Settlement Card Dynamic Transaction Limits
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Solution Overview
Problem
Current transaction cards fail to meet the needs of large corporate clients requiring flexible payment terms and large purchases, as they are not designed to accommodate changing transaction rules and specific merchant requirements.
Innovation Solution
A settlement card system that issues a card locked for authorized use with a specific merchant, featuring a computing system that determines transaction limits and payment terms dynamically for each transaction, utilizing machine learning and a rules engine to apply custom payment conditions based on customer data and business data.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If a traditional transaction card (debit, credit, prepaid) is used, then the card can be used at multiple locations with standardized rules, but it cannot accommodate changing transaction rules and specific merchant requirements for large corporate purchases
Solution Approach 1:
The patent segments the transaction authorization process into distinct components: a computing system that determines transaction-specific parameters (monetary limits, payment terms) separate from the card itself, and a card that stores settlement data identifying the customer, merchant, and payment service. This segmentation allows the card to remain simple while the backend system handles the complexity of dynamic rule application.
Solution Approach 2:
The patent implements dynamics by allowing transaction parameters (monetary limits, payment terms) to be determined dynamically for each transaction based on customer data and business data, rather than being fixed on the card. The computing system evaluates current conditions and adjusts parameters in real-time, enabling adaptability to changing transaction rules while maintaining system manageability.
2Adaptability or versatility
If a settlement card with dynamic transaction limits and payment terms is implemented, then corporate clients gain flexibility for large purchases, but the system requires complex computing infrastructure with machine learning and rules engines
Solution Approach 1:
The patent introduces a card payment service as an intermediary between the customer/merchant and the complex computing system. The settlement card stores identification data for the customer, merchant, and payment service, creating a layered architecture where the card itself remains simple while the intermediary handles the complexity of interfacing with the computing system that determines dynamic parameters.
Solution Approach 2:
The computing system performs preliminary actions by determining transaction parameters (monetary limits, payment terms) before the actual transaction occurs. This advance determination allows the card to be used with confidence that appropriate controls are in place, while the complexity of parameter determination is resolved beforehand rather than during the transaction.
3Reliability
If transaction parameters are determined dynamically for each transaction, then each transaction can be optimized based on customer and business data, but the processing time and computational resources increase
Solution Approach 1:
The patent implements feedback mechanisms where the computing system determines transaction parameters based on customer data and business data, then these determined parameters are applied to the transaction. The system learns from transaction outcomes and adjusts future parameter determinations, improving accuracy over time while establishing efficient processing patterns that reduce time consumption.
Data Source
AI summary
A settlement card system includes a settlement card that is locked for authorized use with a single card specific merchant. A first computing system is operated by the card issuer and determines a transaction monetary limit and customer payment terms that differ for each subsequent, single transaction by the customer with the card specific merchant. A second computing system forwards the authorization request to the first computing system, which determines if the transaction is within the monetary limit determined for the customer, and if no, reject the transaction, if yes, accept the transaction and determine customer payment terms for that transaction. A third computing system makes payment to the authorized merchant for the transaction after receiving a payment authorization from the first computing system. The first computing system transfers a payment to the third computing system in the amount of the transaction.