Payment Processing System for Incentive Program Data Segmentation
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Solution Overview
Problem
Conventional payment processing systems are not easily adaptable for spend-and-get incentive programs involving unaffiliated stores and specific name brand products, requiring consumers to manually track purchases and redeem rewards, which is inefficient and limited to specific store chains.
Innovation Solution
A payment processing system that processes both financial and non-financial transaction data, allowing for the implementation of incentive programs by transmitting data through a transaction expeditor, acquirer, and issuer, enabling rewards based on purchase history and program rules, even across multiple stores and brands.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If conventional payment processing systems are used, then financial transactions can be processed, but the systems are not adaptable for spend-and-get incentive programs involving unaffiliated stores and specific name brand products
Solution Approach 1:
The patent segments transaction data into financial transaction data (for payment processing) and non-financial transaction data (for incentive program tracking). This segmentation allows the payment processing system to handle incentive program requirements without fundamentally changing the core financial processing functionality, thereby improving adaptability while maintaining manageable system complexity.
Solution Approach 2:
The payment processing system is enhanced to perform multiple functions: processing financial transactions, tracking non-financial transaction data, and managing incentive program rules. By making the system universal capable of handling both traditional payment processing and incentive program management, the system becomes adaptable to various incentive programs across unaffiliated stores and brands without requiring separate systems.
2Productivity
If consumers manually track purchases and redeem rewards, then incentive programs can be implemented, but the process is inefficient and limited to specific store chains
Solution Approach 1:
The system implements self-service by automatically tracking consumer purchases and managing reward redemption through the payment processing infrastructure. Consumers simply use their existing payment cards, and the system automatically captures transaction data, applies incentive program rules, and manages reward accumulation without requiring consumer intervention for tracking or redemption processes.
Solution Approach 2:
The system incorporates feedback mechanisms where transaction data is continuously captured and processed against incentive program rules. The system provides real-time or near-real-time feedback to consumers about their reward status and eligibility, eliminating the need for manual tracking and providing immediate information about reward availability.
3Reliability
If consumers mail proof of purchase indicia for redemption, then manufacturer rewards can be distributed, but the process takes several weeks and requires additional mailing time
Solution Approach 1:
The patent replaces the mechanical mailing system with an electronic data processing system. Instead of consumers physically mailing proof of purchase indicia, the system electronically captures transaction data at the point of sale, processes it through the payment processing network, and automatically manages reward redemption electronically, eliminating mailing time and accelerating the entire reward distribution process.
Solution Approach 2:
The system performs preliminary action by capturing and storing transaction data at the point of purchase, rather than waiting for consumers to later mail proof of purchase. The system proactively tracks purchases, accumulates reward eligibility, and prepares for automatic reward distribution, significantly reducing the time from purchase to reward receipt.
Data Source
AI summary
A payment processing system enables a consumer to purchase items at a merchant using an account provided by an issuer. Financial data related to payment for the purchase are sent by the merchant through an acquirer and a transaction expeditor to the issuer. The issuer responds by determining whether to authorize the purchase and if authorized, sends a notification back to the merchant. The acquirer also issues non-financial data that is conveyed by the transaction expeditor to a recipient connected to the payment processing system. The financial and non-financial data for the same transaction may be sent in separate messages and a technique is provided for matching those messages at the recipient. Different types of non-financial data can be conveyed, such as identification of the items being purchased which the recipient uses to determine whether the consumer should receive a reward under a product purchase incentive program.