Stand-In Processing Using POS Entry Modes
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current stand-in processing systems for payment card transactions are limited by relying solely on Bank Identification Number (BIN) ranges for authorization, lacking flexibility in customization and not allowing for processing based on point of sale (POS) entry modes.
Innovation Solution
A system and method that processes transactions based on POS entry modes using a processor and memory unit, employing stand-in rules and zone control master keys to approve or decline transactions, allowing for customization beyond BIN-based setups.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If stand-in parameters are based on BIN range, then authorization control is established, but customization flexibility is limited
Solution Approach 1:
The patent changes the basis of stand-in parameters from BIN range to POS entry mode. This parameter change enables issuers to customize authorization rules based on different transaction entry methods (e.g., swipe, chip, contactless, mobile payment), significantly improving customization flexibility while maintaining a manageable parameter structure.
Solution Approach 2:
The patent segments transactions by POS entry mode into distinct categories. By dividing the authorization control into separate rules for different entry modes (magnetic stripe, EMV chip, contactless, mobile device), the system achieves fine-grained customization without creating excessive complexity, as each segment can be independently configured.
2Reliability
If issuer systems are unavailable, then transaction processing must continue, but authorization accuracy may be compromised
Solution Approach 1:
The patent implements preliminary action by pre-configuring stand-in authorization rules for different POS entry modes before issuer system failures occur. These pre-established rules enable the payment card network to automatically process transactions on behalf of the issuer without real-time issuer system involvement, ensuring processing continuity while maintaining authorization accuracy through pre-defined criteria.
Solution Approach 2:
The patent introduces the payment card network as an intermediary that steps in when the issuer system is unavailable. This intermediary uses the pre-configured stand-in rules based on POS entry mode to make authorization decisions, bridging the gap between acquirer and issuer systems while maintaining authorization integrity without requiring real-time issuer system availability.
3Productivity
If all transactions are processed through issuer systems, then authorization control is maintained, but processing load increases
Solution Approach 1:
The patent applies partial action by implementing stand-in processing for only certain transactions based on POS entry mode rather than requiring all transactions to go through the issuer system. This allows the system to handle low-value or routine transactions through the more efficient payment card network while reserving issuer system processing for higher-value or complex transactions, thereby reducing overall processing load while maintaining necessary authorization control.
Data Source
AI summary
A system and method for stand-in processing are provided. The system includes a processor and a memory unit communicatively coupled to the processor. The memory unit is configured to store transaction data received from an acquirer corresponding to a transaction made by a payment card. The processor is configured to determine data representing a point of sale (POS) entry mode of the transaction from the transaction data and, using one or more stand-in rules provided by an issuer of the payment card, process the transaction on behalf of the issuer based on the data representing the POS entry mode. Processing includes approving or declining the transaction.