining payment versatility

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The system merges transaction data from multiple sources (different payment vehicles, different merchants, different transactions) into a unified consumer profile. By combining these分散 data points, the financial institution gains comprehensive visibility into spending behavior across all payment vehicles used by the consumer

Inventive Principle:

Principle #5Merging (Combining)

2Ease of operation

If the financial institution lacks complete spending behavior data, then authorization decision-making is simplified, but authorization accuracy and risk assessment deteriorate

Engineering Contradiction:

Improveauthorization decisioningVSAvoidauthorization decision accuracy

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The system performs preliminary aggregation and analysis of spending behavior data before authorization decisions are made. The payment gateway continuously builds and updates consumer spending profiles in advance, so when an authorization request arrives, the financial institution already has comprehensive behavioral data to make accurate decisions

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The system implements feedback loops where transaction data is continuously collected, analyzed, and fed back into consumer profiles. This ongoing feedback process ensures that authorization decisions are based on the most current and complete spending behavior information available

Inventive Principle:

Principle #23Feedback

3Measurement precision

If the system monitors transactions across multiple platforms, then risk profiling accuracy is improved, but system complexity increases

Engineering Contradiction:

Improverisk profile accuracyVSAvoidmulti-platform monitoring system

Core Design Contradiction:

Measurement precisionVSDevice complexity

Solution Approach 1:

The payment gateway computing system is designed as a universal platform that handles multiple functions: data collection from various merchants, transaction processing, spending behavior analysis, and risk profile generation. By making the system multi-functional, it can monitor multiple platforms through a single unified infrastructure rather than requiring separate systems for each function

Inventive Principle:

Principle #6Universality (Multi-functionality)

Data Source

PatentUS20230245089A1Multi-platform electronic payment transaction risk profiling

Publication Date: 2023.08.03 WORLDPAY LLC

AI summary

Technologies for enhancing payment transactions include a payment gateway computing system. The payment gateway computing system receives authorization request messages from point of sale systems of one or more betting-related merchants. The transactional information for each of the plurality of authorization requests is cataloged into a repository as historical payment data. A risk profile based on the historical payment data associated with a cardholder is generated. The risk profile can be correlated to transactional velocity or other parameter. The risk profile is transmitted to one of a plurality of payment vehicle issuers that can utilize the risk profile for authorization decisioning. Therefore, the payment vehicle issuer can make authorization decisioning with expanding insight into the cardholder's gaming-related purchase activity.