Payment Validation Server for Multi-Entity Transactions

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Solution Overview

Problem

Conventional payment processing systems lack validation mechanisms for transactions involving multiple entities, leading to inefficiencies, delays, and increased costs, especially when the entity paying for a product or service is not the one receiving it, and they struggle with the additional traffic generated by validation processes.

Innovation Solution

A system that enables direct interaction between end-user devices and payment processing systems, incorporating a network-enabled server computer that communicates with external systems to request and validate transaction information, using WSDL, RESTful, and JSON messaging techniques to streamline and secure payment transactions.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If conventional payment processing systems are used, then transaction processing is simple and fast, but validation of transactions involving multiple entities cannot be performed

Engineering Contradiction:

Improvetransaction validationVSAvoidsystem complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent introduces a validation server as an intermediary component between the payment processing system and external systems. This validation server receives transaction information, requests additional validation data from external systems, and coordinates the validation process without requiring fundamental changes to the existing payment processing infrastructure, thus adding validation capability while limiting complexity increase.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The system segments the payment processing function into distinct components: the original payment processing system, a new validation server, and external validation systems. This segmentation allows each component to specialize in specific tasks (payment processing vs. validation), improving overall reliability while distributing system complexity across multiple independent modules.

Inventive Principle:

Principle #1Segmentation

2Reliability

If validation processes are added to payment transactions, then transaction security and authenticity are improved, but processing time and system traffic increase

Engineering Contradiction:

Improvetransaction securityVSAvoidprocessing time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The validation server requests additional transaction information from external systems in advance of the actual payment processing. By performing validation checks beforehand and caching validation results, the system reduces the time added to each transaction while maintaining security, as the heavy validation work is completed before the user experiences the payment process.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The system implements feedback mechanisms where validation results are communicated back to the payment processing system in real-time. This allows transactions to be validated efficiently with minimal delay, as the feedback loop is optimized to provide quick validation decisions rather than lengthy processing sequences.

Inventive Principle:

Principle #23Feedback

3Measurement precision

If additional validation information is requested from merchants and users, then transaction verification accuracy is improved, but system traffic and processing load increase

Engineering Contradiction:

Improveverification accuracyVSAvoiddata traffic

Core Design Contradiction:

Measurement precisionVSQuantity of substance

Solution Approach 1:

The validation server implements local quality by requesting different types and amounts of validation information based on the specific transaction context, risk level, and entity type. Rather than uniformly requesting all possible validation data for every transaction, the system tailors validation requirements to each specific case, improving verification accuracy where needed while reducing unnecessary data traffic for low-risk transactions.

Inventive Principle:

Principle #3Local quality

Data Source

PatentUS8856043B2Method and system for managing data and enabling payment transactions between multiple entities

Publication Date: 2014.10.07 VISA INTERNATIONAL SERVICE ASSOCIATION

AI summary

A system for conducting payment transaction includes a network-enabled server that communicates with one or more user devices, other network-enabled server computers, and a payment processing network server computer. The network-enabled server facilitates transactions between one or more merchants and users by a managing data flow and interactions between the merchants and the users, providing storage area for storing of all transaction related documents, and providing seamless integration with a payment processing network for payment processing.