Pre-authorization Payment Instrument Transaction Processing
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Solution Overview
Problem
Existing transaction processing systems require customers to repeatedly provide payment information for multiple items or services during a single transaction, which can be inconvenient and increase the risk of sensitive information exposure.
Innovation Solution
Implementing pre-authorization techniques where a payment instrument is pre-authorized for a first amount of funds based on initial transaction information, allowing customers to add additional items without re-entering payment information, and settling the transaction only when complete.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If customers provide payment information for each item separately, then transaction authorization is ensured for each item, but the transaction process becomes complex and requires repeated information entry
Solution Approach 1:
The system performs preliminary authorization by pre-approving a maximum transaction amount before the customer completes their shopping. This preliminary action establishes payment authorization in advance, eliminating the need for repeated authorization checks for each individual item while maintaining security and reliability.
Solution Approach 2:
The patent combines multiple individual authorization requests into a single consolidated authorization for the maximum transaction amount. By merging separate authorization operations into one unified pre-authorization, the system simplifies the transaction process while ensuring payment security for all items in the cart.
2Reliability
If payment information is entered multiple times, then each transaction is securely authorized, but sensitive information exposure risk increases
Solution Approach 1:
Payment information is collected and authorized in advance through pre-authorization, establishing a secure framework before the actual transaction occurs. This preliminary capture of payment information eliminates the need for repeated transmission of sensitive data during the shopping process, reducing exposure risk while maintaining authorization reliability.
Solution Approach 2:
The system creates a copy of the payment information for authorization purposes and stores it securely for the duration of the transaction. This copying approach allows the system to reference the same payment data multiple times without requiring the customer to re-enter information, thereby reducing sensitive information transmission while maintaining security.
3Reliability
If authorization is processed for each item individually, then payment security is maintained, but processing time increases
Solution Approach 1:
The system performs payment authorization in advance by establishing a pre-authorization for the maximum transaction amount before the customer finishes selecting items. This preliminary authorization eliminates the need for time-consuming individual authorization processing for each item, significantly reducing overall processing time while maintaining payment security through the pre-established authorization framework.
Solution Approach 2:
Multiple individual authorization processing operations are merged into a single consolidated pre-authorization process. By combining separate authorization requests into one unified operation that covers the maximum potential transaction amount, the system reduces processing time while maintaining the same level of payment security that would be achieved through individual authorizations.
Data Source
AI summary
The disclosure describes, in part, techniques for performing pre-authorization during a transaction between a merchant a customer. For instance, a payment service may receive, from a merchant device, payment information of a payment instrument that is used to satisfy a cost of a first item. The payment service may then send an authorization request to a card payment network to hold a first amount of funds based on previous purchase activity. The payment service may further send the merchant device information associated with the customer. Next, the payment service may receive an indication that the customer requests to purchase a second item. In response, the payment service may send a request to the card payment network to capture a second amount of funds that is based on the cost of the first item and a cost of the second item. In response, the payment service may receive approval from the card payment network.