Transaction Blocking Server for Payment Clearing Control
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Solution Overview
Problem
Current authorization controls in payment transactions are inadequate as they may not prevent transactions from proceeding even when restrictions are set, leading to unintended clearing of transactions, especially due to 'floor limits' and network issues.
Innovation Solution
Implementing a system where a server computer receives transaction clearing requests and determines if they satisfy stored blocking parameters, allowing or denying transactions based on these parameters, and optionally sending notifications for blocked transactions, allowing for granular control over transaction types and locations.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If authorization controls are implemented at the authorization stage, then transaction authorization can be controlled, but transactions may still clear inadvertently due to floor limits and network issues
Solution Approach 1:
The system performs preliminary blocking parameter configuration and storage before transactions occur. Blocking parameters are pre-defined and stored in the payment processing network, enabling automatic evaluation against clearing requests without real-time complex decision-making, thus improving reliability while maintaining simplicity
Solution Approach 2:
The patent introduces an intermediary blocking mechanism between authorization and clearing stages. The payment processing network acts as a mediator that independently evaluates clearing requests against stored blocking parameters, providing an additional control layer that prevents inadvertent clearing without requiring complex modifications to existing authorization systems
2Productivity
If floor limits are implemented at merchants, then small transactions can be processed quickly, but authorization controls cannot be invoked for these transactions
Solution Approach 1:
The patent adds a new dimensional control layer at the clearing stage that operates independently from the authorization stage. Instead of trying to enhance authorization controls, the system implements blocking parameters that evaluate transactions in a separate dimension (clearing vs. authorization), allowing floor limit transactions to proceed quickly while still being subject to blocking rules
Solution Approach 2:
Blocking parameters are pre-configured and stored before clearing requests occur. This preliminary action enables the system to quickly evaluate clearing requests against predetermined blocking criteria without requiring complex real-time authorization decisions, thus maintaining processing speed while ensuring control effectiveness
3Adaptability or versatility
If granular transaction controls are implemented, then specific transaction types and locations can be restricted, but the system complexity increases
Solution Approach 1:
The patent segments blocking parameters into distinct, independent categories (e.g., merchant category codes, geographic regions, transaction types). Each parameter can be independently configured, stored, and evaluated. This segmentation allows granular control over different transaction aspects without creating a monolithic complex system, as each parameter operates as a separate controllable unit
Solution Approach 2:
The system enables dynamic configuration of blocking parameters without requiring system restructuring. Users can modify parameter values (e.g., adding/removing merchants, changing geographic boundaries, adjusting transaction thresholds) while the underlying evaluation mechanism remains constant. This parameter-based approach provides granular adaptability while maintaining system simplicity
Data Source
AI summary
A system and method are disclosed. The method includes receiving, at a server computer, a transaction clearing request for a transaction, and then determining, using the server computer, if the transaction satisfies a stored blocking parameter. The method further includes allowing, using the server computer, the transaction clearing request if the transaction does not satisfy the stored blocking parameter, and denying, using the server computer, the transaction clearing request if the transaction satisfies the stored blocking parameter.