Stored Value Card Currency Conversion System
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
In the market for stored value cards, issuers face challenges in distinguishing their products from competitors, making it difficult for consumers to choose between various options, and there is a need for a system that allows value transformation and incentives to encourage purchases and redemptions.
Innovation Solution
A stored value card transaction system that enables consumers to transform card values, includes a point of sale component, a transaction computer, a datastore, and card issuer authorization systems, allowing for activation, deactivation, and value addition or subtraction, with mechanisms for value added awards and promotions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If card issuers offer traditional stored value cards with fixed values, then the card structure is simple and easy to manufacture, but the cards cannot be differentiated from competitors and lack consumer appeal
Solution Approach 1:
The patent implements dynamic value transformation capabilities where card values can be converted between different currencies and denominations. The system allows cards to change their value state based on exchange rates, user requests, and merchant requirements, transforming static cards into dynamic financial instruments that adapt to different transaction scenarios
Solution Approach 2:
The patent creates a universal card system that can function across multiple merchants, currencies, and value transformations. A single card can be redeemed at various merchants, converted to different denominations, and used for multiple transaction types, making one card perform multiple functions that previously required several different cards
2Productivity
If the system enables value transformation and incentives, then consumer engagement and purchases are encouraged, but the transaction processing complexity increases
Solution Approach 1:
The patent introduces a card issuer as an intermediary between the cardholder and merchant that manages value transformation, currency conversion, and incentive calculations. This intermediary handles the complex computations and coordinate all parties, simplifying the interface each participant sees while enabling sophisticated value management in the background
Solution Approach 2:
The system performs preliminary value transformations, exchange rate calculations, and incentive determinations before the actual redemption transaction. By pre-calculating and preparing value transformations in advance, the system reduces processing complexity during the actual transaction moment and enables faster checkout experiences
3Adaptability or versatility
If multiple card issuers and merchants are involved, then the marketplace has diverse options for consumers, but it becomes difficult for individual issuers to distinguish their cards
Solution Approach 1:
The patent enables each card issuer to apply local quality features to their cards through customized incentive structures, value transformation options, and merchant networks. Each issuer can tailor their card's characteristics and benefits to differentiate from competitors while operating within the broader multi-issuer marketplace framework
Data Source
AI summary
A computer implemented system and method for facilitating a consumer's purchase transaction via a merchant's foreign website utilizes a stored value card transformation computer to convert a stored value card to a different denomination for utilization in another country. An exchange computer retrieves a value rate to calculate the currency different and a time-limited quote is generated which may be transformed into active stored credit in the selected denomination.