Transaction File Splitter for Regional Payment Clearing
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Solution Overview
Problem
Existing payment card processing systems lack the ability to efficiently split and clear transactions according to specific processing agreements, particularly in regions with stringent regulatory requirements, such as Russia, which necessitates separate clearing management systems for domestic transactions.
Innovation Solution
A method and system that receive payment card transaction batches, split them into files based on processing agreements, and distribute these split files to appropriate clearing management systems, utilizing a file distribution system with a preprocessor, split processor, and split monitor to ensure compliance with geographical and currency-based rules.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If a single global clearing management system is used for all payment card transactions, then the clearing process is simplified and centralized, but compliance with regional processing agreements (e.g., Russia's requirement for separate domestic clearing) cannot be achieved
Solution Approach 1:
The patent segments the clearing management system into multiple specialized clearing management systems (global clearing management system and regional clearing management systems) that can independently process transactions according to their respective jurisdictions and processing agreements. This segmentation allows the system to comply with regional requirements like Russia's domestic clearing mandate while maintaining a coordinated global clearing framework.
2Adaptability or versatility
If payment card transaction batches are processed without splitting, then the processing workflow is simpler and faster, but transactions cannot be properly routed to appropriate clearing systems according to processing agreements
Solution Approach 1:
The patent implements preliminary action by automatically splitting transaction batches into separate files designated for different clearing management systems before processing begins. The system pre-routes transactions based on processing agreement criteria (such as Russian domestic transactions requiring separate clearing), ensuring that each clearing system receives only the transactions it is authorized to process, thereby maintaining processing efficiency while achieving compliance.
3Adaptability or versatility
If manual routing of transactions to clearing systems is used, then flexibility in handling different processing agreements is achieved, but processing time increases and operational complexity increases
Solution Approach 1:
The patent implements self-service by enabling the clearing management system to automatically determine and route transactions to the appropriate clearing systems based on pre-configured processing agreement rules. The system autonomously evaluates transaction characteristics (such as whether all parties are located in Russia) and directs them to the appropriate clearing management system without manual intervention, thereby maintaining flexibility in handling diverse processing agreements while eliminating time losses associated with manual routing.
Data Source
AI summary
A payment card transaction clearing system includes a payment card network. A file distribution system coupled to the payment card network includes a split processor configured to receive a batch of payment card transaction records from the payment card network, and split the batch of payment card transactions into one or more split files according to one or more processing agreements. A split monitor processor is configured to send the one or more split files to the payment card network.