Stored Value Database Management for Gift Card Transactions
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Solution Overview
Problem
Gift cards often go unused due to forgetfulness or expiration, leading to wasted prepaid value, and backend systems struggle to utilize these resources for transactions initiated with other payment methods without explicit card information.
Innovation Solution
A system that manages stored value mediums by maintaining a relational database to track and update gift card information, allowing resources to be applied to transactions initiated with different mediums without requiring the gift card to be presented, by linking card information with user or entity identifiers and using machine learning for risk analysis to ensure valid and usable cards are stored.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If gift card information is stored in a database and automatically applied to transactions, then the usability of stored value is improved and waste is reduced, but the system complexity and security risks increase
Solution Approach 1:
The patent introduces a backend system as an intermediary between the gift card database and transaction processing. This backend system automatically matches transactions with applicable gift cards using entity identifiers, eliminating the need for manual card presentation while managing the complexity of automatic application logic centrally rather than at multiple points in the system.
Solution Approach 2:
The system enables gift cards to effectively serve themselves by storing entity identifiers that automatically match with transactions from the same entity. The database structure allows gift card information to be retrieved and applied without human intervention, as the system self-matches transactions with applicable cards based on the entity identifier association.
2Ease of operation
If gift card resources are automatically applied to transactions without card presentation, then transaction convenience is improved, but the risk of fraudulent or invalid card usage increases
Solution Approach 1:
The patent implements a feedback mechanism where the backend system queries the database to verify gift card validity, balance, and entity matching before applying the card to a transaction. The system receives confirmation that the gift card is valid and applicable to the specific transaction before completing the deduction, providing a check that prevents fraudulent usage while maintaining convenience.
Solution Approach 2:
The system performs preliminary verification of gift card validity, balance sufficiency, and entity matching before the transaction is completed. By checking these conditions in advance through database queries and backend validation, the system ensures that only valid, applicable gift cards are used, preventing fraudulent transactions from proceeding.
3Productivity
If a relational database structure is used to link gift card information with user and entity identifiers, then the ability to automatically match and apply cards to transactions is improved, but the data storage and management complexity increases
Solution Approach 1:
The patent creates a universal database structure where entity identifiers serve multiple functions: they link transactions to merchants, connects gift cards to their applicable entities, and enables the automatic matching logic. This multi-use of entity identifiers simplifies the overall data model compared to maintaining separate complex mapping tables for each relationship.
Solution Approach 2:
The patent combines multiple data elements into integrated records in the database. Gift card information, entity identifiers, and user associations are merged into unified database entries that can be queried together. This consolidation reduces the need for multiple separate lookup operations and simplifies data management compared to maintaining separate tables for each data element.
Data Source
AI summary
In some implementations, a device may receive an indication of information associated with a stored value medium. The device may populate a database with the information associated with the stored value medium, where the database includes a table to link the information associated with the stored value medium with an entity identifier of an entity associated with the stored value medium. The device may receive an indication of an exchange associated with the entity identifier of the entity, where the exchange is not associated with the stored value medium. The device may parse the database using the entity identifier associated with the entity to identify the information associated with the stored value medium indicated in the database. The device may communicate, with a backend system, to enable the exchange to be at least partially completed using the resources associated with the stored value medium.