Split Tender Charge Allocation in Digital Wallets
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Solution Overview
Problem
Conventional digital wallets typically allow only one payment method for transactions, making split tender retail payments complex due to differences in Approved Product Lists (APL) and eligibility across various payment methods, leading to friction during checkout and requiring manual matching of payment instruments with eligible products.
Innovation Solution
A system and method for automatic charge allocation in digital wallets that utilize stored eligibility rules for different payment methods, determining an allocation order based on payment method eligibility and product characteristics, allowing for split tender transactions across multiple payment types, such as credit cards, gift cards, and benefits cards, and incorporating customer preferences and past transaction behavior.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If manual matching of payment instruments with eligible products is required, then payment method eligibility can be ensured, but checkout friction increases and operation ease deteriorates
Solution Approach 1:
The system performs automatic charge allocation where the payment system itself matches payment instruments with eligible products without requiring manual user intervention. The control circuit automatically determines allocation order and charge allocation based on eligibility rules, allowing the system to serve itself in resolving the matching complexity.
Solution Approach 2:
The system pre-stores eligibility rules for different payment methods in advance. Before the actual transaction occurs, the system has already prepared the allocation order and charge allocation determinations based on these pre-stored rules, eliminating the need for real-time manual matching during checkout.
2Device complexity
If only one payment method is allowed per transaction, then system complexity is reduced, but payment versatility and adaptability are limited
Solution Approach 1:
The payment transaction is segmented into multiple charge allocations across different payment instruments. Instead of treating the transaction as a single payment method selection, the system divides the total charge into portions that can be allocated to multiple payment methods based on eligibility rules and allocation order.
Solution Approach 2:
The payment system is designed to handle multiple payment method types (credit cards, gift cards, benefits cards, etc.) within a single transaction framework. The system universally processes different payment instrument combinations through the same automatic charge allocation mechanism, enabling multi-functionality without proportionally increasing complexity.
3Ease of operation
If automatic charge allocation is implemented, then operation ease and checkout speed improve, but system complexity and processing requirements increase
Solution Approach 1:
The system pre-stores eligibility rules for different payment methods before transactions occur. This preliminary preparation of rule sets allows the automatic charge allocation to proceed efficiently during checkout without requiring complex real-time rule generation, reducing the processing burden during actual transactions.
Solution Approach 2:
The system uses stored eligibility rules as templates that can be rapidly applied and copied for different transactions. Instead of creating new allocation logic for each transaction, the system replicates and applies the pre-established eligibility rules and allocation order determinations, simplifying the processing complexity.
Data Source
AI summary
In some embodiments, systems, apparatuses and methods are provided herein useful to provide charge allocation for split tender transactions. In some embodiments, a system includes a payment rules database, a product database, a customer database, a network interface, and a control circuit. In some embodiments, the control circuit: retrieves payment instruments associated with a customer account; retrieves eligibility rules associated with the payment instruments; receives a list of products for purchase; determines an allocation order for the payment instruments; determines a charge allocation between the payment instruments; causes the charge allocation to be displayed via a user payment user interface on a user device; and processes a transaction using two or more of the payment instruments based on the charge allocation.