Recurring Payment Processing via Account Number Mapping
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Solution Overview
Problem
Conventional recurring payment processing systems are inconvenient for users, as they require manual updates to new card information for each merchant, lack user control over payment continuation, and increase the risk of new account information compromise due to unnecessary distribution.
Innovation Solution
A method and system where a server computer generates a list of merchants for a user with recurring payments using old account information, allowing the user to select which merchants to continue payments with new account information, thereby eliminating the need for merchants to update consumer data and reducing the risk of information compromise.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If new account information is distributed to merchants for recurring payments, then recurring payments can be processed with updated card information, but the risk of information compromise increases
Solution Approach 1:
The patent extracts the new account information from the distribution chain by having the payment card issuer directly provide updated account information to the payment processing network, eliminating the need for merchants to receive and store this sensitive data. This extraction of the harmful element (new account information) from the system resolves the contradiction by maintaining payment processing reliability while eliminating information compromise risk.
Solution Approach 2:
The payment processing network acts as an intermediary between the payment card issuer and merchants. Instead of merchants directly receiving new account information from issuers, the network mediates this communication by receiving account updates from issuers and using them to process recurring payments without exposing merchant systems to the sensitive information. This intermediary approach maintains payment processing while reducing security risks.
2Reliability
If merchants maintain and update consumer account information, then recurring payments can be processed, but the operational overhead and complexity increase
Solution Approach 1:
The system enables self-service by allowing the payment card issuer to automatically provide updated account information directly to the payment processing network without requiring merchant intervention. Merchants no longer need to manually update consumer account information or maintain complex account management systems. The issuer's system automatically services the account update function, reducing merchant operational overhead and system complexity.
Solution Approach 2:
The patent merges the account information management function into the payment processing network and issuer systems, eliminating the need for separate merchant account management systems. By combining these functions at the network and issuer level, the solution reduces the number of systems that need to maintain consumer account information, thereby reducing overall operational overhead and complexity for merchants.
3Adaptability or versatility
If users must contact each merchant individually to update card information, then user control is maintained, but convenience and time efficiency deteriorate
Solution Approach 1:
The system performs preliminary action by automatically notifying users when their payment card account information changes and proactively presenting them with a list of merchants for whom to continue or discontinue recurring payments. This preliminary notification and selection process eliminates the need for users to manually contact each merchant after the fact, saving significant time while maintaining user control over their recurring payments.
Solution Approach 2:
The system implements feedback by automatically notifying users of account information changes and providing them with real-time control options regarding their recurring payments. This feedback loop allows users to make informed decisions about which merchants to continue or discontinue payments with, maintaining adaptability and user control while dramatically reducing the time and effort required compared to manual merchant-by-merchant contact.
4Ease of operation
If automatic replacement of old card information with new information occurs, then user convenience is improved, but user control over payment continuation is reduced
Solution Approach 1:
The system applies dynamics by providing users with dynamic control options after notifying them of account information changes. Rather than automatically replacing card information without user input, the system dynamically presents users with a list of merchants and allows them to select which recurring payments to continue or discontinue. This dynamic approach combines the convenience of automatic notification and processing with maintained user control and adaptability.
Data Source
AI summary
Techniques for processing of recurring payments are provided that do not require merchants to update consumer account information when a consumer is issued a new account number for a payment card or the like. For example, when a consumer is issued a new account number by an issuer, the new account number can be provided to a payment processing network. A server computer in the payment processing network then identifies any recurring payments associated with the user's old account number and provides the consumer with a list of merchants for which the consumer had established recurring payments associated with the old account number. The consumer is then provided the opportunity to select those merchants for whom the consumer wishes to continue the recurring payments using the new account number. The payment processing network then creates a mapping between the old account number and the new account number for the merchants designated by the consumer and continues to process recurring payment authorization requests received from the designated merchants using the old account information. As a result, the merchants do not need to make any updates to the consumer account information maintained by the merchants, and the consumer is provided with the ability to easily select which merchants can continue processing recurring payments using the old account number.