Payment Processing Server for Split Transaction Authorization

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Solution Overview

Problem

Current systems for processing shared payments require merchants to manually split transactions and collect payment credentials from multiple individuals, making the process time-consuming and inefficient, especially when using electronic payment transactions.

Innovation Solution

A system and method for processing shared payments using a processing server that allows a single transaction to be initiated by a merchant, where multiple sets of payment credentials can be used to fund the transaction, eliminating the need for separate authorization processes by generating additional authorization requests for each participant's account.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If a merchant manually splits transactions and collects payment credentials from multiple individuals, then shared payment functionality is achieved, but the process becomes time-consuming and inefficient

Engineering Contradiction:
Improveshared payment functionalityVSAvoidprocessing time
Core Design Contradiction:
Adaptability or versatilityVSLoss of time

Solution Approach 1:

The patent introduces a payment processing system as an intermediary between the merchant and multiple payers. The system receives a single transaction request from the merchant, automatically identifies and contacts multiple payers, collects their payment credentials, and processes the split payment. This intermediary automation eliminates the time-consuming manual processes while maintaining shared payment functionality.

Inventive Principle:
Principle #24Intermediary (Mediator)

Solution Approach 2:

The system performs preliminary actions by pre-identifying multiple payers associated with the transaction and pre-collecting their payment credentials before the actual payment processing. This advance preparation allows the transaction to be completed more efficiently without manual intervention during the critical payment moment.

Inventive Principle:
Principle #10Preliminary action

2Reliability

If separate authorization processes are run for each transaction, then each payment is properly authorized, but the overall processing complexity increases

Engineering Contradiction:
Improveauthorization accuracyVSAvoidprocessing complexity
Core Design Contradiction:
ReliabilityVSDevice complexity

Solution Approach 1:

The patent merges multiple separate authorization processes into a single integrated authorization request. The system aggregates the payment credentials from multiple payers and submits one consolidated authorization request to the payment network, which then routes it to the appropriate issuing institutions. This merging maintains authorization reliability while significantly reducing processing complexity.

Inventive Principle:
Principle #5Merging (Combining)

Solution Approach 2:

The payment processing system performs multiple functions through a single authorization request: it authorizes payments from multiple payers, validates multiple payment credentials, and coordinates with multiple issuing institutions. This multi-functionality approach maintains comprehensive authorization while simplifying the overall process.

Inventive Principle:
Principle #6Universality (Multi-functionality)

3Adaptability or versatility

If multiple transactions are created from a single transaction, then shared payment among multiple accounts is achieved, but the merchant system requires specific programming modifications

Engineering Contradiction:
Improvemulti-account payment capabilityVSAvoidsystem implementation ease
Core Design Contradiction:
Adaptability or versatilityVSEase of manufacture

Solution Approach 1:

The patent uses a payment processing system as an intermediary that handles the complexity of creating multiple transactions from a single request. The merchant system simply submits one transaction request, and the intermediary system automatically creates and manages the multiple underlying transactions, eliminating the need for merchants to implement complex multi-transaction logic.

Inventive Principle:
Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent extracts the complex multi-transaction creation logic from the merchant system and places it in a dedicated payment processing system. This separation allows the merchant system to remain simple while the specialized system handles the complexity of multi-account payment processing.

Inventive Principle:
Principle #2Taking out (Extraction)

Data Source

PatentEP3743868B1Method and system for shared payments with tokenized and digitized payment cards
Publication Date: 2023.12.06 MASTERCARD INT INC
  • EP3743868B1 patent drawingFigure 1
  • EP3743868B1 patent drawingFigure 2
  • EP3743868B1 patent drawingFigure 3

AI summary

A method for processing shared payments for a transaction includes: receiving an authorization request for a payment transaction formatted according to one or more standards and including a first data element configured to store a transaction amount and a second data element configured to store a first set of payment credentials; identifying one or more sets of additional payment credentials; generating a new authorization request for each of the additional payment credentials including a first data element configured to store a separate amount and a second data element configured to store the respective additional payment credentials; transmitting the received authorization request and each generated new authorization request for processing; receiving an authorization response for the received authorization request and each generated new authorization request, each response including a response code indicating approval or denial; and transmitting the authorization response received for the received authorization request.