Aggregate Payment Medium for Optimal Transaction Selection
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Solution Overview
Problem
The complexity of payment media rules, which vary between different payment methods and change over time, makes it challenging for users to select the most cost-effective and beneficial payment medium for transactions.
Innovation Solution
A method and system for using an aggregate payment medium that obtains payee and transaction data, determines benefits and costs associated with multiple payment media, and selects the payment medium with the highest return to execute transactions efficiently.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If users manually evaluate multiple payment media rules to select the optimal payment method, then they can maximize transaction benefit and minimize cost, but the complexity and time required for decision-making increases significantly
Solution Approach 1:
The patent introduces an intermediary system (payment media aggregation system) that automatically evaluates multiple payment media rules and selects the optimal payment method. This intermediary handles the complexity of comparing numerous payment rules, transaction conditions, and cost-benefit analyses, while the user simply interacts with a unified payment interface. The system mediates between the user's payment needs and the complex underlying payment media rules.
Solution Approach 2:
The system performs self-service by automatically evaluating payment media rules, calculating costs and benefits, and selecting the optimal payment method without requiring user intervention in the complex decision-making process. The aggregation system autonomously manages the payment selection based on pre-configured rules and real-time transaction data.
2Adaptability or versatility
If users manually track and update payment media rules, then they can adapt to changing transaction conditions, but the time and effort required for maintenance increases
Solution Approach 1:
The system performs preliminary actions by pre-configuring and storing multiple payment media rules in the aggregation system before transactions occur. These rules including cost structures, benefit parameters, and transaction conditions are prepared in advance, allowing the system to quickly evaluate and adapt to changing transaction conditions without requiring real-time user input or manual updates.
Solution Approach 2:
The system implements feedback mechanisms that automatically monitor changes in payment media rules and transaction conditions. When rules change, the system receives feedback, re-evaluates the stored payment media configurations, and automatically updates its selection criteria. This continuous feedback loop ensures the system remains adapted to changing conditions without user intervention.
3Ease of operation
If an aggregate payment medium automatically selects the optimal payment method, then transaction processing is simplified, but the system complexity for evaluating multiple payment media increases
Solution Approach 1:
The patent applies segmentation by dividing the complex payment selection task into distinct functional modules within the aggregation system: rule evaluation modules for each payment medium, cost calculation modules, benefit analysis modules, and a selection module. This segmentation allows the system to handle complexity internally through organized, modular processing while presenting a simple unified interface to users.
Solution Approach 2:
The aggregate payment medium serves as a universal interface that can handle multiple different payment media types through a single unified system. The aggregation system is designed with multi-functionality to evaluate various payment media (credit cards, debit cards, digital wallets, etc.) using common evaluation criteria, thereby simplifying user interaction while managing internal complexity through a versatile platform.
Data Source
AI summary
A method for performing transactions using an aggregate payment medium involves obtaining payee data associated with a payee, obtaining transaction data associated with a transaction to be performed between a payer and the payee, and determining, for each payment medium, a benefit and a cost associated with using the payment medium for the transaction. The method further includes obtaining, for each of the payment media, a return from using the payment medium for the transaction, based on the benefit and the cost, selecting, from the payment media, a payment medium with a highest return, and providing, by the aggregate payment medium, payment medium data associated with the selected payment medium to the payee to enable execution of the transaction.