Transaction Score Device for Automated Financial Authorization
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Solution Overview
Problem
Current financial transaction processing systems face challenges in efficiently determining the legitimacy of transactions, leading to increased cardholder inconvenience and potential fraud, as they require manual confirmation of potentially fraudulent transactions, which is time-consuming and prone to errors.
Innovation Solution
A method and system that automatically confirm financial transactions by analyzing parameters associated with cardholder accounts, using a transaction score device to update parameters based on previous transaction factors, allowing for automated approval or decline of subsequent transactions without requiring cardholder verification.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If manual confirmation is required for each financial transaction, then security against fraudulent transactions is improved, but cardholder convenience and transaction processing speed deteriorate
Solution Approach 1:
The system performs self-service by automatically analyzing transaction parameters, comparing them against stored patterns, and making authorization decisions without requiring cardholder intervention. The cardholder account data structure enables the system to autonomously determine transaction legitimacy based on predefined parameters such as transaction amount, location, and merchant category.
Solution Approach 2:
The system implements feedback by storing outcomes of previous transaction analyses and using them to refine future decisions. The cardholder account data structure is updated with new transaction information, creating a feedback loop that continuously improves the system's ability to distinguish legitimate from fraudulent transactions while maintaining security.
2Reliability
If manual confirmation is required for each financial transaction, then fraud detection capability is improved, but transaction processing time increases
Solution Approach 1:
The system performs preliminary action by pre-establishing a comprehensive cardholder account data structure containing multiple parameters (transaction amount, location, merchant category, time) that enable rapid fraud detection. This pre-configured structure allows the system to immediately evaluate incoming transactions against established criteria without requiring manual review, thus maintaining high fraud detection capability while minimizing processing time.
Solution Approach 2:
The system applies parameter changes by dynamically evaluating multiple transaction parameters simultaneously and adjusting the authorization decision based on their combined analysis. The cardholder account data structure stores and processes various parameters (amount, location, merchant type, time) that are continuously updated and compared, enabling fast automated decisions that maintain security without increasing processing time.
3Productivity
If automated parameter-based analysis is used, then transaction processing speed is improved, but the complexity of the authorization system increases
Solution Approach 1:
The system applies segmentation by dividing the fraud detection task into distinct parameter categories (transaction amount, location, merchant category, time) that are stored in a structured data format. Each parameter is independently tracked and evaluated, allowing the system to process transactions quickly through modular comparison operations while maintaining manageable system complexity through organized data structures.
Solution Approach 2:
The cardholder account data structure serves multiple functions simultaneously: it stores cardholder information, tracks transaction history, maintains authorization criteria, and provides the basis for automated decision-making. This multi-functional design enables the system to achieve high processing speed through a single unified data structure rather than requiring separate complex systems for each function.
Data Source
AI summary
Examples of the disclosure enable a financial transaction to be automatically confirmed based on a similarity of factors between financial transactions. A previous case action may be used for a decision of confirming a financial transaction. A first request for authorization of a first financial transaction is received from a financial transaction processing computing device. One or more parameters associated with a cardholder account are identified, and it is determined, at a transaction score device, whether to approve the first request for authorization based on the one or more identified parameters. On condition that the first request for authorization is approved, the one or more parameters are updated based on one or more first factors associated with the first financial transaction such that a second request for authorization of a second financial transaction is analyzable based on the one or more updated parameters.