Tokenized Promotion Authorization at POS Without Coupon Handling
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Solution Overview
Problem
The inconvenience of using conventional coupons, which require printing or storing as graphic images, hinders the efficient redemption of promotions at point of sale terminals.
Innovation Solution
A system and method for managing promotions at a merchant's point of sale terminal using an acquirer computing system to identify and apply promotional offers based on transaction data, including SKU information, ensuring transparency and efficiency in the payment process.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If physical coupons or graphic images are used for promotion redemption, then the promotion can be redeemed at point of sale terminals, but the process becomes inconvenient and cumbersome for consumers and merchants
Solution Approach 1:
The patent replaces the mechanical system of physical coupons and graphic images with a digital token-based system. Tokens are transmitted electronically through communication interfaces between portable devices and point of sale terminals, eliminating the need for physical handling and visual verification of coupons. This substitution directly resolves the contradiction by improving ease of operation while reducing process complexity.
Solution Approach 2:
The patent creates digital copies of promotion credentials in the form of tokens that can be transmitted electronically. Instead of requiring original physical coupons or printed images, the system uses replicable digital token representations that convey the same promotional information. This copying approach enables convenient electronic transmission and processing, resolving the contradiction between ease of operation and process complexity.
2Ease of operation
If digital promotions are applied transparently during transactions, then convenience of promotion redemption is enhanced, but transaction processing time may increase
Solution Approach 1:
The patent performs promotion identification and token validation as preliminary actions during the authorization request process. By integrating promotion checking into the existing authorization flow rather than adding separate steps, the system applies promotions transparently without significant time addition. This preliminary action approach resolves the contradiction by maintaining convenience while minimizing time loss.
Solution Approach 2:
The patent merges the promotion redemption process with the existing transaction authorization process. Instead of handling promotions as a separate step, the system combines promotion identification, token validation, and discount application within the same authorization request flow. This merging eliminates additional time requirements while preserving the convenience of automatic promotion application.
Data Source
AI summary
Systems and methods for applying a promotion to a payment transaction originating at a point of sale system of a merchant are described. Transactional information is provided to an acquirer computing system of the merchant. Based on identifying indicia associated with the transactional information, the acquirer computing system determines whether to modify the payment transaction messaging before communicating it along to an issuer computing system.


