Repayment Plan Segmentation for Transaction Account Management
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Solution Overview
Problem
Consumers face difficulties in managing transaction account bills due to high perceived time to pay off purchases and hesitation in making large purchases with monthly annual percentage rate (APR) without a clear repayment plan.
Innovation Solution
A system for segmenting multiple repayment schemes that allows consumers to create fixed fee payment plans, removing transactions from revolving APR balances, calculating and presenting finance charges, and managing payments to avoid APR finance charges.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If consumers use revolving APR balances for purchases, then they have flexibility in making purchases, but the time to pay off balances becomes very long and APR finance charges accumulate
Solution Approach 1:
The patent segments the repayment process by dividing transactions into two categories: those eligible for fixed fee payment plans and those remaining in revolving APR balances. This segmentation allows consumers to selectively apply fixed fee plans to specific transactions, thereby reducing the overall time to pay off balances while maintaining flexibility for other purchases that remain in the revolving balance.
2Ease of operation
If consumers use revolving APR balances without a clear repayment plan, then they can make purchases, but they become overwhelmed by bills and hesitant to make large purchases
Solution Approach 1:
The system provides feedback to consumers by presenting a list of transactions eligible for fixed fee payment plans, allowing consumers to see exactly which transactions can be converted. This feedback mechanism simplifies repayment management by giving consumers clear visibility and control over their repayment options, reducing the overwhelming nature of bill management.
Solution Approach 2:
The system enables consumers to self-manage their repayment by allowing them to select which transactions to convert to fixed fee payment plans. This self-service approach empowers consumers to make informed decisions about their own repayment strategies, reducing complexity while maintaining ease of operation.
3Loss of time
If consumers convert transactions to fixed fee payment plans, then the time to pay off balances is reduced and APR finance charges are avoided, but the system complexity increases
Solution Approach 1:
The system segments transactions into distinct repayment categories (fixed fee payment plans vs. revolving APR balances), which simplifies the management of multiple repayment schemes by clearly separating them into manageable groups with different repayment characteristics.
Solution Approach 2:
The system acts as an intermediary by automatically calculating and presenting fixed fee payment plan options to consumers, handling the complexity of repayment calculations and presentations, while consumers only need to make simple selections. This intermediary role reduces the perceived system complexity for end users.
Data Source
AI summary
At least some embodiments of the present disclosure are directed to an exemplary method comprising transferring, via a batch processing operation, real-time user-related activity data of a user from a cache memory storage of a transaction account issuer into a datastore of the transaction account issuer; retrieving additional real-time user-related activity data from the cache memory storage of the transaction account issuer; determining that the additional real-time user-related activity data specifies an event corresponding to a first fixed activity plan agreed to by the user after the batch processing operation; decreasing a maximum limit on a number allowance for the fixed activity plans based at least in part on the event specified in the additional real-time user-related activity data; and determining that the user is eligible for a second fixed activity plan under the decreased maximum limit on the number allowance.