Code-Based Fund Disbursement via ATM Authentication

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Solution Overview

Problem

Corporate entities face difficulties in making payments to individuals without immediate access to a bank account, as conventional methods like paper checks and prepay cards pose security risks and complexity.

Innovation Solution

A method utilizing a processor to generate a single-use code for fund disbursement through a payment disbursement machine, such as an ATM, which includes authentication via image, video, or facial recognition, and allows for payment vouchers redeemable at a financial institution.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If paper checks or prepay cards are issued to unbanked payees, then payment delivery is achieved, but security risks and process complexity increase

Engineering Contradiction:

Improvepayment deliveryVSAvoidsecurity

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The patent replaces physical payment instruments (paper checks, prepay cards) with an electronic code-based system. The payor receives a unique code electronically that can be redeemed at an ATM, eliminating the need for physical document handling and reducing security risks associated with paper-based payment methods.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The patent introduces an ATM as an intermediary device between the payor and the unbanked payee. The ATM serves as a neutral platform where the payee can redeem the code for cash without requiring a bank account, while the financial institution maintains control over the transaction through code validation.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Ease of operation

If paper checks or prepay cards are issued to unbanked payees, then payment delivery is achieved, but process complexity increases

Engineering Contradiction:

Improvepayment deliveryVSAvoidprocess complexity

Core Design Contradiction:

Ease of operationVSDevice complexity

Solution Approach 1:

The patent extracts the payment delivery function from complex banking infrastructure and relocates it to a simple ATM interface. The unbanked payee only needs to interact with the ATM using a code, eliminating the need for bank accounts, physical document processing, and complex verification procedures.

Inventive Principle:

Principle #2Taking out (Extraction)

3Reliability

If authentication methods like image or facial recognition are implemented, then security is improved, but device complexity and processing requirements increase

Engineering Contradiction:

Improveauthentication securityVSAvoidprocessing requirements

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent performs authentication (image capture, facial recognition, or code verification) before the actual payment disbursement. This preliminary verification ensures security is established upfront, allowing the ATM to then dispense cash through a simple, standardized process without requiring complex authentication during the disbursement itself.

Inventive Principle:

Principle #10Preliminary action

Data Source

PatentUS11580505B2Methods for facilitating funds disbursements and devices thereof

Publication Date: 2023.02.14 JPMORGAN CHASE BANK NA

AI summary

Systems and methods for facilitating a disbursement of funds to a payee are provided. The methods include receiving a payment request from a payor; generating a code, such as barcode, a Quick Response (QR) code, a Near Field Communication (NFC) code, or a textual string, that corresponds to the received payment request; transmitting the generated code to the payee; validating the code when the code is entered into a payment disbursement machine, such as an automated teller machine; and disbursing at least one of the funds and a payment voucher via the payment disbursement machine.