Transaction Handler Splitting Payments and Offers

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Solution Overview

Problem

Current systems for processing payments and redeeming offers are inefficient, leading to duplicative computation resource allocation, time delays, and separate processing of payments and offers, which hampers interoperability and resource utilization.

Innovation Solution

A transaction handler is configured to determine if a payment transaction is eligible for an offer benefit, splitting the transaction into multiple transactions to apply the offer benefit, allowing for real-time, integrated processing of payments and offers without modifying existing infrastructure, using a data warehouse to associate offers with user accounts and detecting eligible transactions for automated redemption.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Productivity

If separate systems are used for payment processing and offer processing, then system simplicity is maintained, but processing efficiency deteriorates due to duplicative computation resources and time delays

Engineering Contradiction:

Improveprocessing efficiencyVSAvoidsystem integration complexity

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The patent merges payment processing and offer processing into a single integrated system. The transaction handler receives authorization requests containing both payment information and offer redemption requests, processes them simultaneously, and generates a single authorization response. This eliminates the need for separate processing systems and reduces duplicative computation resources while maintaining manageable system complexity through unified architecture.

Inventive Principle:

Principle #5Merging (Combining)

Solution Approach 2:

The transaction handler is designed as a multi-functional system that can process both payment transactions and offer redemptions within the same authorization request. It identifies eligible offers, determines benefit amounts, and applies discounts or rewards all while handling the payment authorization, making a single system capable of performing multiple functions that previously required separate systems.

Inventive Principle:

Principle #6Universality (Multi-functionality)

2Loss of energy

If integrated processing is implemented, then resource allocation is improved, but infrastructure complexity increases requiring modifications to existing systems

Engineering Contradiction:

Improvecomputation resource utilizationVSAvoidinfrastructure implementation ease

Core Design Contradiction:

Loss of energyVSEase of manufacture

Solution Approach 1:

The transaction handler acts as an intermediary component that can be inserted into the existing payment processing workflow without requiring fundamental changes to acquirer or issuer systems. It receives authorization requests from acquirers, processes offer redemptions, and forwards requests to issuers, serving as a mediator that improves resource utilization while minimizing infrastructure disruption.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The integrated processing function is segmented into distinct modules within the transaction handler: offer eligibility determination, benefit calculation, payment processing, and response generation. This segmentation allows the system to be implemented incrementally and maintains ease of infrastructure deployment by keeping each functional component independent and manageable.

Inventive Principle:

Principle #1Segmentation

3Reliability

If real-time offer redemption is implemented, then customer satisfaction is improved, but processing time requirements increase

Engineering Contradiction:

Improveoffer redemption reliabilityVSAvoidtransaction processing duration

Core Design Contradiction:

ReliabilityVSDuration of action of moving object

Solution Approach 1:

The system performs preliminary actions by pre-identifying eligible offers and calculating benefit amounts during the authorization phase before the transaction is completed. This allows offer redemptions to be processed in real-time without adding significant duration to the transaction, as the offer eligibility and benefit determination are integrated into the initial authorization request processing rather than being added as separate post-transaction steps.

Inventive Principle:

Principle #10Preliminary action

Data Source

PatentUS10339553B2Systems and methods to apply the benefit of offers via a transaction handler

Publication Date: 2019.07.02 VISA INTERNATIONAL SERVICE ASSOCIATION

AI summary

A system includes a transaction handler configured to split a transaction, initiated between an acquirer processor representing a merchant and an issuer processor representing an account holder, into separate transactions with the issuer processor and at least one sponsor processor that is configured to provide the benefit of offers to applicable transactions. A portal is configured to notify the account holder of the award/redemption of the benefit of an offer using a communication channel separate from the transaction terminal that initiates and approves the transaction between the account holder and the merchant.