Recurring Payment Override Management System
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Solution Overview
Problem
Recurring payment systems are restrictive in managing changes in pricing and extending payment terms, lacking flexibility to entice consumers and accommodate altered pricing structures.
Innovation Solution
A system that allows consumers to authorize override payments through a graphical user interface, enabling adjustments to the number or amount of recurring payments, which are stored and applied to recurring payment requests, allowing for reduced or prepaid series of payments, and generating card-not-present requests for differences in payment amounts.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If traditional recurring payment systems are used, then payment automation is achieved, but flexibility in pricing structure and term extension is lost
Solution Approach 1:
The system segments recurring payments into individual payment instances, allowing selective override of specific payments while maintaining the overall recurring payment structure. This enables flexible pricing adjustments without disrupting the entire payment arrangement.
Solution Approach 2:
The system introduces dynamic control mechanisms that allow merchants and consumers to modify payment terms in real-time. Override payments can be applied selectively to change pricing structure or extend terms, making the system adaptable rather than static.
2Adaptability or versatility
If fixed-amount charges for fixed term are used, then simple payment processing is maintained, but consumer enticement and flexibility are reduced
Solution Approach 1:
The system enables consumers to self-manage their recurring payments by applying override payments directly through the interface. Consumers can selectively adjust payment amounts or extend terms without requiring merchant intervention or complex re-authorization processes.
Solution Approach 2:
The system allows consumers to pre-apply override payments to future recurring payments. By preparing override payments in advance and storing them in the database, the system enables flexible pricing adjustments to be automatically applied when the original recurring payment date arrives.
3Adaptability or versatility
If override payment option is added to allow flexibility, then pricing adaptability is improved, but system complexity increases
Solution Approach 1:
The system introduces an intermediary override payment mechanism that mediates between the original recurring payment arrangement and the need for flexible adjustments. The override payment acts as a buffer layer that can be applied selectively without fundamentally restructuring the entire payment system.
Solution Approach 2:
The system creates a copy mechanism where override payments replicate the functionality of recurring payments but with modified terms. Instead of creating entirely new payment structures, the system copies the original payment framework and applies selective modifications through override payments.
Data Source
AI summary
The subject invention advantageously allows a merchant to provide an override payment option, as an enticement, to pre-pay all or a portion of a series of recurring payments. With respect to recurring payments, the subject invention allows a merchant to alter pricing, if necessary, and/or to charge beyond a fixed term, e.g., to maintain a subscription. The invention includes monitoring payment requests made on a recurring payment basis over a payment network to ensure that any override payment is being properly accounted for along with any adjusted pricing and/or additional payments. This unconventional processing is not provided for with standard recurring payment systems.