# How Visa Processes Targeted Discounts on Specific Items During Checkout > A system for payment networks to automatically apply discounts to specific categories of items within a single transaction while correctly calculating taxes. - **Patent:** US 10163106 - **Original title:** Systems and methods using a data structure summarizing item information in authorization request messages for communication in transactions involving multiple items - **Owner:** Visa International Service Association - **Granted:** 2018 - **Status:** Active - **Times cited:** 1 - **Field:** finance, ecommerce, telecommunications ## What it does This patent describes a way for a payment processor to handle complex transactions where a customer buys items from different tax or discount categories at once. The system receives a message from a merchant that breaks down the total purchase into sub-amounts based on item categories and their specific tax rates. The processor then checks its internal database to see if any of those categories qualify for a discount. If they do, it calculates a new, reduced total transaction amount—while keeping the tax math accurate—and sends this updated amount to the bank for final approval. ## What it does NOT cover - Does not cover simple discounts applied to the entire transaction total regardless of item category. - Does not cover manual discount processing that happens at the point-of-sale terminal before the authorization request is sent. - Does not cover systems that do not aggregate items by category code or tax rate in the authorization message. ## The clever bit The innovation is moving the discount calculation from the merchant's register to the payment network's transaction handler, using a specific data structure that maps category codes to sub-amounts and tax rates. ## Real-world examples 1. Digital coupon programs linked to credit card accounts 2. Automated loyalty rewards applied at the payment network level 3. Retailers using category-specific tax and discount logic ## Why it matters In modern retail, merchants often offer targeted discounts (like 10% off groceries but not electronics). This patent provides a technical framework for payment networks to apply these discounts mid-transaction without breaking the tax calculation or the bank's authorization process. It ensures that the final amount the bank approves is accurate, preventing payment failures or incorrect tax reporting. ## Frequently asked questions ### What does How Visa Processes Targeted Discounts on Specific Items During Checkout cover? A system for payment networks to automatically apply discounts to specific categories of items within a single transaction while correctly calculating taxes. ### Who owns patent US 10163106? Visa International Service Association owns this patent, granted in 2018. ### When does this patent expire? This patent is expected to expire on December 25, 2038, when the invention enters the public domain. ### What is patent US 10163106 cited by? This patent has been cited by 1 later patents that build on its ideas. ### What problem does this patent solve? In modern retail, merchants often offer targeted discounts (like 10% off groceries but not electronics). This patent provides a technical framework for payment networks to apply these discounts mid-transaction without breaking the tax calculation or the bank's authorization process. It ensures that the final amount the bank approves is accurate, preventing payment failures or incorrect tax reporting. ### What does this patent NOT cover? Does not cover simple discounts applied to the entire transaction total regardless of item category. **Full plain-English explainer:** https://patentbrief.org/patent/us/10163106/stripe-radar **Original patent:** https://patents.google.com/patent/US10163106 --- _Source: PatentBrief — https://patentbrief.org. Patent facts are from public records; the plain-English explanation is PatentBrief's._ ## Related patents Semantically similar inventions in the PatentBrief corpus: - [How a Single Card Can Pay for Transit Using Loyalty Points](https://patentbrief.org/patent/us/10176475/square-point-of-sale) — A system that lets one payment card handle both retail shopping and transit fares, automatically converting loyalty points between different geographic regions to cover travel costs. - [How to Aggregate Transaction Notifications Using Secure Tokens](https://patentbrief.org/patent/us/10152712/stripe-payment-processing-api) — A method for a central server to collect and organize event notifications from different merchants using unique, secure tokens that prove the user's identity without sharing sensitive account details. - [How Digital Wallets Pull Data From Multiple Sources for Payments](https://patentbrief.org/patent/us/12100000/starship-mars-edl) — A system that lets a digital wallet gather and combine account information from different companies to help a user complete a payment transaction. - [How American Express Tracks Your Spending Habits Across Different Stores](https://patentbrief.org/patent/us/7672870/amazon-prime) — A system that links store-specific product codes to universal manufacturer codes to help consumers track their spending and stay within personal budgets. - [How a Centralized Broker Handles Online Shopping Transactions](https://patentbrief.org/patent/us/7865399/distributed-electronic-commerce-system-with-centralized-point-of-purchase) — A system where a third-party broker handles payments and shipping logistics for online merchants, allowing customers to checkout without entering payment details on every individual site.