Automated Check Scanning and Invoice Credit Application
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Small and medium-sized enterprises (SMEs) face challenges in transitioning to electronic payment systems due to high costs and lack of standardized transaction systems, and traditional payment methods require bank account information sharing, leading to inefficiencies and security issues.
Innovation Solution
A system and method for scanning payment instruments like checks, identifying the originating entity, and applying credits to invoices, enabling automated processing and secure electronic payments without revealing bank account information, using a computer-implemented method and computing devices to manage invoices and payments across multiple entities.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional payment methods are used, then bank account information can be shared for payment processing, but security issues and inefficiencies arise due to exposed bank account information
Solution Approach 1:
The patent introduces an intermediary payment processing system that acts as a mediator between payor and payee. This system uses check imaging and automated processing to handle payments without requiring direct sharing of bank account information between trading parties. The intermediary system securely manages the payment data and routing information, thereby maintaining security while enabling efficient payment processing.
2Extent of automation
If SMEs install dedicated electronic payment systems, then electronic transaction processing capability is achieved, but high costs make it not cost effective
Solution Approach 1:
The patent describes a universal payment processing system that can be accessed by multiple SMEs through existing banking infrastructure. Rather than requiring each SME to install dedicated electronic payment systems, the solution provides multi-functional access to check imaging, processing, and electronic payment capabilities through a shared platform, making automation cost-effective for small and medium enterprises.
Solution Approach 2:
The system enables automated self-service processing of checks and payments through imaging technology and automated data extraction. Checks are automatically scanned, processed, and routed through the system without requiring manual intervention or dedicated on-premises equipment at each SME location, reducing implementation costs while maintaining automation benefits.
3Productivity
If manual payment processing is used, then bank account information security is maintained, but inefficiencies and high labor costs occur
Solution Approach 1:
The patent replaces manual mechanical payment processing with automated imaging and data processing systems. Checks are scanned and converted to digital images, with automated extraction of payment information, routing, and processing. This substitution of mechanical manual operations with automated optical and computational systems dramatically improves processing efficiency while reducing the time required for payment operations.
Data Source
AI summary
Embodiments of the present disclosure may be used to scan a check or other payment instrument into an image file and apply a credit to one or more invoices associated with the entity, such as invoices issued by a business partner of the entity originating the check. Where there are multiple invoices outstanding invoices, embodiments of the present disclosure can selectively apply credits to such invoices based on input from the entity and/or based on rules defining how such credit are to be applied to the invoices.