COIN Payment Hub for Multi-Party Transaction Reconciliation
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Solution Overview
Problem
Existing payment processing systems face challenges in managing complex payment transactions involving multiple entities, different accounting systems, and varying protocols, leading to difficulties in ensuring timely and accurate payments, increased fraud risks, and operational inefficiencies.
Innovation Solution
A COIN payment event data hub is introduced to manage data about payment events by receiving and processing participant data, financial account numbers, monetary amounts, and payment statuses. This hub creates transaction accounts, makes ledger entries, and balances accounts using double-entry accounting, while also encrypting sensitive data and facilitating bi-directional connections with external payment systems.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If multiple entities and accounting systems are involved in payment transactions, then payment processing capability is improved, but system complexity increases
Solution Approach 1:
The patent introduces a central hub as an intermediary entity that connects multiple payment systems, accounting systems, and participants. This hub standardizes communication protocols and translation rules, allowing diverse systems to interact through a common interface rather than requiring direct integration between each pair of systems, thereby managing complexity while maintaining versatility
Solution Approach 2:
The hub is designed as a universal platform that can handle multiple types of payments, accounting methods, and communication protocols simultaneously. It provides multi-functional capabilities including transaction routing, reconciliation, fraud detection, and reporting across different payment systems, reducing the need for separate specialized systems
2Adaptability or versatility
If multiple parties are involved in payment transactions, then payment facilitation capability is improved, but tracking and reconciliation difficulty increases
Solution Approach 1:
The hub implements automated feedback mechanisms that continuously monitor transaction status, account balances, and reconciliation states across all connected systems. It provides real-time or near-real-time feedback to participants about payment status, discrepancies, and required actions, enabling proactive management of multi-party transactions
Solution Approach 2:
As a central intermediary, the hub maintains a master record of all transactions involving multiple parties. It tracks the flow of funds and information between all participants, automatically reconciling accounts and identifying discrepancies, thereby simplifying the tracking complexity that would otherwise require coordination among all parties
3Productivity
If rapid translation and resolution systems are implemented, then transaction processing speed is improved, but system complexity increases
Solution Approach 1:
The hub pre-configures translation rules, routing paths, and validation criteria for different payment systems and protocols. By establishing these translation frameworks in advance, the system can rapidly process transactions without requiring complex real-time decision-making or ad-hoc configuration, thus achieving speed without proportional increases in operational complexity
Data Source
AI summary
A system and method are described for a COIN-based payment event data management system. The COIN can provide a consolidated source of accounting for all parties to a transaction by providing for multi-directional translation, resolution, accounting and other functions. A COIN server can interface with buyers and sellers, requestors and debtors, and other parties. The COIN server can communicate with different API's of various parties. Functionality can include means of analyzing payment and transaction behavior.