Real-time Award Determination Engine for Payment Transactions
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Solution Overview
Problem
Credit card reward programs typically provide rewards to cardholders months after a purchase, lacking real-time reward availability and decision-making capabilities within credit card processing systems.
Innovation Solution
Implementing an awards determination engine within the acquirer, issuer, or transaction processing network to dynamically assess transaction data against predefined criteria, allowing for real-time awarding of loyalty rewards during or after transactions, including encoding promotion data in payment authorization messages.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of time
If rewards are provided months after purchase using conventional processing systems, then reward calculation can be based on complete transaction data, but cardholders experience delayed reward availability and reduced engagement
Solution Approach 1:
The system performs preliminary actions by embedding promotion data in authorization request messages before the transaction is completed. This allows the award determination engine to identify eligible transactions and trigger rewards in real-time or near-real-time, rather than waiting for monthly statement processing. The promotion data is prepared and attached to authorization requests in advance, enabling immediate reward evaluation when the authorization response is received.
Solution Approach 2:
The patent introduces an intermediary mechanism by embedding promotion data within existing payment authorization request and response messages. This intermediary data structure acts as a carrier that transports promotion identification information through the payment processing network without disrupting the existing authorization flow. The promotion data serves as a mediator that connects the authorization process with the reward determination logic, enabling real-time reward processing through standard message exchanges.
2Adaptability or versatility
If award criteria are fixed and simple, then processing is faster and easier, but the system lacks adaptability to implement varied promotions and business logic
Solution Approach 1:
The award determination engine implements dynamic adaptability by evaluating multiple configurable award criteria that can be adjusted without changing the underlying system architecture. The engine can apply different business rules, merchant categories, purchase amount thresholds, and cardholder eligibility criteria based on the specific promotion being implemented. This dynamic rule-set allows the system to adapt to various promotion types while maintaining a consistent processing framework.
Solution Approach 2:
The patent segments the award determination process into distinct evaluable criteria that can be independently configured and applied. Each promotion can be defined by separate criteria such as merchant identification, purchase amount ranges, cardholder status, and time periods. This segmentation allows complex promotion logic to be broken down into manageable evaluation steps, making the system both versatile and maintainable.
3Productivity
If promotion data is embedded in authorization messages, then real-time reward determination is enabled, but message processing complexity increases
Solution Approach 1:
The patent merges promotion data embedding with the existing payment authorization message flow. Rather than creating a separate reward processing system, the promotion identification data is combined with the authorization request and response messages that already traverse the payment network. This merging allows the award determination engine to access promotion information through existing message channels, achieving real-time processing without adding separate communication infrastructure.
Solution Approach 2:
The authorization message structure is enhanced to serve multiple functions: it carries both the traditional payment authorization information and the promotion identification data needed for reward determination. This multi-functional message structure allows a single message exchange to accomplish both payment processing and reward eligibility evaluation, reducing the need for separate processing channels while maintaining real-time capability.
Data Source
AI summary
The present invention provides systems and methods for facilitating transactions with real-time awards determinations for a cardholder. Each transaction includes transaction information, where the transaction information includes: cardholder information, merchant information, and a transaction amount. An engine determines if an award should be granted based on award criteria, such that the engine compares the transaction information with each award criterion in order to determine if the award should be granted in real-time with the transaction by the cardholder.