Electronic Billing System with Check-Based Account Onboarding
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Solution Overview
Problem
Small and medium-sized enterprises (SMEs) face challenges in adopting electronic systems for processing invoices and money transfers due to high costs and the lack of a standardized transaction system, making it inefficient for them to share costs with other businesses, and traditional payment methods require exposing bank account information.
Innovation Solution
A computer-implemented method that allows entities to open accounts at a billing and payment system by checking a checkbox on a check, enabling the system to process invoices and money transfers electronically without revealing bank account information, using image recognition and OCR to extract data from invoices, and generating enhanced payment documents with embedded invoice images for secure and efficient transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Extent of automation
If SMEs install dedicated electronic systems for processing invoices and payments, then automation capability is improved, but cost increases significantly
Solution Approach 1:
The patent merges multiple SMEs into a single centralized electronic processing system, allowing them to share infrastructure and operational costs. By consolidating invoice processing, payment routing, and account management functions across multiple businesses, the system achieves economies of scale that make automation affordable for individual SMEs.
Solution Approach 2:
The system provides universal functionality for multiple SMEs through a shared electronic platform that handles various transaction types (invoices, payments, money transfers) and supports multiple participants simultaneously. This multi-functional approach allows each SME to access comprehensive automation capabilities without maintaining separate dedicated systems.
2Ease of operation
If traditional payment methods are used, then bank account information must be shared between parties, but security and privacy are compromised
Solution Approach 1:
The system introduces a centralized electronic platform as an intermediary between payors and payees. This mediator manages bank account information securely, routing payments without requiring direct exposure of account details between transaction parties. The intermediary maintains privacy while enabling seamless payment processing through its controlled information management system.
3Quantity of substance
If a standardized transaction system is implemented across multiple businesses, then cost sharing is enabled, but system complexity increases
Solution Approach 1:
The system establishes a universal standardized platform that handles multiple transaction types and serves numerous businesses through a single integrated architecture. This universal system enables cost sharing across participants while managing complexity through standardized protocols and centralized control, avoiding the need for each business to implement separate complex systems.
Data Source
AI summary
Enhanced systems and methods for processing invoices, payments, and money transfers are described. One aspect of the invention is a computer-implemented method (and corresponding system and computer program product) for inviting an entity to open an account at a billing and payment system, the method comprising: issuing a check payable to the entity, wherein a checkbox for opening an account at the billing and payment system is printed on an endorsement section of the check along with a reference to additional information regarding additional information related to the account opening; receiving an image of the endorsement section of the check after the check is cleared; determining whether the checkbox is checked in the image; and responsive to a determination that the checkbox is checked, opening an account for the entity at the billing and payment system.