KR20120014447A

KR20120014447A - Method for managing a credit card

Info

Publication number: KR20120014447A
Application number: KR1020100076519A
Authority: KR
Inventors: 마승민; 조한기
Original assignee: 마승민; 조한기
Priority date: 2010-08-09
Filing date: 2010-08-09
Publication date: 2012-02-17

Abstract

PURPOSE: A card usage payment method using a virtual card is provided to perform transaction process through a virtual card by generating card information which issues a real card. CONSTITUTION: A representative card is mapped to database through 1:N structure. The representative has representability about individual card product which a customer owns. The selected medium is designated as the representative. The real card information database is mixed with the other card product.

Description

Representative card, virtual card use or payment method {METHOD FOR MANAGING A CREDIT CARD}

The present invention relates to the invention of managing a plurality of physical cards as a virtual representative card.

A summary of the current Shinyo card card processing model is as follows.

1. The product and the physical card are matched 1: 1 and each member has more than one card.

※ If you want to use the new card product service, even if you have another product of the same company, the card product must be issued separately.

2. Due to the finiteness of service types, we provide overlapping benefits (services) for each product

3. Linear increase in operating and maintenance costs in proportion to card issuance

※ Most cards are renewed every 5 years (exceptional cases exist, renewal every 3 years, etc.)

※ As a result, the burden of new expenses (blank card procurement + card issuance + packaging + delivery) and additional expenses (expenses at the time of new issuance + other administrative expenses incurred by TM) are continuously incurred.

4. Among the plurality of cards possessed by the member, the card used for the actual purchase is limited to some cards.

※ Individual activation cards appear to be biased towards specific cards

5. There is a limit to remembering all of the benefits and merchants related to various cards, and they have the card.

6. Card processing takes place using network infrastructure that leads to merchant <-> VAN <-> card companies

※ Role of VAN (value added network)

1) Approval relay service

Provides services for relaying authorization requests and results with the network infrastructure connecting the card terminal and the network infrastructure linked with the merchant's authorized terminal and POS system when paying for cards (credit, check, debit, gift, reward card, etc.)

2) Receipt for purchase

※ After filling out the card payment details, transfer to the card company

※ The business of relaying the transferred payment details to the card company

※ How to determine the relay card company for the VAN approval request

VAN relays the transaction information to the card company through the BIN number of the individual card number among the authorizations requested by the merchant through the authorized terminal and POS system (BIN number = the first 6 digits of the 16-digit card number)

(ex) 1234-5678-9876-5432 The first 6 digits of the card number [123456] becomes the BIN number of the card

A summary (concept) of the contents to be improved by the present invention is as follows.

1. Activating credit transactions by increasing customer card usage convenience and satisfaction

-Design of tangible or intangible virtual cards representing multiple cards owned by customers (virtual card physical model: all media that can deliver a certain number system such as current plastic physical cards, mobile applets, and IC cards)

-Card product decision AI (artificial intelligence) algorithm applied when using virtual card

2. Reduce Card Processing Costs

-When issuing additional cards, only card information is generated, not the actual card issuing method, and transaction processing using virtual cards (substantial integration of card products and services through virtual cards).

3. Enhance business scalability to link with other industries

-Expansion of card number system (card number-> card number, mobile number, social security number, etc.)

N real card data (data) owned by the customer for one representative card by mapping the DB, the seal that can provide the optimal benefits to each customer through a specific algorithm when requesting approval through the representative card This is accomplished by providing a card use or payment process to select and authorize card information.

2. Reduce Card Processing Costs

3. Enhance business scalability to link with other industries

1 to 6 are conceptual diagrams and flowcharts for explaining the method of the present invention.

* KEY SOLUTION AND GLOSSARY *

1. Virtual Card

(1) Definition: A transaction medium that can be a tangible or intangible payment method representing N card information actually owned by a customer.

(2) Form: If any individual customer can be identified, any type of media can be tangible or intangible (ex) Resident ID card (resident registration number), mobile phone (cell phone number), pre-issued physical card (MS, IC, RF, etc.) (3) functions such as virtual card number that is assigned to individual customers

-As one virtual card number is mapped to N real card numbers in the DB, access to multiple real card information is possible through the virtual card.

-N actual card information is all the card information owned by the customer, and can be composed of a specific card company's products alone and a mixture of two or more card company's products

-When a transaction is conducted through a virtual card at a merchant, one actual card information is selected by a specific algorithm.

-With this configuration, the customer can use the service for the N card products he holds by holding only one virtual card (the same effect as having all N cards).

(4) Example

Logical ERD

---------------- ----------------

| | | |

| Customer Information | 1: N | Actual Card Number 1 |

| | --------------------- <| Actual Card Number 2 |

| Virtual Card Number | | |

| | | Virtual Card Number |

---------------- ----------------

-Table structure

-------------------------------

| Actual card number 1 | Virtual Card Number |

| Actual card number 2 | Virtual Card Number |

| Actual card number 3 | Virtual Card Number |

-------------------------------

2. Authorization card decision algorithm for virtual card payment

(1) Algorithm Overview

-Among the factors that can affect the selection of card products at the time of trading, the customer selects a specific item and prioritizes the selected item to determine the card product to be used for final approval.

※ Factors that may affect the selection of card products: Refer to the item on the bottom (2).

-If the priority specified by the customer does not exist or the card product selected by the specified priority does not exist, the final card product selection based on the following information (each item is added / deleted / changed according to the situation, Priorities may fluctuate)

1) Customer's consumption pattern based on past transaction information

(E.g., statistics on the approval information when a certain number of repetitive transactions have occurred in a particular industry or merchant)

2) Discount rate by card product for the transaction

(Compare after converting the amount of benefits (ex. Discount, interest, earning, cashback, etc.) to the actual customer)

3) Using statistics on approval information for each customer group according to specific conditions

(Customer classification criteria can be gender, age group, occupation group, region, etc.)

4) If there are multiple card company card products, the selection weight of each card company can be applied.

(If the result selected by the preceding conditions is competing with different card company products of the same priority, the final selection card is determined by the weight of each card company)

-If the card selected by the above algorithm does not exist, the default card specified by the customer becomes the final selection card, and if the default card is not specified, the virtual card is designated as the default card.

(2) Factors that may influence the selection of card products

-The overall items used in the card processing task can be selected for customer selection and can be categorized by category.

(ex)

1) Merchant Information

> Classification by industry, specific merchants, etc.

2) Sales Information

> Lump sum, installment, cash service, overseas sales, etc.

3) Benefit Information by Card Product

> Discounts, no interest, cashback, earn points, coupons, etc.

4) The customer can select the product unit card

(ex) When engine oil is purchased from an auto repair company, it is possible to select a card product that provides a benefit when purchasing the product.

5) Member Information

> Purpose of maintaining usage, designation of specific card, etc.

6) Trading Conditions

> Region of use (use place), duration of use, time of use, etc.

(3) Types and Methods of Application Algorithms

- Kinds

1) Customer specified algorithm

> Manual method

(The user directly judges and decides on factors that may influence the selection of card products described in item (2), and prioritizes the determined items.)

※ The manual algorithm created by the customer can be recommended to other members when it is determined that the optimal card product is selected for a certain period of time.

> Priority Referral Method

(Based on the basic information about the customer (ex. Gender, age, region, occupation), if you recommend several priority combinations that are deemed appropriate for the customer, the customer selects one of those lists.)

2) AI method

> How to select the card products that are considered optimal for customers based on the information described above (algorithm overview)

Application Method

1) If a customer-defined priority exists, the customer-specific algorithm takes precedence over AI.

2) If the priority specified by the customer does not exist, the AI method is basically applied.

(4) AI algorithm management

-AI algorithm performs management and optimization through periodic feedback based on the following items.

1) Customer satisfaction with the selected card through AI method for a certain period of time

2) For a certain number of sample transactions, the suitability of the selected card and the selected card through an arbitrarily modified algorithm (such as the match ratio of the actually selected card in the past)

(5) Final approval decision and notice

The information on the final card selected by the above-described algorithm can be notified through customer contact channels such as SMS and slips according to the customer's choice.

-The customer can request a change to the final card information selected in the transaction within the agreed period.If the customer requests a change, the authorization by the existing final card will be canceled and re-approval by the card requesting the change. .

-Request for change is possible in all customer contact channels such as homepage, call center, etc.

3. Third Party Approval

(1) Third Party Approval Relay Concept

-If the card selected by the approval card decision algorithm is a third-party product, the service relays the approval to the card company, such as VAN, through the information of the approval specialist.

(2) Approval relay method

(Legend) virtual card service provider card company-甲 card company

Credit card issuer-카드 Card company

-Direct transmission method through partnership with other card companies

* Transaction Sequence: Merchant-> VAN-> 甲 Card Company-> 乙 Card Company-> 甲 Card Company-> VAN-> Merchant

* Transaction details: Receive the response by directly communicating with the issuing card company of the approved card product after changing the approval text

-Relay transmission method through VAN module

* Transaction sequence: Merchant-> VAN-> 甲 Card company / VAN module (internal module)-> 乙 Card company-甲 Card company / VAN module (internal module) VAN-> VAN-Merchant

* Transaction details: Send the full text through the VAN module that has built the changed approval text and receive a response from the credit card issuer.

(3) Exceptions to the rejection of the approval of the best product;

-If the approval on the selected card is finally rejected, request the approval of the transaction through the customer's designated basic or virtual card (concept of temporary approval).

-The customer shall be notified of the reasons and details of the rejection of the authorization, and the customer may request reauthorization through another card within the agreed period.

la. Card Processing Flow using Virtual Card

-See attached drawings

Claims

The representative card refers to a tangible or intangible transaction medium having specific information for transaction such as card information and a unique key value for distinguishing individual customers. These representative cards are represented in the database with N actual card information (data) owned by the customer and the structure of 1: N, thereby representing the individual card products owned by the customer.

In the claim 1, the representative card is a representative card by issuing a new medium such as a mobile card, a mobile number card, a social security number card, or a medium that has the same representativeness among existing media such as a specific credit card. Can be specified. In addition, the representative card information (data) and the mapped actual card information DB can be composed of its own card products alone or a mixture of its own card products and other card company card products.

Recognition method through the representative card, the existing credit card authorization method and the Key-In / IC approval method according to the new number system, etc., this authorization method is the identification number system of the representative card (ex. 現 card number, etc.) Will depend on.

When requesting the approval through the representative card, it provides the best benefit to the customer by using the contents necessary for general approval (achievement information, limit information, product information, etc.), priority of the card products by the customer's request, and a specific card selection algorithm. You will be able to choose a card product.

Regarding claim 4, the customer may use the information of the card product by using information such as a specific card / merchant / business type / benefit type (discount, earning, interest-free, etc.) / type of sales (new edition, installment, cash, overseas, etc.) You can assign a rank. The card selection algorithm based on artificial intelligence (AI) can also utilize the above information, and the customer can additionally prioritize his or her AI selection. These customer choices can be made across all contact channels, including ARS, WEB, and customer visits.

The method according to claim 5, wherein if the selected actual card product is the service provider's own card product, the benefit for the product is applied and processed according to the existing approval process. In this case, a relay method is used to transmit and process approval information directly or indirectly to the service provider.

For claim 6, the relaying scheme is changed according to the location of the service provider providing the above service. If a particular card company currently provides a service directly, there are two ways.
First, after transmitting the approval information to the VAN company that the request is uploaded, and transmits the approval information from the VAN company to another card company.
The response is received by the VAN company, and sent to the merchant.
In the second method, the authorization information is transmitted through the direct communication between the two card companies and the response is not communicated with the VAN company.
If the service provider is a separate provider other than the card company, the authorization information from the VAN is processed through the logic described above.
After routing the authorization information to each card company according to the selected card product, it receives a response to the information and processes subsequent processes.

After the internal process of approval is completed, basic authorization information and information on the actual card products approved are notified to the customer via a single or mixed channel such as web, SMS / LMS / MMS. After the information is notified, the customer can change the approved card products until the time of purchase (about 1 ~ 2 days), and if the card product change by the customer occurs, the approval process will proceed again. .