Proxy Card Payment System Real-Time Override
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Solution Overview
Problem
Conventional merchant-consumer financial transactions lack flexibility and user control, as they do not allow for real-time override of declined transactions or selection of alternative financial accounts, and do not incorporate user identification information in the approval message, limiting the ability to manage multiple financial accounts and offers.
Innovation Solution
A proxy card payment system that enables real-time requests to override declined transactions, select different financial accounts, and insert user identification information into transaction approval messages, allowing users to set rules for account access and manage multiple financial accounts, including debit, credit, stored value, loyalty, and coupon accounts.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If a conventional payment system is used, then the transaction process is simple, but the user cannot override declined transactions or select alternative accounts in real-time
Solution Approach 1:
The patent introduces a payment system intermediary (processor) that sits between the merchant and multiple card networks. This intermediary receives payment requests, determines the optimal card network to use based on user rules and real-time conditions, and routes transactions accordingly. This mediator enables flexible transaction routing and real-time override capabilities without requiring complex changes at the merchant or card network levels.
Solution Approach 2:
The payment system is segmented into distinct functional components: the merchant terminal, the payment processor (intermediary), multiple card networks, and user account management systems. This segmentation allows the intermediary to independently manage transaction routing logic and user preferences without affecting the operational integrity of other system components, thereby enabling adaptability without proportional complexity increase.
2Adaptability or versatility
If user identification information is added to approval messages, then personalized offers can be provided, but the transaction processing time increases
Solution Approach 1:
User identification information and personalization data are retrieved and prepared in advance during the authorization process. The payment system proactively fetches user profiles, preferences, and eligibility criteria before the final approval message is generated, allowing personalized offers to be attached without delaying the core transaction settlement.
Solution Approach 2:
The system maintains continuous user session information and authentication states throughout the transaction process. Once a user is authenticated, their identification information remains valid for multiple transactions within a session, eliminating the need to repeatedly verify and retrieve user data, thus reducing processing time while maintaining personalization capabilities.
3Adaptability or versatility
If multiple financial accounts are managed through a single proxy card, then account selection flexibility improves, but the system complexity increases
Solution Approach 1:
The proxy card is designed as a universal access mechanism that can represent multiple different financial accounts (credit cards, debit cards, gift cards, loyalty programs) through a single interface. The card contains or is linked to account management data that enables it to function as multiple specialized cards, providing account selection flexibility without requiring the user to carry or manage multiple physical cards.
Solution Approach 2:
The account management system uses a nested structure where the proxy card contains a hierarchy of accounts and sub-accounts. Each proxy card can hold multiple financial accounts, and each financial account can have associated sub-accounts or linked programs (such as loyalty accounts). This nested organization allows complex account relationships to be managed through a single card interface, reducing the apparent complexity for users while maintaining sophisticated account management capabilities.
Data Source
AI summary
Novel features to be used in a proxy card payment system include a real-time request to override a declined transaction or to select a different financial account and the insertion of user identification information into the transaction approval message sent to the merchant. A payment request is forwarded to the payment system, which maintains the proxy card account and determines whether the transaction violates a user-defined rule. If the transaction is declined by the issuer that maintains the financial account, or the payment system for violation of a user-defined rule, the payment system sends a real-time message to the user. The user is prompted to override the rule causing the transaction to be declined or to select a new account to process the transaction. Once the payment system receives authorization for the transaction, it inserts the user identification information in an approval message before transmitting the approval to the merchant.