Automated Bill Payment Assignment via Electronic Settlement Advice
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Solution Overview
Problem
Current methods for bill payment and presentment are inefficient, requiring customers to manually create and send advice of settlement, which can lead to errors and increased workload for both customers and billers, especially when multiple bills are paid in a single transaction, causing complex queries and erroneous bookings.
Innovation Solution
A computer system and method that allows customers to select bills for payment on a computer network, generating an electronic advice of settlement with an ID, which is then presented to the biller or payment service provider, automating the assignment of payments to specific bills and reducing the need for manual processing.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If customers manually create and send advice of settlement for bill payments, then payment assignment can be tracked, but workload and error risk increase significantly
Solution Approach 1:
The system enables self-service by automatically generating advice of settlement documents and payment assignments without requiring manual customer intervention. The software application autonomously creates settlement advice, assigns payments to bills, and manages the entire process, eliminating the need for customers to manually create and track payment assignments.
Solution Approach 2:
The patent replaces manual mechanical processes with automated software systems. Instead of customers physically creating and mailing advice of settlement documents, the system uses computer-generated electronic documents and automated software algorithms to perform payment assignment, eliminating manual paperwork and reducing errors.
2Reliability
If advice of settlement is sent as hard copy with mail, then formal record is created, but delivery time and addressing accuracy deteriorate
Solution Approach 1:
The system creates electronic copies of advice of settlement documents that have the same legal and operational validity as hard copies. Instead of mailing physical documents, the software generates and transmits electronic versions through computer networks, maintaining record validity while eliminating mailing delays and addressing errors.
Solution Approach 2:
The patent replaces the mechanical mailing system with electronic transmission. Advice of settlement documents are sent through computer networks and software systems rather than physical mail, eliminating the time loss associated with postal delivery while maintaining formal record creation.
3Productivity
If multiple bills are paid in a single payment, then processing efficiency improves, but bill identification becomes complex and error-prone
Solution Approach 1:
The system segments the payment assignment process into distinct automated steps. When multiple bills are paid in a single transaction, the software automatically divides the total payment amount and assigns specific portions to individual bills using algorithmic logic, eliminating the complexity of manual segmentation while maintaining processing efficiency.
Solution Approach 2:
The patent implements feedback mechanisms where the software automatically tracks and records payment assignments across multiple bills. The system provides real-time feedback on payment distribution, generates settlement advice showing the breakdown, and allows for automated correction if assignment errors occur, reducing complexity through systematic monitoring.
4Speed
If advice of settlement is created electronically, then processing speed increases, but system integration and data entry requirements increase
Solution Approach 1:
The patent merges the advice of settlement creation function with the existing billing and payment processing software. Instead of requiring separate electronic document creation systems, the settlement advice generation is integrated into the same software application that manages bills and payments, increasing speed while avoiding additional system integration complexity.
Data Source
AI summary
Methods and systems are provided for processing one or more bills of a biller.Methods and systems may present a request to pay one or more of a set of one or more bills in total or in part on a site of a computer network,A selection of the one or more bills from a customer may be received, said selection responding to said request via said site.Method and system may generate an electronic advice of settlement of the selected bills comprising an ID, andpresent the electronic advice of settlement and/or the ID to the customer or to a payment service provider.