By-item bill payment system with segmented invoice processing
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Solution Overview
Problem
Current electronic bill payment systems lack the ability to offer different payment terms for individual items on an invoice, limiting billers' incentives to sell certain goods or services and providing payors with limited payment options.
Innovation Solution
A by-item bill payment system that allows billers to enroll in a program enabling them to assign different payment terms to various items on an invoice, modifying invoices to reflect these terms and allocating payments accordingly, using a platform that integrates with existing bill presentment and payment systems.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If a traditional bill payment system is used, then the system structure remains simple, but the ability to offer different payment terms for different items is lost
Solution Approach 1:
The patent segments the invoice into multiple charge items, each capable of having different payment terms assigned. The system processes each charge separately according to its specific payment terms, enabling flexible payment options while maintaining a relatively simple overall system architecture through modular processing.
Solution Approach 2:
The patent introduces a payment allocation mechanism that acts as an intermediary between the payment received and the individual charges. This intermediary component automatically allocates payments to different charges based on their respective payment terms, enabling complex payment term management without requiring complex user interface or processing logic.
2Adaptability or versatility
If different payment terms are offered for different items, then biller incentives are improved, but the ease of operation for payors is reduced
Solution Approach 1:
The system performs self-service by automatically allocating the payment received to different charges based on their payment terms. The payment allocation mechanism operates autonomously without requiring manual intervention or complex user input, thereby maintaining ease of operation while providing multiple payment options.
Solution Approach 2:
The patent changes the parameter of payment terms from a uniform single term to multiple variable terms applied to different charges. The system handles these varying parameters through automated allocation logic, allowing payors to benefit from flexible payment options without experiencing increased operational complexity.
3Adaptability or versatility
If the biller's core systems are modified to support by-item payment terms, then payment flexibility is achieved, but the reliability of existing systems is compromised
Solution Approach 1:
The patent introduces a payment allocation module that serves as an intermediary layer between the biller's core systems and the by-item payment processing. This intermediary component handles the complexity of multiple payment terms without requiring modifications to the biller's core systems, thereby maintaining system reliability while achieving payment flexibility.
Solution Approach 2:
The patent segments the payment processing function from the core billing system. By implementing by-item payment terms as a separate processing layer that operates independently of the core systems, the patent enables payment flexibility without compromising the stability and reliability of the existing core billing infrastructure.
Data Source
AI summary
A plurality of billers are enrolled in a by-item bill payment program. An invoice is obtained from a given one of said billers, including multiple charges corresponding to at least one of goods and services purchased from the given one of said billers by a first payor. The invoice is modified, based at least in part on said enrolling step, to generate at least one modified invoice including multiple charges corresponding to at least one of goods and services purchased from the given one of said billers by said first payor, the multiple charges being handled under different payment terms. The at least one modified invoice is sent to said first payor; payment from said first payor is obtained; and the obtained payment is allocated. A specific exemplary software architecture for implementing the method is also disclosed.