Recurring Payment Processing with Consumer-Controlled Account Updates
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Solution Overview
Problem
Conventional recurring payment processing systems are inconvenient for consumers, as they require manual updates with merchants when a payment card expires or is replaced, leading to potential dissatisfaction with service providers and increased risk of new account information compromise.
Innovation Solution
A system where a payment processing network receives consumer registration information, sends alerts for account updates, and allows consumers to select which merchants to continue recurring payments with new account information, eliminating the need for merchants to store new account details and enhancing consumer control.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If new account information is automatically provided to all merchants, then recurring payments can continue seamlessly, but the risk of account information compromise increases and consumers lose control over payment continuance
Solution Approach 1:
The patent introduces an intermediary system between the card issuer and merchants that controls the flow of account information. This intermediary requires consumer authorization before providing new account information to any merchant, thus reducing the risk of unauthorized information compromise while maintaining seamless payment processing for authorized transactions.
Solution Approach 2:
The system implements feedback mechanisms where consumers receive notifications about upcoming account information updates and can authorize or deny each update. This feedback loop gives consumers control over when and where their new account information is provided, balancing convenience with security and consumer autonomy.
2Adaptability or versatility
If consumers must manually contact each merchant to update card information, then control over payment continuance is maintained, but the complexity and time required for updates increases significantly
Solution Approach 1:
The patent enables consumers to self-manage their recurring payment information through a centralized system. Instead of manually contacting each merchant, consumers can authorize account information updates through a single interface that automatically distributes the information to all authorized merchants, dramatically reducing the complexity of the update process while maintaining consumer control.
Solution Approach 2:
The system provides a universal platform that handles multiple merchants and various types of recurring payments through a single authorization mechanism. This multi-functional approach allows consumers to manage all their recurring payment updates in one place rather than dealing with each merchant separately.
3Speed
If merchants maintain and update account information themselves, then they can respond quickly to changes, but the overhead and resources required for merchants increases
Solution Approach 1:
The patent extracts the account information management function from individual merchants and consolidates it at the payment processing network level. Merchants no longer need to maintain or update account information themselves; instead, they receive pre-authorized account information from the centralized system, eliminating the overhead while maintaining quick response times through automated distribution.
Data Source
AI summary
Techniques for processing of recurring payments are provided that allow a consumer to decide whether to update consumer account information at a merchant when a consumer is issued new account information for a payment card or the like. For example, a consumer may register with a payment processing network associated with the consumer's payment card. During registration, the consumer may indicate the payment card number and expiration date, the name of merchants that the consumer pays on a recurring basis using the payment card and the corresponding merchant website addresses, in what form the consumer would like to receive alerts (e.g. text message, email), and when to receive alerts (e.g. a particular number of days prior to the expiration date). The payment processing network sends the consumer an alert message based on the preferences indicated during registration, including the names and website links for each merchant indicated during registration. The consumer can use the alert message to access the merchant websites and update the account information for a new payment card.