Push Transaction System Using Fuzzy Logic Payee Identification
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Solution Overview
Problem
Current payment methods lack efficient risk assessment, rewards programs, and timely transaction control, with limitations in fraud detection and payment scheduling, especially in push transactions where the payee is not directly involved.
Innovation Solution
A computer-implemented method and system for conducting push transactions that allow a payor to initiate payments with minimal interaction from the payee, using a payment instruction message that includes partial payee information, which is processed to determine substantially complete payee information through fuzzy logic matching, and authorization requests are sent to the issuer for approval, enabling funds transfer.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If push transactions are implemented with minimal payee interaction, then transaction speed and efficiency are improved, but risk assessment and fraud detection capabilities deteriorate
Solution Approach 1:
The system performs preliminary risk assessment and fraud detection by analyzing push identifiers and payment instruction messages before authorizing the transaction. The issuer evaluates the push transaction request in advance, assessing risk factors and verifying authenticity before funds are transferred, enabling fast push transactions while maintaining security through pre-authorization checks
Solution Approach 2:
The system introduces an intermediary authorization mechanism where the issuer acts as a mediator between the payor and payee. The push identifier serves as an intermediary reference that carries transaction information through the system, allowing the issuer to verify and control the transaction without requiring direct payee involvement, thus maintaining both speed and security
2Ease of operation
If push transactions are implemented with minimal payee interaction, then transaction control by payor is improved, but transaction security and authorization verification deteriorate
Solution Approach 1:
The system implements feedback mechanisms where the issuer receives push identifier information, evaluates it against authorization criteria, and provides authorization decisions back to the transaction system. This feedback loop ensures that payor control is maintained through convenient push transactions while authorization verification is preserved through systematic issuer evaluation and approval processes
Solution Approach 2:
The issuer performs preliminary evaluation and authorization verification of push transaction requests before the actual funds transfer occurs. By pre-authorizing transactions based on push identifier validation and risk assessment, the system enables payors to initiate transactions easily while ensuring security through advance verification
3Ease of operation
If partial payee information is used in payment instructions, then ease of payment initiation is improved, but payment accuracy and payee identification deteriorate
Solution Approach 1:
The push identifier serves as an intermediary reference that bridges the gap between partial payee information and complete payee identification. The identifier carries sufficient information for the issuer to locate and verify the correct payee through database lookups, allowing payors to initiate payments easily with minimal information while ensuring accurate payee identification through the intermediary identifier system
Data Source
AI summary
A system and method for processing push transactions. A payor may initiate a transaction without input from the payee. A system can determine who the payee is from partial information provided by the payor, and direct the transaction to the proper party.