Payment Routing Platform Using Dynamic Processor Selection
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Solution Overview
Problem
Online merchants face challenges in completing payment transactions due to issues with third-party payment processors, leading to poor customer experience and financial risks, especially when using optimistic fulfillment for digital items, as they may deliver items before receiving payment approval or guarantee.
Innovation Solution
A computer-implemented mechanism for optimized routing and processing of payment transactions that dynamically selects the most suitable payment processor based on various attributes such as endpoint availability, customer preferences, transaction type, and system performance, utilizing machine learning to improve processing efficiency and reduce the risk of transaction declines.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a single third-party payment processor is used, then the system is simple to operate, but the reliability of payment processing deteriorates when the processor becomes inaccessible
Solution Approach 1:
The patent combines multiple payment processors into a unified system where the merchant system can interact with multiple processors through a single interface. This merging approach maintains simplicity for the merchant while achieving high reliability through processor redundancy.
Solution Approach 2:
The merchant system is designed to universally interact with multiple types of payment processors through standardized interfaces. This multi-functionality allows the system to switch between different processors based on availability, maintaining reliability without requiring complex processor-specific implementations.
2Reliability
If payment transaction processing is delayed to ensure processor availability, then processing reliability improves, but customer experience deteriorates due to slower transaction completion
Solution Approach 1:
The system performs preliminary actions by proactively detecting processor accessibility issues and switching to alternative processors before transactions fail. This advance preparation ensures reliable transaction completion without requiring delays, as the system is already positioned to use available processors.
Solution Approach 2:
The system continuously monitors payment processor accessibility and uses this feedback to dynamically route transactions to available processors. This real-time feedback mechanism ensures both reliability and speed, as transactions are immediately directed to working processors without delays.
3Productivity
If optimistic fulfillment is used for digital items, then customer satisfaction improves through faster delivery, but financial risk increases if payment approval is not received
Solution Approach 1:
The system performs preliminary payment processing actions in parallel with fulfillment initiation. By starting payment processing early and using multiple processors simultaneously, the system secures payment guarantees before fulfillment completes, eliminating financial risk while maintaining fast delivery through optimistic fulfillment.
Data Source
AI summary
A payment routing and processing platform is configured to collect various attributes for use in identifying an optimal payment processor for a particular payment transaction message. For example, the payment routing and processing platform might identify business attributes, endpoint attributes, customer and transaction attributes, payment method attributes, system attributes, and/or other types of attributes. The payment routing and processing platform might then utilize some or all of the identified attributes to select an endpoint for processing a payment transaction message. The payment routing and processing platform might also utilize some or all of the identified attributes to identify and perform other types of processing of financial transactions. Machine learning techniques might also be utilized to improve the performance of the payment routing and processing platform.