Barcode Funds Transfer via Intermediary Decoding
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Solution Overview
Problem
Current systems for online electronic direct funds transfer lack entity control over personal financial information, leading to inefficiencies and a lack of streamlined communication between entities during transactions, relegating the experience to outdated methods.
Innovation Solution
A system and method utilizing optical machine readable images, such as barcodes, to encode and decode financial information for funds transfer requests, allowing secure and efficient processing between entities without exposing sensitive information directly to each other.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If barcodes are used to encode financial information for funds transfer, then transaction efficiency and entity control are improved, but system complexity increases
Solution Approach 1:
The patent introduces a transaction service as an intermediary that receives barcode information from a first entity, decodes it, validates transaction details, and communicates with a second entity. This intermediary handles the complex decoding and validation processes, allowing the entities to maintain simplicity while benefiting from efficient barcode-based transactions.
Solution Approach 2:
The system divides the funds transfer process into distinct segments: barcode encoding by the first entity, information decoding and validation by the transaction service, and transaction execution by the transaction processing system. This segmentation allows each component to be optimized independently, improving overall efficiency without requiring each entity to manage full system complexity.
2Speed
If personal financial information is encoded in barcodes for direct transfer, then transaction speed increases, but security risks increase
Solution Approach 1:
The transaction service acts as a secure intermediary that receives barcode information containing financial data, decodes it in a controlled environment, validates the information against security protocols, and then communicates with the transaction processing system. This intermediary layer prevents direct exposure of sensitive financial information between entities while maintaining fast transaction processing.
Solution Approach 2:
The patent extracts and separates sensitive financial information from the barcode decoding process. The transaction service extracts only the necessary transaction details from the barcode, validates them independently, and then proceeds with the transfer, preventing direct handling of sensitive data by the entities involved and reducing security risks.
3Reliability
If more entity control is implemented in funds transfer, then information security improves, but transaction time increases
Solution Approach 1:
The first entity performs preliminary action by encoding all necessary transaction information (amount, account details, recipient information) into the barcode before initiating the transfer. The transaction service then decodes and validates this pre-prepared information, reducing the time needed for subsequent verification steps while maintaining strong security controls.
Solution Approach 2:
The system maintains continuous useful action by having the transaction service continuously validate and process the barcode information without interruption. The decoding, validation, and communication steps occur in a continuous flow rather than discrete phases, minimizing idle time while ensuring thorough security verification at each stage.
Data Source
AI summary
A system and method for coordinating processing of a funds transfer transaction between a transaction requestor and a transaction responder over a communications network. The transaction system comprises receiving a funds amount, requestor identification information, and responder identification information, such that at least one of the funds amount, the requestor identification information, or the responder identification information is encoded in symbology information embodied in a barcode. The system also decodes the symbology information into unencoded information using a coding scheme of the barcode and generates a funds transfer request for the funds transfer transaction, such that the funds transfer request has content including the unencoded information decoded from the symbology information. The system also sends the funds transfer request to a transaction processing system for subsequent settlement, as well as receives transaction confirmation messages.