Automated Recurring Payment Error Segmentation
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Solution Overview
Problem
Existing recurring payment systems face challenges in handling payment authorization failures, particularly in distinguishing between customer payment information errors and system errors, leading to inefficient notification and retry processes, which can result in subscription interruptions and increased call center volumes.
Innovation Solution
A system comprising a central computer system, a recurring payment database, a payment system, and a messaging server that detects payment date, retrieves customer payment information, submits it for authorization, generates notifications for payment information errors, and updates account status, allowing for automatic retry of system errors while notifying customers for payment information errors, enabling seamless recurring payment processing.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If the system notifies customers for all payment authorization failures, then customers are informed of payment issues, but call center volumes increase and customer experience deteriorates
Solution Approach 1:
The patent segments payment authorization failures into two distinct categories: system errors and customer payment information errors. This segmentation enables differentiated notification strategies - system errors trigger automatic retries without customer notification, while customer payment information errors trigger notifications to customers. This resolves the contradiction by selectively notifying customers only when their action is required, reducing unnecessary call center contacts while maintaining adequate notification for actual customer issues.
2Reliability
If the system manually processes all payment authorization failures, then payment issues can be addressed, but processing time increases and operational efficiency decreases
Solution Approach 1:
The patent implements preliminary automated actions based on error classification. When a system error is detected, the system automatically retries the payment authorization without waiting for manual intervention. This preliminary automated retry action resolves many payment failures immediately, reducing the need for time-consuming manual processing while maintaining reliable payment resolution through the combination of automated retry and selective manual notification.
3Productivity
If the system implements automated retry for system errors, then payment processing efficiency improves, but complexity of error handling increases
Solution Approach 1:
The patent applies local quality by implementing different error handling strategies for different error types. System errors receive automated retry handling with exponential backoff, while customer payment information errors receive notification to the customer. This localized differentiation of handling approaches improves overall payment processing efficiency by automating what can be automated, while the structured error classification framework manages complexity through clear, rule-based distinctions rather than monolithic complex logic.
Data Source
AI summary
Systems, apparatuses, and methods are provided herein for automated customer recurring payment processing. A central computer system being configured to detect a payment date for a recurring payment associated with a customer account, retrieve customer payment information, and submit the customer payment information to a bank system. In the event the authorization fails and an error code corresponds to a payment information error, the system automatically generates a notification message to the customer at the messaging server, submits the updated customer payment information to the bank system, and updates an account status of the customer account when a payment authorization is received from the bank system.