Transaction Data Aggregation via Merchant Category Code Intermediary
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Solution Overview
Problem
Existing electronic card networks face challenges in aggregating and tracking data for card transactions across different merchant category codes, requiring integration with digital networks and specific data processing systems to provide rewards and benefits to users.
Innovation Solution
Implementing a system that integrates online transaction processors with electronic card networks using merchant category codes (MCCs) to aggregate transaction data, allowing for real-time or periodic processing and reward determination based on transaction categories, with dynamic selection criteria and flexible reward structures.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If online transaction processors integrate with electronic card networks to aggregate transaction data by merchant category codes, then data aggregation capability and reward personalization improve, but system complexity and integration requirements increase
Solution Approach 1:
The patent introduces an intermediary system that sits between the electronic card network and the online transaction processor. This intermediary receives transaction data from the card network, processes the merchant category code aggregation, and delivers processed data to the online platform. This mediator layer simplifies the integration requirements for the online transaction processor while maintaining enhanced data aggregation capabilities.
Solution Approach 2:
The patent segments the data aggregation function into a separate modular component that can be independently implemented. Rather than requiring full system integration, the aggregation function is divided into discrete processing steps that can be implemented incrementally, reducing overall system complexity while maintaining versatility.
2Measurement precision
If real-time or periodic transaction data processing is implemented for reward determination, then reward calculation accuracy and user experience improve, but processing time and computational resources increase
Solution Approach 1:
The patent implements a hybrid processing approach where transactions are initially processed in batches periodically, and only specific transactions requiring immediate reward determination are processed in real-time. This periodic action reduces overall processing time while maintaining accuracy for critical reward calculations through selective real-time processing.
Solution Approach 2:
The system performs preliminary categorization and filtering of transactions before final reward calculation. By pre-processing transaction data to identify only those requiring detailed analysis, the system reduces the computational burden on final reward determination, thereby decreasing processing time while preserving accuracy for relevant transactions.
3Adaptability or versatility
If multiple benefit selection rules are implemented for dynamic reward selection, then reward personalization and user satisfaction improve, but system complexity and rule management difficulty increase
Solution Approach 1:
The patent implements dynamic benefit selection rules that automatically adapt based on transaction patterns, user preferences, and merchant categories. Rather than requiring manual configuration of multiple static rules, the system dynamically selects and adjusts rules based on real-time data, reducing rule management complexity while enhancing personalization capabilities.
Solution Approach 2:
The system employs self-service mechanisms where the reward determination algorithm automatically selects appropriate benefit rules without requiring manual intervention. The system serves itself by autonomously managing rule selection and adjustment based on predefined criteria, thereby reducing the operational burden of complex rule management while maintaining high levels of reward personalization.
Data Source
AI summary
There are provided systems and methods for automatic determination of card data based on network category codes. A user may engage in a transaction with another user, such as a purchase of goods, services, or other items a merchant using a physical payment card. An online transaction processor may receive information from processing of the payment card over an electronic card network so that the online transaction processor may determine data for the payment card. The data may be determined over a time period, which may be dynamically adjusted based on additional data for the user, time period, and/or payment card. The data is further identified and determined based on network category codes for different transaction data when processed over the electronic network. Thereafter, categories of data may be selected to provide benefits back to the user's account or payment card.