Remote POS Transaction Routing During Terminal Network Failures
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Solution Overview
Problem
Payment terminals may malfunction, preventing the initiation of payment transactions due to communication failures with transaction processing networks.
Innovation Solution
A system and method for managing transactions using a remote payment entity to process transactions by communicating with acquirer systems, transmitting confirmation messages, and handling identifiers and data to facilitate transactions even when a merchant's POS device malfunctions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If a payment terminal is used for processing transactions, then transaction processing capability is improved, but system reliability deteriorates when communication failures occur with transaction processing networks
Solution Approach 1:
The patent introduces a remote payment entity system as an intermediary between the merchant system and the transaction processing network. When the local payment terminal cannot communicate with the transaction processing network, the remote payment entity system receives transaction requests from the merchant system, processes them through acquirer systems, and returns authorization responses. This intermediary mechanism ensures transaction continuity despite communication failures between the local terminal and the central network.
2Ease of operation
If a stand-alone payment terminal is used, then ease of operation is improved, but transaction initiation capability deteriorates when network communication is unavailable
Solution Approach 1:
The patent segments the transaction processing system into multiple independent components: the local payment terminal, the merchant system, the remote payment entity system, and acquirer systems. Each component can operate semi-independently, allowing the merchant system to initiate transactions directly with the remote payment entity system when the local terminal's network connection is unavailable, thus maintaining transaction initiation capability while preserving ease of operation.
Data Source
AI summary
Methods are provided for conducting a transaction involving a remote point-of-sale (POS) device that include receiving a transaction request message from a remote payment entity system, wherein the transaction request message is associated with a transaction involving a merchant system, the merchant system is located remote from the remote payment entity system, and the transaction request message includes an identifier of the merchant system, an identifier of the remote payment entity system, and transaction data associated with the transaction; processing the transaction based on the transaction request message by communicating with an acquirer system corresponding to the merchant system; and transmitting, with the at least one processor, at least one transaction confirmation message to the merchant system and the remote payment entity in response to receiving a transaction authorization response message from the acquirer system. Systems and computer program products are also disclosed.