Aggregated Transaction Accounts for Multi-Source Credit Processing
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Solution Overview
Problem
Existing payment processing systems restrict the number of payment methods that can be used in a single transaction to a maximum of two, negatively impacting millions of consumers, particularly those with multiple cards and low credit limits.
Innovation Solution
A system that links a method of payment to an aggregated transaction account, allowing multiple funding sources to be used, with an available credit balance, to process transactions seamlessly, using specialized programming and an application server to manage and authorize requests.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Device complexity
If the system restricts the number of payment methods to a maximum of two per transaction, then system complexity is reduced, but payment versatility and consumer flexibility deteriorate
Solution Approach 1:
The patent combines multiple payment methods and funding sources into a single aggregated transaction account. The system merges credit cards, debit cards, and other transaction accounts into one unified account that can be used for payments, eliminating the need to select between multiple separate payment methods while maintaining system simplicity.
Solution Approach 2:
The aggregated transaction account serves multiple functions by accepting various funding sources (credit cards, debit cards, other accounts) and enabling different types of transactions (purchases, transfers, payments) through a single account interface, making the system universally applicable to diverse payment needs.
2Adaptability or versatility
If the system allows multiple funding sources in a single transaction, then payment versatility improves, but device complexity increases
Solution Approach 1:
Multiple funding sources are merged into a single aggregated transaction account that handles all payment operations. The system combines credit cards, debit cards, and other transaction accounts into one unified interface, reducing the complexity of managing multiple separate payment methods while maintaining versatility.
Solution Approach 2:
The aggregated transaction account acts as an intermediary layer between the consumer and multiple funding sources. This mediator account simplifies the system architecture by providing a single point of interaction while managing the complexity of multiple underlying funding sources in the background.
3Adaptability or versatility
If consumers use multiple credit cards with low credit limits, then accessibility for low-income individuals improves, but transaction success rate deteriorates due to insufficient credit availability
Solution Approach 1:
The system merges the credit limits and available balances of multiple credit cards into a single aggregated transaction account. This combination pools the total available credit across all linked cards, ensuring that consumers with multiple low-limit cards have sufficient combined credit availability to complete transactions successfully.
Solution Approach 2:
The aggregated transaction account provides universal access to combined credit resources from multiple cards, enabling consumers to make purchases that exceed the limit of any single card while maintaining accessibility for low-income individuals who rely on multiple cards.
Data Source
AI summary
System and method to process electronic financial transactions using an aggregated transaction account are described. Embodiments may include an application server configured to perform processing functions, and an updating module configured to retrieve and update the financial account data in a verified user account profile in real-time. Embodiments may also include a transaction processing module configured to receive and process authorization requests. This module may be configured to develop a payment solution for an authorization request initiated, where the method of payment is linked to its assigned aggregated transaction account with an available credit balance funded by one or more authorized funding transaction accounts according to governing policies and reference databases. System and method can be used to process card-present and non-card-present transactions, and does not place a limit on the number of acceptable methods of payment used to fund the available credit balance of the aggregated transaction account.