Clearing Institution User Code Verification for Payment Routing
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Solution Overview
Problem
The existing payment processing systems face inefficiencies due to the inability of acquirers to determine the account institution associated with a user code, leading to low payment processing efficiency and lack of uniqueness and mutual exclusivity among user codes across different account institutions.
Innovation Solution
A payment processing system and method that involves a user terminal, merchant terminal, e-wallet backend system, clearing institution, acquirer, and account institution, where the clearing institution verifies and forwards payment requests based on user codes, ensuring accurate account institution selection and improving payment processing efficiency through unified coding rules and interface standards.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If user codes are generated independently by different account institutions, then each institution can manage its own codes, but the uniqueness and mutual exclusivity of user codes cannot be guaranteed across institutions
Solution Approach 1:
The clearing institution establishes a universal user code management system that serves all account institutions. The code generation and verification functionality is centralized at the clearing institution level, allowing it to perform multiple functions: generating unique codes for different institutions, verifying codes during payment, and routing payments to the correct institution. This universal system ensures uniqueness across all institutions without requiring each institution to have separate complex management systems.
Solution Approach 2:
The clearing institution acts as an intermediary between account institutions and the payment system. Instead of account institutions directly managing user codes independently, the clearing institution mediates the code generation and verification process. The acquirer sends payment requests with user codes to the clearing institution, which then verifies the codes and routes to the appropriate account institution, ensuring uniqueness while simplifying the overall system architecture.
2Productivity
If the acquirer cannot determine the account institution from the user code, then payment requests cannot be routed correctly, but implementing a complex verification system increases processing time
Solution Approach 1:
The clearing institution performs preliminary verification of user codes before routing payment requests to account institutions. By verifying the code's validity and determining the associated account institution in advance, during the payment request processing stage, the system avoids time-consuming trial-and-error approaches. The clearing institution validates the user code format, checks its authenticity, and identifies the target account institution before the actual payment execution, thereby improving overall processing efficiency without significant time loss.
3Adaptability or versatility
If multiple account institutions operate independently without unified standards, then each institution has flexibility in its implementation, but development and maintenance costs increase
Solution Approach 1:
The patent implements a universal interface standard centered around the clearing institution that enables multiple account institutions to operate within a unified framework. The clearing institution provides standardized interfaces for user code generation, verification, and payment routing that work across all participating account institutions. This universal standard allows institutions to maintain operational flexibility while benefiting from shared infrastructure, reducing duplicate development efforts and lowering overall system maintenance costs compared to completely independent implementations.
Data Source
AI summary
The present application provides a payment processing system and method, wherein the system comprises: a merchant terminal reading a user code of a user terminal to generate a transaction order and sending the order to an acquirer; the acquirer generating a payment request according to the order, sending the request to the clearing institution, and the clearing institution forwarding the request to an account institution according to the user code; the account institution making user funds deduction according to the request and returning payment processing result notification information to the clearing institution, and the clearing institution forwarding the information to the acquirer and an e-wallet backend system at the same time; the e-wallet backend system sending the information to the user terminal and the user terminal displaying a payment result, and the acquirer receiving the information forwarded by the clearing institution and the merchant terminal displaying the payment result.