Repetitive Financial Transaction Blocking System
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Repetitive financial authorization and clearing transaction requests from fraudsters or unscrupulous merchants can overwhelm card-issuer processing systems, leading to network congestion, undesired approvals, and excessive fees, as existing systems struggle to effectively identify and block such malicious activities.
Innovation Solution
A computer-implemented method and system that monitor communications networks for patterns of declined financial transaction requests, identifying repetitive submissions from a source for the same transaction, and block subsequent requests, using criteria such as the number of requests, time period, and transaction amount, while employing machine learning to adapt to manipulations, and imposing penalties on abusive merchants or acquirers.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If card-issuers process all authorization requests without filtering, then transaction processing completeness is maintained, but network congestion and system overload occur
Solution Approach 1:
The system performs preliminary analysis of authorization requests to identify repetitive patterns before they reach the card-issuer's processing system. By detecting and blocking repetitive requests in advance through monitoring systems that track request patterns, sources, and time intervals, the system prevents network congestion before it occurs, maintaining both processing completeness and network stability
Solution Approach 2:
The patent introduces an intermediary monitoring system that sits between the authorization request sources and the card-issuer's processing system. This intermediary analyzes request patterns, identifies repetitive submissions, and blocks them before reaching the main system, thus protecting network stability while allowing legitimate transactions to proceed
2Reliability
If card-issuers block all repetitive requests, then network congestion is prevented, but legitimate transactions may be incorrectly blocked
Solution Approach 1:
The system applies different treatment to different types of requests based on their characteristics. It analyzes specific parameters such as request source, time intervals between requests, and pattern consistency to distinguish between malicious repetitive requests and legitimate retry attempts. By applying blocking only to requests that match the repetitive pattern criteria while allowing others to pass through, the system maintains network stability without incorrectly blocking legitimate transactions
3Reliability
If monitoring and analysis systems are implemented to detect repetitive requests, then fraud prevention capability is improved, but system complexity increases
Solution Approach 1:
The monitoring system automatically detects repetitive request patterns by tracking and analyzing authorization requests in real-time without requiring manual intervention. The system self-identifies sources, time intervals, and pattern characteristics, and automatically blocks detected repetitive requests, reducing the need for complex manual monitoring infrastructure while maintaining high fraud detection capability
Data Source
AI summary
A system and computer-implemented method for identifying and blocking repetitive submissions from a fraudster or unscrupulous merchant/acquirer to a card-issuer for the same financial transaction. A communications network is monitored for financial transaction requests and responses being communicated between the fraudster or unscrupulous merchant/acquirer and the card-issuer. The requests are analyzed to identify a pattern in a subset of the requests which the card-issuer has declined. The pattern identifies the subset of the requests as repetitive submissions from the merchant/acquirer for the same financial transaction. The pattern may be based on the number of requests from the same merchant/acquirer, the same card number, the same reason code for declining the requests, the same transaction amount, and being received within a particular time period. The next submission for the same transaction is blocked from reaching the card-issuer. The total number of blocked submissions may be tracked, and the merchant/acquirer may be penalized if they become excessive.