Rewards Payment Network for POS Transaction Automation
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current infrastructure for non-cash transactions, such as credit transactions, is unable to facilitate automatic rewards-based transactions at the point of sale (POS), requiring users to manually redeem rewards after payment, and merchants lack the infrastructure to validate and accept rewards from different providers.
Innovation Solution
The proposed solution involves a scalable infrastructure, including a rewards payment network that integrates with payment applications, reward providers, and existing payment networks, enabling rewards-based payments without the need for updated POS terminals at merchants.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If manual reward redemption process is used, then users can receive rewards for transactions, but users cannot use rewards as payment and must manually redeem them after payment
Solution Approach 1:
The patent inverts the traditional reward redemption process by allowing rewards to be used directly as payment at the point of sale, rather than requiring manual redemption after payment. The system enables consumers to select rewards from their reward accounts to apply toward purchases, with the rewards payment network processing the transaction and crediting the merchant, thereby eliminating the separate manual redemption step.
Solution Approach 2:
The system performs preliminary actions by pre-approving rewards-based payments before the transaction is completed. The rewards payment network validates the consumer's reward balance and authorization in advance, and the merchant can proceed with confidence that the rewards payment will be processed, eliminating the need for post-transaction manual redemption.
2Adaptability or versatility
If merchants update POS terminals to accept rewards, then rewards-based payments can be processed, but deployment cost and complexity increase
Solution Approach 1:
The patent introduces a rewards payment network as an intermediary between consumers and merchants. This intermediary handles the complex validation of rewards, communication with reward providers, and processing of rewards-based payments. Merchants simply need to integrate with the rewards payment network's API, avoiding the need to update POS terminals or directly implement complex reward validation infrastructure.
Solution Approach 2:
The rewards payment network serves multiple functions: it validates rewards, processes payments, communicates with reward providers, and handles transactions across different merchants. By consolidating these functions in a universal platform, the system eliminates the need for each merchant to implement specialized POS terminal updates for each rewards program.
3Reliability
If rewards validation infrastructure is deployed at each merchant, then rewards can be validated, but deployment burden and cost increase significantly
Solution Approach 1:
The rewards payment network acts as an intermediary that centralizes reward validation infrastructure. Instead of each merchant deploying their own validation systems, the network handles all validation requests, communicating with reward providers to verify reward authenticity, balance, and eligibility. This centralized approach maintains reliable validation while eliminating the deployment burden on individual merchants.
4Productivity
If real-time rewards processing is implemented, then rewards-based payments can be processed during transaction, but system complexity increases
Solution Approach 1:
The rewards payment network serves as an intermediary that handles real-time processing of rewards-based payments. It receives payment requests from merchants, validates rewards in real-time by communicating with reward providers, and processes the transaction if validation succeeds. This centralized real-time processing capability enables fast transaction processing without requiring each merchant's system to handle the complex real-time validation logic.
Data Source
AI summary
In one embodiment, a method includes receiving at a server computing device of an institution network via the institution network a first notification comprising token-based interaction requests for a user interaction with an entity and a second notification indicating an authorization of a non-token based interaction request of the user interaction by a communication network, wherein the entity and the communication network are each separate from the institution network, sending a third notification identifying the user interaction, a client computing device or a user, and the token-based interaction requests by the server computing device to an institution, receiving a fourth notification authorizing the token-based interaction requests at the server computing device and from the institution via the institution network, and sending a fifth notification to the client computing device updating that the token-based interaction requests having been applied to the user interaction by the server computing device.