Transaction Handler Reward Processing via ISO 8583
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Solution Overview
Problem
Traditional methods for facilitating communications among partners in loyalty programs for credit and/or redemption of rewards are cumbersome and difficult to manage, requiring significant infrastructure setup and system development.
Innovation Solution
An enhanced communications system for financial transactions, similar to credit/debit transactions, is configured to support reward transactions, using a transaction handler to process credit and redeem reward messages in a standardized format, such as ISO 8583, allowing simpler and more efficient implementation of loyalty programs.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional methods are used to facilitate communications among partners in loyalty programs, then reward transactions can be processed, but the system becomes cumbersome and difficult to manage with significant infrastructure setup and system development required
Solution Approach 1:
The patent applies universality by enabling the existing financial transaction communications system to handle both traditional credit/debit transactions and reward transactions through a standardized message format. The transaction handler is enhanced to process multiple types of transactions (credit, debit, and reward) using the same infrastructure, eliminating the need for separate dedicated systems for reward transactions.
Solution Approach 2:
The patent changes the parameter of message format standardization by implementing ISO 8583 standardized messages for reward transactions. This parameter change allows reward transactions to be processed through existing financial transaction channels that expect standardized formats, thereby reducing infrastructure complexity while maintaining reliability.
2Ease of operation
If traditional loyalty program systems are implemented, then reward accumulation and redemption can occur, but the implementation becomes difficult to manage and requires significant system development
Solution Approach 1:
The patent merges reward transaction processing with the existing financial transaction processing system. By combining these functions into a single standardized communications framework, the system becomes easier to operate as it leverages familiar financial transaction channels and infrastructure, reducing the operational burden while minimizing additional system development requirements.
3Adaptability or versatility
If separate systems are used for reward transactions, then specific reward processing can be achieved, but the solution becomes less scalable and more costly for new partnerships
Solution Approach 1:
The patent enhances the transaction handler to universally process multiple transaction types (credit, debit, and reward) through a single standardized interface. This multi-functionality allows new partnerships to be onboarded faster without requiring separate dedicated reward processing systems, thereby improving scalability and reducing costs while maintaining adaptability to different transaction types.
4Productivity
If traditional communication methods are used among loyalty program partners, then reward information can be exchanged, but the process becomes cumbersome and slower
Solution Approach 1:
The patent changes the communication parameter by adopting ISO 8583 standardized message formats for reward transactions. This standardization allows reward information to be exchanged through existing fast financial transaction channels, improving productivity by eliminating the need for custom, slower communication protocols while reducing the complexity of communications infrastructure.
Data Source
AI summary
A communications system for financial transactions, such as payment transactions made via credit accounts, debit accounts, prepaid accounts, bank accounts, stored value accounts and the like, is enhanced and/or used to support reward transactions. Thus, the reward communications can be processed as transactions over the communications system in a way similar to and/or together with credit/debit transactions.