Payment Risk Analysis via Background Device Data Collection
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Solution Overview
Problem
Payment providers face challenges in performing risk analysis for transactions due to incomplete or corrupted device information collected by merchant applications, which can lead to failed risk assessments and declined transactions.
Innovation Solution
The payment provider server initiates a push communication to the consumer device to collect additional device information, which is gathered in the background without user awareness, ensuring that all necessary risk information categories are complete and accurate for risk analysis.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If the merchant application collects device information, then the risk analysis can be performed, but the device information may be incomplete or corrupted leading to failed risk assessments
Solution Approach 1:
The payment provider application acts as an intermediary between the merchant application and the risk analysis system. It collects and transmits device information to the payment provider server, ensuring that complete and accurate information is available for risk assessment, thereby resolving the issue of incomplete or corrupted device information from the merchant application
Solution Approach 2:
The system implements a feedback mechanism where the payment provider server receives device information, assesses completeness, and can request additional information through push notifications if needed. This feedback loop ensures that the risk analysis receives complete and accurate device information, improving reliability while managing information gaps
2Reliability
If additional device information is collected through user interaction, then the risk analysis accuracy improves, but the user experience is interrupted
Solution Approach 1:
The payment provider application automatically collects device information in the background without requiring user interaction. The application self-services the information collection process by gathering data from device sensors and system information, eliminating the need to interrupt users for additional inputs while maintaining high risk assessment accuracy
Solution Approach 2:
The system performs preliminary collection of device information at the time of the original interaction, storing it for later use in risk analysis. This preliminary action ensures that all necessary information is captured upfront without requiring follow-up user interactions, thereby maintaining both accuracy and user experience continuity
Data Source
AI summary
A system is configured to perform operations that include receiving first device information corresponding to a consumer device of a _Sonsumer, where the first device information is collected by a merchant application of a_specmerchant in response to a payment transaction request being initiated between the consumer and the merchant. The operations further include determining that the first device information fails to satisfy a risk analysis threshold for performing a risk analysis process and in response, transmitting a push communication to the consumer device. The push communication includes instructions that cause the consumer device to automatically transmit, to the system, second device information corresponding to the consumer device. Additionally, the operations include based on the second device information, executing the risk analysis process with respect to the payment transaction request.