Split Tender Prepaid Payment Architecture
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Solution Overview
Problem
Conventional payment systems lack a delayed processing window between point-of-sale transaction authorization and payment authorization request, which can lead to inefficiencies and complexities in managing prepaid transactions and handling returns.
Innovation Solution
A payment management system that introduces a delayed processing window between the completion of a transaction and the transmission of a payment request to an issuer, allowing for the redemption of offers and the use of stored value accounts without prior authorization from another issuer, while maintaining a dynamic electronic receipt for transaction tracking.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If real-time payment authorization is implemented in conventional systems, then transaction approval speed is improved, but system complexity increases when managing prepaid transactions and returns
Solution Approach 1:
The patent segments the payment authorization process into two distinct phases: (1) point-of-sale transaction authorization that occurs in real-time, and (2) delayed payment authorization request transmission that occurs after a processing window. This segmentation allows the system to maintain fast customer-facing transaction approval while deferring the complex prepaid account management and issuer communication to a later time, thereby reducing real-time system complexity.
Solution Approach 2:
The system performs preliminary transaction authorization at the point of sale without immediately transmitting the payment authorization request to the issuer. By completing the customer-facing authorization first and delaying the issuer communication, the system prepares the transaction in advance while avoiding the complexity of real-time prepaid balance verification and issuer coordination during the actual purchase moment.
2Loss of time
If immediate payment request transmission is used, then transaction processing time is reduced, but flexibility in handling offers and stored value is lost
Solution Approach 1:
The system completes the customer-facing transaction authorization in advance without immediately transmitting payment to the issuer. This preliminary action creates a time window during which offers can be redeemed and stored value accounts can be applied, allowing the system to maintain fast transaction processing while gaining the flexibility to handle promotional elements and alternative funding sources.
Solution Approach 2:
The patent introduces a dynamic processing window between transaction authorization and payment request transmission. This dynamic interval allows the system to adaptively handle various scenarios including offer redemption, stored value account usage, and returns processing, while maintaining efficient transaction speeds by not imposing rigid timing constraints on either end of the process.
3Reliability
If prepaid balance verification is performed before transaction approval, then fund availability is ensured, but user convenience is reduced
Solution Approach 1:
The patent separates fund availability verification into two stages: (1) a preliminary check that enables transaction authorization without blocking user experience, and (2) a subsequent verification phase that occurs during the delayed processing window. This segmentation ensures fund availability is ultimately confirmed while avoiding interruptions to the user's shopping and checkout experience.
Solution Approach 2:
The system introduces an intermediary processing window between the user's transaction authorization and the actual fund verification with the issuer. This intermediary phase acts as a buffer that allows the user to complete their purchase seamlessly while the system independently verifies fund availability and processes prepaid account requirements in the background, thereby maintaining both reliability and user convenience.
Data Source
AI summary
A method for maintaining a prepaid payment system comprises a user account that can be utilized to complete a purchase transaction with a merchant. A delayed processing window is introduced between a time when the merchant receives a payment approval notification from the payment system and a time when the payment system transmits a payment request to an issuer of a funding account associated with the user's payment system account. The payment system utilizes a user's stored value account maintained by the payment system to satisfy the requirements of a prepaid program, and therefore processes the payment request received from the merchant and transmits the payment approval notification without obtaining prior authorization from the issuer of the funding account. The payment system submits one or more payment requests for the funding transaction at a time after the completion of the purchase transaction between the user and the merchant.