QR Code Debit Network Routing for Cost Reduction
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Solution Overview
Problem
Current mobile payment systems lack an efficient method to dynamically select the most cost-effective debit network for transactions, often resulting in higher transaction fees for both users and retailers due to the lack of user and retailer preference integration in debit network selection.
Innovation Solution
A mobile computer system generates a QR code embedding debit network selection and user account information, allowing users and retailers to specify preferred debit networks, which is then processed by a payment processing system to determine the optimal network for the transaction.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of energy
If a mobile payment system uses traditional debit network selection methods, then the system is simple to operate, but transaction fees are higher due to lack of dynamic optimization
Solution Approach 1:
The system pre-generates QR codes containing embedded debit network selection information before the actual payment transaction occurs. This preliminary encoding of payment routing data allows the payment to be processed through the optimal debit network without real-time decision complexity, reducing transaction fees while maintaining system simplicity.
Solution Approach 2:
The patent introduces an intermediary layer (the QR code with embedded network selection data) between the user and the debit network selection process. This intermediary contains pre-determined routing information that guides the payment through the most cost-effective network without requiring the user or system to complexly evaluate multiple networks at transaction time.
2Productivity
If debit network selection is automated without user preference, then processing speed increases, but user satisfaction decreases due to lack of preference integration
Solution Approach 1:
User preferences for debit network selection are captured and encoded into QR codes in advance, before the actual payment transaction. This preliminary action stores the user's preferred routing information in the QR code, allowing automated processing to proceed quickly while still respecting user preferences embedded in the pre-generated code.
3Adaptability or versatility
If multiple debit networks are supported with dynamic selection, then cost-effectiveness increases, but system complexity increases
Solution Approach 1:
The patent segments the debit network selection decision into the QR code generation phase, where multiple network options and selection criteria are processed, and the execution phase, where the pre-determined selection is simply followed. This segmentation moves the complexity to code generation while keeping the actual payment processing simple and fast.
Data Source
AI summary
Embodiments are directed to selecting a debit network using a quick response (QR) code and to processing a payment using a debit network selected according to information embedded in a QR code. In one scenario, a mobile computer system receives input indicating that a user has initiated a payment for various items sold by a provider of goods or services. The mobile computer system determines that the user or the provider has specified a preference indicating which debit network is to be used to process the payment. The mobile computer system then generates a QR code with the debit network selection and portions of the user's debit account information embedded in the QR code, and sends the generated QR code to a payment processing system. The payment processing system may be cloud-based, or may be run locally at the provider's point of sale.