Payment Routing System with Scaled Score Optimization

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Solution Overview

Problem

Existing payment systems often result in suboptimal payment processing and higher costs due to predetermined merchant settings, leading to failed transactions and inefficient routing methods.

Innovation Solution

A system that uses processors and transceivers to receive payment transaction messages, generate scaled scores based on historical data, and apply contribution rules to optimize payment routing according to the likelihood of settlement, allowing for real-time adjustments and feedback-driven algorithm retraining.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If predetermined merchant settings are used for payment routing, then the system is simple to operate, but payment processing efficiency deteriorates and transaction failures increase

Engineering Contradiction:

Improvemerchant settingsVSAvoidpayment processing efficiency

Core Design Contradiction:

Ease of operationVSProductivity

Solution Approach 1:

The system enables self-service by allowing the payment system itself to automatically determine optimal routing decisions based on real-time account data and scaled scores, eliminating the need for complex merchant configuration while maximizing processing efficiency

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The system dynamically changes routing parameters by calculating scaled scores based on multiple factors including account balance, transaction amount, and settlement date, allowing optimal routing decisions to be made automatically without fixed merchant settings

Inventive Principle:

Principle #35Parameter changes

2Device complexity

If predetermined merchant settings are used for payment routing, then configuration is simple, but transaction costs increase

Engineering Contradiction:

Improverouting configurationVSAvoidtransaction costs

Core Design Contradiction:

Device complexityVSLoss of energy

Solution Approach 1:

The payment system performs self-optimization by automatically selecting cost-effective routing options based on real-time calculations of scaled scores and contribution rules, eliminating the need for merchants to manually configure complex routing settings while minimizing transaction costs

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The system uses feedback from transaction outcomes and account data to continuously refine routing decisions, applying contribution rules that weigh multiple factors to identify the most cost-effective settlement options without requiring complex merchant configuration

Inventive Principle:

Principle #23Feedback

3Productivity

If real-time scaled score calculations are performed, then payment routing optimization improves, but system complexity increases

Engineering Contradiction:

Improvepayment processing efficiencyVSAvoidsystem architecture

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The system segments the routing decision process into distinct components: data collection, scaled score calculation with weighted factors, contribution rules application, and routing selection. This modular approach manages complexity while enabling real-time optimization

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The payment system acts as an intermediary between the merchant and financial institutions, introducing a centralized routing optimization layer that calculates scaled scores and determines optimal settlement paths, managing the complexity of real-time decisions through a dedicated mediation layer

Inventive Principle:

Principle #24Intermediary (Mediator)

4Measurement precision

If multiple account options are evaluated, then routing accuracy improves, but processing time increases

Engineering Contradiction:

Improverouting accuracyVSAvoidprocessing time

Core Design Contradiction:

Measurement precisionVSLoss of time

Solution Approach 1:

The system performs preliminary actions by pre-calculating scaled scores for multiple potential settlement dates and accounts before the actual transaction settlement, allowing rapid selection of the optimal routing option when the transaction needs to be executed

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The system dynamically evaluates multiple account options by adjusting the weighting of different factors in the scaled score calculation based on real-time conditions, allowing the most relevant accounts and settlement dates to be prioritized in the evaluation process

Inventive Principle:

Principle #15Dynamics

Data Source

PatentUS20240013215A1Computer-implemented systems and methods for payment routing

Publication Date: 2024.01.11 MASTERCARD INT INC

AI summary

A system for payment routing programmed to: receive a payment transaction message relating to a putative payment transaction of an accountholder, the payment transaction message containing putative payment transaction data including a transaction amount corresponding to the putative payment transaction; identify a plurality of accounts corresponding to the accountholder based on the payment transaction message, the accounts being held with a plurality of financial institutions; and responsive to receipt of the putative transaction data, generate a scaled score representing the likelihood of settlement of the putative payment transaction on a date for each of accounts held with the financial institutions.