Split Transaction Processing for Rewards Currency Reconciliation
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Solution Overview
Problem
Existing transaction processing systems generate confusing statements for customers when rewards points are applied to transactions, as they are typically debited for the full amount initially and credited later, leading to disputes and unclear financial balances.
Innovation Solution
A system that processes rewards currency and funds-based transactions together as split transactions, crediting the transaction account for the funds balance and rewards account separately, and generates statements showing both balances, allowing for immediate reconciliation and dispute resolution.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of manufacture
If rewards points are applied to transactions after the full amount is debited, then the transaction can be processed with existing accounting systems, but customer statements become confusing and disputes arise
Solution Approach 1:
The system performs preliminary action by applying rewards points to the transaction account balance before the customer is debited for the full transaction amount. This advance application of rewards prevents the confusion of seeing full debits without corresponding credit entries, while still allowing the transaction to be processed through existing accounting infrastructure.
Solution Approach 2:
The system introduces an intermediary mechanism where the rewards account is credited first, then the transaction account is debited for the net amount. This intermediary sequencing of operations resolves the information loss by ensuring the customer sees accurate, confusion-free statements showing the rewards application before the final debit.
2Device complexity
If rewards points are applied separately from credit transactions, then existing processing systems can be used, but dispute resolution becomes difficult and financial balances become unclear
Solution Approach 1:
The system merges the rewards transaction processing with the credit transaction processing into a unified split transaction framework. Both rewards currency and funds are processed together in the same transaction flow, allowing accurate tracking and resolution of disputes by examining the complete transaction record rather than separate processed entries.
Solution Approach 2:
The system implements feedback mechanisms by generating statements that show both the rewards currency balance and the funds balance, allowing customers to verify the accuracy of rewards application and transaction processing. This feedback enables easy dispute resolution by providing transparent information about what was applied and what remains.
3Device complexity
If the full transaction amount is debited before rewards are applied, then accounting simplicity is maintained, but customer understanding and satisfaction deteriorate
Solution Approach 1:
The system applies rewards points to the customer's account balance before processing the debit for the full transaction amount. This preliminary application ensures that when the customer receives their statement, they see the rewards already applied, making the transaction clear and easy to understand while maintaining accounting simplicity through automated processing.
Data Source
AI summary
The present disclosure includes a system, method, and article of manufacture for performing dispute resolution. The method may include retrieving an identifier that associates a funds request with a rewards currency request, crediting, based on the identifier, a transaction account based upon the funds request, and crediting, based on the identifier, a rewards account based upon the rewards currency request. The method may further comprise crediting the transaction account less a value associated with the rewards currency request and/or generating a first statement that shows a funds balance and a second statement that shows a rewards currency balance. A funds balance may be credited by an amount associated with the funds request, and a rewards currency balance may be credited by an amount associated with the rewards currency request.