Payment Network Server Auto-Update Card Data
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Solution Overview
Problem
In card-not-present account-on-file transactions, merchants face challenges in updating payment card information when card details change, leading to authorization denials due to outdated information, which complicates the process for both merchants and cardholders.
Innovation Solution
A system and method that automatically detect authorization denials caused by outdated payment card information and proactively transmit updated information from a payment network server to the acquirer, ensuring that merchants can resubmit transactions with the latest details, thereby reducing the need for manual updates and improving transaction success rates.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If merchants store payment card information for account-on-file transactions, then transaction convenience is improved, but information accuracy deteriorates over time due to card changes
Solution Approach 1:
The system proactively queries the issuer for updated payment card information before submitting authorization requests. This preliminary action ensures that merchants use current card details while maintaining the convenience of automated transactions, resolving the contradiction between stored information convenience and information accuracy.
Solution Approach 2:
The system implements a feedback mechanism where authorization denial responses trigger automatic queries to the issuer for updated card information. This closed-loop feedback ensures information accuracy is maintained while preserving the automated nature of account-on-file transactions.
2Reliability
If merchants manually update payment card information, then information accuracy is improved, but operational complexity increases
Solution Approach 1:
The system performs automatic self-service by querying the issuer for updated card information and submitting corrected authorization requests without merchant intervention. This eliminates the need for manual updates while maintaining information accuracy, reducing operational complexity for merchants.
Solution Approach 2:
The payment network server acts as an intermediary between the merchant and issuer, automatically managing the update process. This intermediary handles the complexity of communication and coordination, allowing merchants to benefit from accurate information without direct involvement in the update process.
3Reliability
If merchants inquire with cardholders for updated information, then information accuracy is improved, but time consumption increases
Solution Approach 1:
The system replaces the mechanical process of manual communication with cardholders with an automated electronic query system. The payment network server automatically contacts the issuer to retrieve updated card information, eliminating time-consuming manual inquiries while ensuring information accuracy.
Solution Approach 2:
The payment network server serves as an intermediary that automatically communicates with the issuer on behalf of the merchant, eliminating the need for direct merchant-cardholder communication. This intermediary process significantly reduces time consumption while maintaining accurate information updates.
4Productivity
If the system automatically queries for updated information, then transaction success rate is improved, but system complexity increases
Solution Approach 1:
The payment network server acts as an intermediary that manages the automatic query process, handling communication with issuers and coordination of information updates. This centralized intermediary approach improves transaction success rates while containing system complexity within the payment network infrastructure rather than requiring complex changes at the merchant level.
Data Source
AI summary
In one aspect, a method for processing a card-not-present account-on-file transaction is provided. The transaction involves a cardholder using payment card information stored by a merchant. The method includes receiving an authorization request message for the transaction, the authorization request message received at a payment network from an acquirer associated with the merchant and receiving an authorization response message, the authorization response message received at the payment network from an issuer. The authorization response includes a denial indicator indicating that the transaction has been denied. The method further includes querying a database coupled to the payment network to determine whether the database includes updated payment card information for a payment card associated with the transaction. The method additionally includes transmitting the updated payment card information associated with the payment card account identifier associated with the transaction to the acquirer for the acquirer to communicate to the merchant.