Protocol-Aware Message Routing for Pre-Chargeback Dispute Resolution
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Solution Overview
Problem
The existing chargeback process for transaction disputes in payment networks is complicated, time-consuming, and costly, consuming network resources and bandwidth, with no direct communication system allowing cardholders to resolve disputes with merchants outside of the payment processor.
Innovation Solution
A network-based system that enables direct communication between cardholders and merchants through a pre-chargeback network, using an analyzer computing device to route disputes via different communication protocols, allowing for resolution before submitting to the payment network.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If the existing chargeback process is used for transaction disputes, then cardholders can resolve disputes through the payment network, but the process becomes complicated, time-consuming, and costly while consuming network resources and bandwidth
Solution Approach 1:
The system segments the dispute resolution process into two distinct pathways: a pre-chargeback communication channel for direct cardholder-merchant interaction, and the traditional chargeback pathway for formal disputes. This segmentation allows simple disputes to be resolved quickly through direct communication while reserving the formal chargeback process for more complex cases, thereby reducing overall resolution time and network resource consumption.
Solution Approach 2:
The system introduces an intermediary communication platform that facilitates direct dialogue between cardholders and merchants before a chargeback is initiated. This intermediary channel enables parties to exchange information, negotiate resolutions, and potentially settle disputes without involving the payment network's formal chargeback infrastructure, thus reducing time loss and network resource usage.
2Reliability
If chargeback requests are submitted through the payment processor, then transaction disputes can be formally processed, but network resources and bandwidth are consumed
Solution Approach 1:
The system performs preliminary actions by enabling cardholders and merchants to communicate and potentially resolve disputes through the pre-chargeback channel before formally submitting chargeback requests to the payment processor. This preliminary communication phase allows many disputes to be settled without consuming payment network resources, while preserving the option to escalate to formal chargeback processing when necessary.
3Productivity
If a direct communication system between cardholders and merchants is implemented, then dispute resolution speed increases, but the system complexity increases with multiple communication protocols
Solution Approach 1:
The system uses an intermediary messaging platform that handles the complexity of multiple communication protocols internally, presenting a simplified interface to cardholders and merchants. This intermediary layer manages protocol translation and routing, enabling fast direct communication between parties while shielding them from the underlying system complexity.
Solution Approach 2:
The communication system is designed with universal functionality to handle multiple communication protocols and message formats through a unified platform. This multi-functional design allows the system to accommodate various communication standards while maintaining a consistent user experience and internal processing logic, thereby increasing resolution speed without proportionally increasing perceived complexity.
4Reliability
If all disputes are routed through the payment network, then centralized processing is maintained, but processing time and network bandwidth usage increase
Solution Approach 1:
The system segments dispute traffic into two categories: disputes that can be resolved through direct communication (handled outside the payment network) and those requiring formal chargeback processing (handled through the payment network). This segmentation reduces the volume of transactions processed through the payment network, thereby increasing overall processing throughput while maintaining centralized control for cases that require it.
Solution Approach 2:
The system implements feedback mechanisms where the outcomes of pre-chargeback communications inform whether a dispute should proceed to formal chargeback processing. This feedback loop allows the system to maintain centralized processing control for appropriate cases while efficiently routing resolvable disputes through alternative channels, thus improving overall processing throughput.
Data Source
AI summary
A computer system including a first network-based portal, a second network-based portal, and an analyzer computing device including at least one processor is provided. The at least one processor is configured to: (i) receive an initial data message including data elements, (ii) analyze, using machine learning tools, the data elements to determine to route the initial data message to the second network-based portal or to a processing computing device, (iii) in response to determining to route the initial data message to the second network-based portal, route the initial data message to the second network-based portal via a first network communication link, and (iv) in response to determining to route the initial data message to the processing computing device via a second network communication link, reformat the initial data message into a different protocol compatible with the second network communication link, and transmit the reformatted message to the processing computing device.