Pre-chargeback Records for Payment Dispute Resolution

Solution Overview

Problem

Conventional chargeback procedures in payment systems are complex and costly due to a lack of contemporaneous documentation, particularly for transactions like telephone purchases, which often lack supporting information, leading to inefficient dispute resolution and resource consumption in the payment processing network.

Innovation Solution

An insight data computing system generates pre-chargeback records by linking supplemental customer information collected by merchants during transactions to transaction data stored in historical databases, enabling issuers to review supporting documentation before initiating the conventional chargeback process, thereby reducing the need for resource-intensive chargeback procedures.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If conventional chargeback procedures are used for dispute resolution, then transaction disputes can be formally adjudicated, but the process consumes significant messaging bandwidth and computing resources of the payment processing network

Engineering Contradiction:

Improvedispute resolution capabilityVSAvoidcomputing resources consumption

Core Design Contradiction:

ReliabilityVSUse of energy by moving object

Solution Approach 1:

The system performs preliminary documentation collection during the original transaction by capturing insight data (telephone numbers, email addresses, transaction details) at the point of sale. This pre-captured documentation is stored and made available for future dispute resolution, eliminating the need for resource-intensive chargeback procedures when disputes arise.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent introduces an intermediary documentation system that sits between the transaction processing and dispute resolution. This system captures and stores transaction details, customer information, and supporting documentation during the original transaction, then provides this documentation to resolve disputes without requiring full chargeback processing through the payment network.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Reliability

If conventional chargeback procedures are used for dispute resolution, then formal arbitration can be conducted, but the process is costly to all participants involved

Engineering Contradiction:

Improvedispute resolution capabilityVSAvoidcost to participants

Core Design Contradiction:

ReliabilityVSLoss of energy

Solution Approach 1:

The system performs preliminary documentation collection during the original transaction by capturing insight data (telephone numbers, email addresses, transaction details) at the point of sale. This pre-captured documentation is stored and made available for future dispute resolution, eliminating the need for resource-intensive chargeback procedures when disputes arise.

Inventive Principle:

Principle #10Preliminary action

3Productivity

If telephone purchases are processed without capturing customer information, then the transaction can be completed quickly, but the merchant has little supporting documentation when a chargeback is disputed

Engineering Contradiction:

Improvetransaction processing speedVSAvoidsupporting documentation

Core Design Contradiction:

ProductivityVSLoss of information

Solution Approach 1:

The system performs preliminary documentation collection during the original transaction by capturing insight data (telephone numbers, email addresses, transaction details) at the point of sale. This pre-captured documentation is stored and made available for future dispute resolution, eliminating the need for resource-intensive chargeback procedures when disputes arise.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The merchant's system automatically captures customer information (telephone number, email address, transaction details) during the sale without requiring manual documentation. The system self-services the documentation collection process, storing this information for future dispute resolution without adding burden to the transaction process.

Inventive Principle:

Principle #25Self-service

Data Source

PatentUS11741465B2Systems and methods for generating pre-chargeback dispute records

Publication Date: 2023.08.29 MASTERCARD INT INC

AI summary

An insight data computing system for generating a pre-chargeback record for a payment transaction between a customer and a merchant is provided. The payment transaction is authorized over a payment processing network based on transaction data submitted over the payment processing network. The transaction data is stored by the payment processing network in a historical transaction database. The insight data computing system includes an insight data interface computing device programmed to (i) receive, via an insight communication channel other than the payment processing network, an insight data message including insight data and transaction link data, (ii) store the insight data in an insight database, (iii) link the insight data to the transaction data by matching the transaction link data in the insight data to the transaction data in the historical transaction database, and (iv) generate the pre-chargeback record including the transaction data and the linked insight data.