Credit Card Transfer Clearing With Staged Fraud Verification
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Solution Overview
Problem
Financial service providers lack a secure system for transferring funds directly between credit card accounts, exposing users to fraud risks and limiting transaction control.
Innovation Solution
A system comprising a general ledger, staging element, institution account, and clearing house, facilitated by a processor, to manage and validate credit card to credit card transactions, ensuring secure fund transfers and real-time verification.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If online money transfer services are used to transfer funds between credit card accounts, then funds can be transferred between accounts, but the system exposes linked cards to potential fraud risk due to lack of security regarding stored account information
Solution Approach 1:
The patent introduces a staging element as an intermediary component between the sending and receiving credit card accounts. This staging element temporarily holds funds during the transfer process and implements security measures such as requiring user verification before releasing funds to the destination account. This intermediary approach allows fund transfer functionality while mitigating fraud risks through controlled, verified transactions rather than direct exposure of account information.
2Adaptability or versatility
If online money transfer services are used, then funds can be transferred between accounts, but the service presents limitations such as not allowing a user to review or cancel a transaction once initiated
Solution Approach 1:
The patent implements preliminary user verification actions before the transaction is finalized. The staging element requires users to verify transaction details and provide authentication before funds are released to the receiving account. This preliminary verification step gives users the opportunity to review and cancel transactions before they are completed, addressing the limitation of existing services where transactions cannot be reviewed or cancelled once initiated.
3Reliability
If a direct transfer system between credit card accounts is implemented, then secure payments can be made with enhanced user control, but the system complexity increases due to multiple components required for validation and verification
Solution Approach 1:
The patent segments the fund transfer system into distinct functional components: a general ledger for recording transactions, a staging element for temporary fund holding and verification, an institution account for processing, and a clearing house for final transfer. This segmentation allows each component to perform its specific function with dedicated security measures, achieving reliable transactions while managing system complexity through modular architecture rather than monolithic design.
Data Source
AI summary
A system and method for making credit card to credit card payments. The system may include a processor, a network, a general ledger, a staging element with reconcilement capabilities, an institution account, and a clearing house account. The system may complete a credit card to credit card transaction by utilizing the credit available in a credit card account to reimburse funds utilized through the institution account. The clearing house ensures the transaction is satisfied by both the institution account and the credit card account. The operations may include providing an interface; using generative artificial intelligence to generate a prompt specific to an account associated with the interface; and displaying the prompt to a user of the account.