API System Routing ATM Transactions Without Physical Cards

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Solution Overview

Problem

Software wallets and traditional financial institutions lack the capability to handle cash transactions, such as deposits or withdrawals, and consumers often need a way to interface between these systems and ATMs or points of sale without carrying credit or debit cards, requiring a method to route transactions securely and efficiently.

Innovation Solution

An application programming interface (API) system that routes transactions from ATMs to corresponding financial institutions to verify and execute user requests, enabling cash dispensing and depositing capabilities while being financial institution-agnostic, using unique identifiers and integrating with external APIs for validation and settlement.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If software wallets and traditional financial institutions use digital applications for transactions, then user convenience is improved, but cash transaction capability is lost

Engineering Contradiction:

Improveuser convenienceVSAvoidcash transaction capability

Core Design Contradiction:

Ease of operationVSAdaptability or versatility

Solution Approach 1:

The patent introduces an intermediary system comprising an ATM switch and API layer that mediates between software wallets/financial institutions and ATMs. This intermediary enables digital accounts to interface with physical cash handling capabilities, allowing users to deposit and withdraw cash without cards while maintaining the convenience of digital account access.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Reliability

If consumers use software wallets without cash handling capability, then digital security is improved, but physical cash access becomes difficult

Engineering Contradiction:

Improvedigital securityVSAvoidcash access

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The ATM switch and API system serve as a secure intermediary that bridges digital wallet authentication with physical cash dispensing. The system maintains digital security through API-based authentication while enabling physical cash access through ATM infrastructure, eliminating the need for consumers to carry cards.

Inventive Principle:

Principle #24Intermediary (Mediator)

3Reliability

If traditional ATMs require physical cards for transactions, then transaction security is maintained, but user convenience is reduced

Engineering Contradiction:

Improvetransaction securityVSAvoiduser convenience

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The patent replaces the mechanical card insertion system with a digital API-based authentication mechanism. Instead of requiring physical cards to be inserted into ATMs, the system uses digital identifiers and API calls to authenticate users, maintaining security through verified digital credentials while dramatically improving convenience.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

4Reliability

If financial institutions integrate directly with ATMs, then system reliability is improved, but system complexity increases

Engineering Contradiction:

Improvesystem reliabilityVSAvoidsystem complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent segments the financial system into distinct functional layers: software wallets, an ATM switch intermediary, and ATM terminals. This segmentation allows each component to specialize in specific functions, improving reliability through modular architecture while managing complexity by establishing clear interface protocols between segments.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The ATM switch acts as a centralized intermediary that simplifies the architecture by providing a single point of coordination between multiple financial institutions and ATMs. This intermediary layer handles the complexity of routing and communication, allowing individual institutions to integrate without managing the entire distributed system.

Inventive Principle:

Principle #24Intermediary (Mediator)

Data Source

PatentUS11676149B2Methods and systems for routing transactions between automated teller machines, points of sale, financial institutions, and software wallets

Publication Date: 2023.06.13 NCR ATLEOS CORP

AI summary

A system and method for routing ATM transactions. A transaction request is received at an external application programming interface (API) associated with an account holder. The external API runs on a first processor. The transaction request is validated and authorized at the external API. Information about the transaction is forwarded from the external API to an internal API associated with an automated teller machine (ATM). The internal API runs on a second processor. A unique identifier is generated for the transaction request and provided to a user. The unique identifier is received from the user at the ATM without the user presenting any card and without connecting a mobile device of the user to the ATM. The unique identifier is provided from the ATM to the internal API to confirm a validity of the transaction. The transaction is implemented at the ATM by either dispensing cash or accepting a deposit.