Payment Terminal Adjusting Authorization Amounts via Cryptogram
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current payment terminal systems require recalculating authorization amounts for discounts or loyalty points, lengthening the financial transaction process, as they need to input and verify coupon or loyalty details, which complicates the transaction process.
Innovation Solution
A payment terminal system that dynamically adjusts the authorization amount based on the account number from a payment card, generating an adjusted authorization amount and transmitting a cryptogram request to the card for offline or online authorization, allowing for real-time adjustments without re-configuring the card or issuer server.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If the payment terminal recalculates the authorization amount for discounts or loyalty points by inputting and verifying coupon or loyalty details, then the merchant can offer preferred customers adjustments to the authorization amount, but the transaction process becomes lengthened and more complex
Solution Approach 1:
The payment terminal performs preliminary actions by pre-configuring discount rates and loyalty point values in its database before the transaction occurs. When a payment card is inserted, the terminal automatically queries the database using the account number to retrieve pre-stored discount information, eliminating the need for manual input of coupon or loyalty details during the transaction process.
Solution Approach 2:
The system enables self-service by allowing the payment terminal to automatically retrieve and apply discount information directly from the payment card's account number without requiring merchant intervention. The terminal independently queries its database, calculates the adjusted authorization amount, and processes the transaction without manual verification of coupon or loyalty details.
2Adaptability or versatility
If the payment terminal recalculates the authorization amount for discounts or loyalty points, then the merchant can offer preferred customers adjustments to the authorization amount, but the transaction process becomes more complex
Solution Approach 1:
The payment terminal performs preliminary actions by pre-configuring discount rates and loyalty point values in its database before the transaction occurs. When a payment card is inserted, the terminal automatically queries the database using the account number to retrieve pre-stored discount information, eliminating the need for manual input of coupon or loyalty details during the transaction process.
Solution Approach 2:
The payment terminal acts as an intermediary between the merchant's discount/loyalty program and the payment processing system. It automatically queries its database using the account number from the payment card, retrieves pre-configured discount information, calculates the adjusted authorization amount, and processes the transaction without requiring manual intervention or complex verification procedures.
3Adaptability or versatility
If the merchant offers its own branded payment card with loyalty points that can be redeemed against the purchase price, then the consumer can collect loyalty points, but the payment terminal must query a remote database and recalculate the authorization amount, thereby lengthening the payment process
Solution Approach 1:
The payment terminal performs preliminary actions by pre-configuring loyalty point values and redemption rates in its database before the transaction occurs. When a loyalty payment card is inserted, the terminal automatically queries the database using the account number to retrieve pre-stored loyalty information, eliminating the need for manual input or real-time calculation of loyalty point values during the transaction process.
Solution Approach 2:
The system enables self-service by allowing the payment terminal to automatically retrieve and apply loyalty point information directly from the payment card's account number without requiring manual input or real-time calculation. The terminal independently queries its database, retrieves pre-configured loyalty data, and processes the transaction with automatic authorization amount adjustment.
Data Source
AI summary
A payment terminal includes a card interface and a transaction processor. The terminal receives a preliminary authorization amount, and receives application data from a payment card that is interfaced with the card interface. The application data includes an account number that is uniquely associated with the payment card. The processor generates an adjusted authorization amount from the account number and the preliminary authorization amount, determines whether the adjusted authorization amount can be authorized offline, and transmits a cryptogram request to the payment card. The adjusted authorization amount is different from the preliminary authorization amount. The cryptogram request includes the adjusted authorization amount. The processor receives a cryptogram from the payment card, receives an authorization response message confirming authorization of the adjusted authorization amount, and confirms that the cryptogram was generated from the adjusted authorization amount and from a cryptographic key that is uniquely associated with the payment card.