Balance-Verified ACH Identifier for POS Transaction Credibility
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Solution Overview
Problem
ACH transactions at point-of-sale (POS) lack credibility for merchants, exposing them to risks of failed transactions due to uncertain fund availability and network irregularities, and are more costly than credit and debit card transactions while offering fewer services and protections.
Innovation Solution
A balance-verified ACH identifier system that retrieves and displays financial information from a Demand Deposit Account (DDA) to determine the authenticity of a purchase, providing a credibility score and auth-process determination indicator for POS operators, reducing merchant exposure to fund availability issues and network uncertainties.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of manufacture
If ACH transactions are used at POS, then transaction cost is reduced, but transaction credibility and fund availability certainty deteriorate
Solution Approach 1:
The system performs preliminary verification of customer fund availability and account status before the transaction is authorized. The POS system checks the customer's ACH account balance and status in advance, allowing the merchant to make an informed decision about whether to proceed with the transaction, thereby resolving the contradiction between low cost and high reliability
2Ease of manufacture
If ACH transactions are used at POS, then transaction cost is reduced, but merchant protection and services deteriorate
Solution Approach 1:
The system provides real-time feedback to the merchant about the customer's account status, available balance, and potential transaction issues before the transaction is completed. This feedback mechanism allows the merchant to assess the risk and make informed decisions, reducing harmful factors while maintaining low transaction costs
3Reliability
If real-time fund verification is implemented, then transaction credibility is improved, but system complexity and processing time increase
Solution Approach 1:
The system introduces an intermediary verification layer between the customer and the transaction processing system. This intermediary component handles the complex fund verification tasks, providing simplified interfaces for both the customer and merchant while maintaining high reliability through centralized verification logic
4Ease of operation
If real-time financial data retrieval is performed, then auth-decision making capability is improved, but processing time and network dependency increase
Solution Approach 1:
The system performs preliminary retrieval and caching of financial data during off-peak times or in advance, so that when a transaction occurs, the data is already available for quick processing. This preliminary action reduces processing time while maintaining the ability to make informed auth-decisions
Data Source
AI summary
An apparatus for forming an auth-process determination for a point of sale (“POS”)—purchase executed using a balance-verified transaction identifier is provided. The transaction identifier may include identifier information configured as a pointer to a DDA account. A receiver may be configured to receive the balance-verified transaction identifier information and purchase information. The apparatus may retrieve DDA account information using previously-entered DDA account access information. The apparatus may calculate an auth-process determination based on the DDA account information and the purchase information. The apparatus may store, in real time, an auth-process determination indicator in the memory at the POS. The auth-process determination indicator corresponding to the auth-process determination. The apparatus may also cause to display the auth-process determination indicator on a POS screen. The apparatus may mirror the display of the auth-process determination indicator on a screen associated with the balance-verified transaction identifier.