Reward Portal for Seamless Payment Network Integration
Solution Overview
Problem
Existing electronic payment processing systems face challenges in efficiently processing reward redemption transactions without modifying the existing communication protocol, which complicates the integration of reward processing within the payment network.
Innovation Solution
A system and method that utilize a portal to facilitate reward redemption by associating user IDs with reward accounts, allowing for just-in-time account setup and processing of reward transactions using virtual or prepaid accounts within the existing payment processing network, without altering the communication protocol.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If the communication protocol is extended to process reward transactions, then the functionality of the payment system is improved, but the device complexity and difficulty of implementation increase
Solution Approach 1:
The system segments reward processing into a separate module that operates independently from the core payment protocol. The reward host system handles reward-specific logic (crediting, redeeming, balance inquiries) while the existing payment network processes transactions using standard protocols. This segmentation allows the payment system to gain reward processing functionality without modifying the core communication protocol.
Solution Approach 2:
The patent introduces a reward host system as an intermediary layer between the payment network and reward accounts. This intermediary translates reward-related operations into standard payment network transactions, enabling reward processing without protocol modifications. The reward host acts as a mediator that converts loyalty program operations into formats compatible with existing payment infrastructure.
2Stability of the object's composition
If a separate reward processing system is implemented, then the existing payment protocol remains unchanged, but the device complexity increases due to additional components
Solution Approach 1:
The patent merges the reward processing functionality with the existing payment network infrastructure by having the reward host system utilize standard payment network protocols and existing computing resources. Instead of building a completely separate system, the reward host combines reward management logic with the payment network's transaction processing capabilities, reducing overall system complexity while maintaining protocol stability.
Solution Approach 2:
The reward host system is designed with multi-functionality, serving as both a reward management platform and a payment transaction processor. It can handle various reward operations (crediting, redeeming, balance inquiries) while also processing standard payment transactions through the existing network. This universality reduces the need for separate dedicated systems for different functions.
3Productivity
If virtual accounts are used for reward redemption, then the processing efficiency is improved, but the loss of time for account setup may increase
Solution Approach 1:
The system performs preliminary actions by pre-establishing virtual accounts and associating them with user IDs before reward redemption transactions occur. The reward host system maintains a mapping between user IDs and virtual account identifiers in advance, so that when a reward redemption is requested, the system can quickly locate and use the pre-configured virtual account without delay.
Solution Approach 2:
The system implements self-service mechanisms where the reward host automatically manages virtual account creation, association, and retrieval processes. When a user initiates a reward redemption, the system automatically identifies the corresponding virtual account and processes the transaction without requiring manual account setup or user intervention, thereby minimizing setup time while maintaining high processing efficiency.
Data Source
AI summary
Communication systems and methods to transmit data among a plurality of computing systems in processing benefit redemption, including a portal configured to communicate with transaction terminals, reward hosts and issues processors. In response to a reward balance inquiry from a transaction terminal, the portal communicates with a respective reward host to obtain the balance, communicates with an issuer processor to obtain a one-time use account number, and provides the transaction terminal with the balance and the account number. The transaction terminal an authorization request for a payment transaction made using the account number. In response to the authorization request being received in the issuer processor, the portal communicates with the issuer processor to identify the payment transaction and communicates with the reward host to perform a reward redemption to support the payment transaction.