Travel Identifier System for Reducing Payment Declines
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Solution Overview
Problem
Current systems face challenges in reducing unnecessary travel-related payment declines due to the complexity of coordinating travel information with issuers, leading to fraudulent transaction issues, as cardholders often fail to notify issuers of their travel plans, especially while abroad.
Innovation Solution
A travel identifier (TI) computing system that receives transaction data, identifies travel-related information, and builds a data table to store itinerary details, allowing for automatic authentication of current transactions against the stored data to reduce false declines by matching transaction locations and dates with planned travel schedules.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If cardholders manually notify issuers of travel dates and locations, then fraud detection accuracy improves, but coordination complexity and likelihood of notification failure increase
Solution Approach 1:
The system automatically identifies travel-related transactions and populates the travel notification data structure without requiring cardholder intervention. The cardholder's spending patterns are monitored and travel activities are detected autonomously by the issuer's system, eliminating the manual coordination step while maintaining accurate travel information for fraud detection decisions.
Solution Approach 2:
The system proactively identifies travel transactions and populates travel notification data before fraud detection is needed. By continuously monitoring transactions and pre-populating the travel data structure with upcoming travel information, the system ensures accurate fraud detection decisions are available when needed without last-minute coordination.
2Reliability
If manual travel notification is required, then fraud detection can be performed, but transaction processing time increases due to additional verification steps
Solution Approach 1:
The system continuously monitors transactions and pre-populates the travel notification data structure with travel dates, locations, and merchant information before authorization is needed. This preliminary population of travel data eliminates the need for time-consuming manual notification steps during the authorization process, reducing transaction processing time while maintaining fraud detection capability.
3Ease of operation
If travel information is not automatically tracked, then system simplicity is maintained, but false declines increase due to lack of travel context
Solution Approach 1:
The system automatically detects travel-related transactions by monitoring spending patterns and autonomously populates the travel notification data structure without requiring cardholder action. This self-service approach maintains system simplicity from the user perspective while simultaneously reducing false declines by providing accurate travel context to the fraud detection system.
Solution Approach 2:
The system proactively identifies and records travel transactions by monitoring spending patterns and pre-populating travel information in the data structure before authorization decisions are made. This preliminary tracking of travel information provides the necessary context for accurate fraud detection while maintaining operational simplicity.
Data Source
AI summary
A system for building a data table of travel-related data and using the data table to reduce false declines when processing payment transactions is provided. The system includes a travel identifier (TI) computing device configured to receive transaction data that includes travel-related data and cardholder identifiers, the transaction data associated with transactions initiated by a cardholder, identify the travel-related data for the cardholder, and build a data table for storing one or more records within an itinerary data source using the travel-related data. The TI computing device is also configured to receive current transaction data for a current transaction initiated by the cardholder including a current transaction location and a current transaction date. The TI computing device is further configured to authenticate the current transaction data by electronically matching the current transaction location and the current transaction data to the data table stored in the itinerary data source.