Payment Network Third-Party Data Distribution via Segmented Channels
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Solution Overview
Problem
Conventional payment systems primarily route transaction information for payment card authorization requests and responses, lacking the ability to efficiently distribute or generate information for third parties with a legitimate interest, such as product warranty tracking.
Innovation Solution
The payment network provides a two-way communication channel between the POS terminal and third parties, allowing transaction information to be transmitted for purposes beyond authorization requests, enabling enhanced services like product warranty recording and tracking.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If payment network is used only for authorization requests and responses, then payment processing reliability is maintained, but system versatility is limited
Solution Approach 1:
The patent segments the payment network's communication capabilities into distinct functional channels: traditional authorization/request-response pathways are separated from new data distribution pathways. This allows the system to expand versatility by enabling third-party data access while maintaining reliability through preserved separation of payment-critical functions from auxiliary data sharing functions.
Solution Approach 2:
The payment network infrastructure is enhanced to perform multiple functions beyond traditional authorization. The same network infrastructure now supports both payment processing and general data distribution to third parties, making the system universal while maintaining dedicated protocols for each function type to preserve reliability.
2Loss of information
If transaction information is distributed to third parties via payment network, then information availability is improved, but system complexity increases
Solution Approach 1:
The patent introduces intermediary components within the payment network architecture that mediate between transaction sources and third-party recipients. These intermediaries manage information distribution, filter data appropriately, and handle routing, thereby improving information availability to authorized parties while containing system complexity through specialized intermediary layers rather than direct peer-to-peer connections.
Solution Approach 2:
The system performs preliminary actions by establishing predefined rules, permissions, and data distribution protocols before actual transaction information needs to be shared. Third parties are pre-authenticated and data routing paths are pre-configured, which simplifies real-time information distribution while maintaining security and reducing operational complexity.
3Adaptability or versatility
If two-way communication channel is added to payment network, then service functionality is enhanced, but communication protocol complexity increases
Solution Approach 1:
The communication protocol is designed to be dynamic rather than static. The system can adapt message formats, data fields, and communication patterns based on the specific transaction type and recipient requirements. This dynamic approach enables enhanced service functionality while managing protocol complexity through context-aware adaptability rather than rigid comprehensive protocols.
Solution Approach 2:
Different portions of the communication protocol are optimized for different functions. Authorization-related communications maintain simple, standardized formats, while data distribution to third parties utilizes enhanced formats with additional fields. This local quality approach allows functionality enhancement in non-critical paths without increasing complexity in payment-critical pathways.
Data Source
AI summary
A communication channel is provided between a transaction acquirer and a payment network, for the purpose of transmitting payment card account transaction authorization requests. Via the communication channel the payment network may receive a message containing additional information. The additional information may originate at the point of sale and may be in addition to a PAN (primary account number) or the like. The payment network may send a message including the additional information to an entity that is neither a payment account issuer nor the transaction acquirer.