Automated Transaction Processing System for B2B Payment Compliance

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Solution Overview

Problem

Manual examination of sales agreements in business-to-business transactions is tedious, time-consuming, and prone to errors, and existing systems lack automation for storing and applying terms and conditions across multiple agreements.

Innovation Solution

A transaction processing system that interacts with buyers, sellers, issuers, and acquirers to automate the application of pre-negotiated terms and conditions, creating payment instructions, calculating fees, and facilitating payment authorization and settlement, using interfaces and modules to manage accounts and process invoices.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If manual examination of sales agreement terms and conditions is used, then flexibility in reviewing individual transactions is maintained, but the process becomes tedious, time-consuming and prone to errors

Engineering Contradiction:

Improveaccuracy of transaction complianceVSAvoidtime required for manual review

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The patent replaces manual mechanical review processes with an automated computer system that electronically stores, retrieves, and applies sales agreement terms and conditions to transactions. The system automatically examines invoice data against stored contract terms, eliminating the need for manual document review while maintaining compliance accuracy.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The system enables self-service automation where the computer system independently performs the review process. The automated system stores transaction data and contract terms in databases, automatically matches them according to predefined criteria, and generates compliance determinations without requiring continuous human intervention for each transaction review.

Inventive Principle:

Principle #25Self-service

2Adaptability or versatility

If multiple sales agreements are maintained manually, then comprehensive contract coverage is achieved, but the complexity of determining which agreement applies to each transaction increases

Engineering Contradiction:

Improvecoverage of multiple sales agreementsVSAvoidcomplexity of agreement selection process

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent creates a universal database structure that stores multiple sales agreements and their terms in a centralized computer system. The system is designed to handle various types of contracts and automatically determines applicability based on transaction characteristics, making the system adaptable to multiple agreement types without increasing operational complexity.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The manual process of reviewing and selecting among multiple sales agreements is replaced by automated computer processing. The system electronically stores contract data, automatically retrieves relevant agreements based on transaction parameters, and applies the appropriate terms without manual intervention, thereby reducing complexity while maintaining comprehensive coverage.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Productivity

If automated system is implemented to store and apply terms and conditions, then efficiency and error reduction are improved, but system complexity increases

Engineering Contradiction:

Improvetransaction processing efficiencyVSAvoidcomplexity of automated system

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The patent segments the automated system into distinct functional modules: a database for storing transaction data and contract terms, a processing unit for matching and applying terms, and an output mechanism for generating compliance determinations. This segmentation allows each component to perform its specific function independently, making the overall complex system more manageable and easier to implement.

Inventive Principle:

Principle #1Segmentation

Data Source

PatentUS7822679B1Method and system for conducting a commercial transaction between a buyer and a seller

Publication Date: 2010.10.26 VISA INTERNATIONAL SERVICE ASSOCIATION

AI summary

A system for conducting a commercial transaction between a buyer and a seller is disclosed. The system includes a transaction processing system for facilitating payment for a transaction between the buyer and the seller. In addition to the buyer and the seller, the transaction processing system also interacts with an issuer and an acquirer. An electronic invoice relating to the transaction is first posted to the system by the seller or another system. Upon accepting the electronic invoice, the system creates a payment instruction. Each time a payment instruction is created, the system applies certain pre-negotiated payment terms and conditions between the buyer and the seller to the payment instruction. After the payment instruction is created, the system seeks approval from the buyer. Upon approval of the payment instruction by the buyer, the system schedules the payment for the specified date in the payment instruction.