Post-Authorization Payment Erasure Using Loyalty Points

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Solution Overview

Problem

Existing systems for using reward points to erase payment transactions are inefficient, as consumers often forget to utilize points after transactions have been authorized and cleared, leading to missed savings opportunities and longer fund tie-ups.

Innovation Solution

A system that allows post-authorization erasure of payment transactions using reward points by storing account profiles and authorization records, generating unique identifiers, and transmitting request messages to consumers for rebate confirmation, enabling direct deduction of reward points and initiation of rebates before clearing and settlement.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If consumers use reward points to erase transactions after clearing and settlement, then they can utilize their points, but their funds remain tied up for extended periods and consumers often forget to seek out transactions

Engineering Contradiction:

Improveease of using reward pointsVSAvoidtime funds are tied up

Core Design Contradiction:

Ease of operationVSLoss of time

Solution Approach 1:

The system performs preliminary actions by automatically identifying eligible transactions and presenting erasure opportunities to consumers before clearing and settlement occur. The processor proactively generates notifications with unique identifiers for transactions that qualify for erasure, allowing consumers to act while the window is still open, rather than requiring them to search for and recall past transactions after clearing.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The system implements feedback by notifying consumers of eligible erasure opportunities through communications that include unique identifiers and transaction details. This feedback loop informs consumers of available savings opportunities in real-time, enabling them to make informed decisions about using reward points before transactions are cleared and settled.

Inventive Principle:

Principle #23Feedback

2Reliability

If consumers manually search for transactions to erase after clearing, then they can use reward points, but they often forget and miss savings opportunities

Engineering Contradiction:

Improvereliability of reward point utilizationVSAvoideffort required to use reward points

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The system performs self-service by automatically identifying transactions eligible for erasure and generating notifications to consumers without requiring them to manually search or remember transactions. The processor autonomously matches transactions with reward point balances, determines eligibility based on program rules, and presents erasure opportunities, thereby ensuring reliable utilization of reward points without consumer effort.

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The system takes preliminary action by proactively identifying and notifying consumers of erasure opportunities before transactions are cleared, eliminating the need for consumers to manually search for transactions and ensuring they don't miss savings opportunities.

Inventive Principle:

Principle #10Preliminary action

3Productivity

If the system tracks and manages authorization records with unique identifiers, then erasure can be initiated promptly after authorization, but system complexity increases

Engineering Contradiction:

Improvespeed of transaction erasureVSAvoidsystem complexity for tracking

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The system applies segmentation by dividing the erasure process into distinct components: generating unique identifiers for authorized transactions, storing authorization records with these identifiers, and using these identifiers to track and enable erasure. This segmentation allows the system to manage complexity through modular organization while enabling rapid erasure through efficient record retrieval using the unique identifiers as keys.

Inventive Principle:

Principle #1Segmentation

Data Source

PatentUS11263655B2Method and system for post authorization payment of transactions using loyalty points

Publication Date: 2022.03.01 MASTERCARD INT INC

AI summary

A method for confirming post-authorization erasure of a transaction payment using reward points includes: storing account profiles including data related to reward accounts, each including an account identifier and point amount; receiving a transaction message associated with a payment transaction, the message including a specific account identifier and transaction amount; identifying a specific account profile that includes the specific account identifier; calculating a point cost based on the transaction amount; identifying an authorization reference key associated with the payment transaction and specific account profile; identifying a unique identifier associated with the authorization reference key; storing an authorization record including authorization reference key and unique identifier; generating a request message including the identified unique identifier one of: the point cost and transaction amount; and transmitting the request message to a consumer associated with the specific account profile.