Point-of-Sale Counter-Offer for Payment Conversion
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Solution Overview
Problem
Current point-of-sale transaction systems lack the ability to seamlessly convert non-credit card account transactions into credit card account transactions, missing opportunities for incentives and efficient payment processing.
Innovation Solution
A method and system that allow a computer to receive a point-of-sale transaction indication, determine if a counter-offer is appropriate, and send a request to the point-of-sale program to complete the transaction as a credit card account transaction, using a counter-offer function that includes incentives to entice cardholders to use their credit card account for payment.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If a point-of-sale transaction is processed as a non-credit card account transaction, then the transaction can be completed quickly, but the merchant loses potential revenue from credit card account transactions and incentives
Solution Approach 1:
The system performs preliminary actions by sending a counter-offer to convert a non-credit card account transaction into a credit card account transaction before the transaction is finalized. The counter-offer function proactively reaches out to the cardholder with incentives, allowing the transaction to be converted before completion, thus capturing potential revenue without significantly delaying the transaction process
Solution Approach 2:
The system dynamically adapts the payment method by allowing the transaction type to change from non-credit card to credit card account transaction through the counter-offer mechanism. The payment method is not fixed but can be modified based on the cardholder's response to the counter-offer, enabling flexibility in capturing revenue opportunities
2Loss of energy
If the system sends a counter-offer to convert non-credit card transactions to credit card account transactions, then merchant revenue and transaction completion rates improve, but the system complexity increases
Solution Approach 1:
The counter-offer function is integrated into the existing point-of-sale system, allowing it to handle multiple functions: processing original transactions, evaluating conversion opportunities, sending counter-offers, and managing responses. This multi-functionality reduces the need for separate dedicated systems, thereby limiting the increase in system complexity while capturing revenue opportunities
Solution Approach 2:
The counter-offer function acts as an intermediary between the point-of-sale system and the cardholder, facilitating the conversion process without requiring direct complex interactions. It mediates the transaction conversion by presenting incentives and managing the response workflow, simplifying the overall system architecture while enabling revenue capture
3Productivity
If the system evaluates and sends counter-offers for transaction conversion, then credit card account transaction completion rates improve, but the processing time increases
Solution Approach 1:
The system implements a streamlined counter-offer process that can be quickly evaluated and sent without lengthy processing steps. The counter-offer function rapidly assesses conversion opportunities and presents incentives to cardholders, allowing the conversion process to proceed quickly and minimize delays to transaction completion
Solution Approach 2:
The system applies partial action by selectively sending counter-offers only for transactions that meet specific conversion criteria, rather than attempting to convert all non-credit card transactions. This targeted approach improves completion rates for eligible transactions while minimizing the time impact on overall processing volume
Data Source
AI summary
In a method for sending a counter-offer in response to receiving an indication about a point-of-sale transaction, a computer receives from a point-of-sale program a point-of-sale transaction and an indication that the point-of-sale transaction is to be paid for utilizing a first payment option and is to be recorded using a second payment option. The computer determines that a counter-offer is appropriate. The counter-offer includes a request that the point-of-sale transaction be paid for utilizing the second payment option. The computer sends to the point-of-sale program the counter-offer.