Bill Payment Platform Real-Time Settlement via Card Network
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Solution Overview
Problem
Current electronic bill payment systems are inefficient for small businesses, as they typically rely on ACH or wire transfers, which are slow and cumbersome, and do not support real-time payment processing, limiting their ability to receive electronic payments.
Innovation Solution
Implementing a system that allows small businesses to register for a special payment transaction option using a payment card network, enabling real-time payments directly to their payment card accounts through a unique Biller ID, facilitating faster and more efficient payment processing.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If electronic bill payment systems use ACH or wire transfers, then businesses can receive electronic payments, but the payment processing is slow and cumbersome
Solution Approach 1:
The patent changes the payment processing parameter from traditional ACH/wire transfer networks to payment card network infrastructure, enabling real-time processing. By registering businesses with payment card networks and using unique biller identifiers, the system transforms slow batch processing into real-time transaction processing while maintaining ease of operation through automated systems.
Solution Approach 2:
The patent introduces an intermediary layer between customers and businesses - a payment processing system that uses payment card network infrastructure. This intermediary handles the real-time processing, matching payments to businesses using unique biller identifiers, and managing the settlement process, thereby resolving the contradiction between speed and operational complexity.
2Productivity
If businesses use traditional payment methods, then they can receive payments, but manual reconciliation is required which reduces efficiency
Solution Approach 1:
The patent implements self-service automation where the payment system automatically performs invoice matching, payment reconciliation, and settlement allocation. The system uses unique biller identifiers to automatically match incoming payments with corresponding invoices, eliminating manual reconciliation efforts and significantly improving operational efficiency through high-level automation.
Solution Approach 2:
The patent establishes automated feedback loops where payment information is immediately processed, matched against outstanding invoices, and reconciled automatically. The system provides real-time feedback on payment status, matching results, and settlement information, eliminating the need for manual follow-up and reconciliation processes.
3Loss of time
If real-time payment processing is implemented, then cash flow improves, but system complexity increases
Solution Approach 1:
The patent leverages the universal payment card network infrastructure to achieve real-time processing without building a completely new system. By utilizing existing payment card network capabilities and adding unique biller identifier functionality, the system achieves real-time payment receipt while minimizing complexity through multi-functionality - using established networks for authentication, routing, and settlement.
Data Source
AI summary
Registration information is obtained for a plurality of businesses, including the business name and a payment card account number for a payment card account in which the given business can receive payments from customers via a special payment transaction over a payment card network. An electronic bill payment system instruction including at least an amount and a unique biller identifier is obtained. A biller directory, including the registration information and the unique biller identifiers, is accessed based on the unique biller identifiers in the instruction, to retrieve the payment card account number. A payment is initiated to the business via the special payment transaction over the payment card network, based on the retrieved payment card account number.