Country-Based Remittance Batching to Reduce Cross-Border Traffic
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Solution Overview
Problem
Cross-border payment processing networks experience increased traffic and inefficiencies due to individual remittance transactions, leading to higher costs, difficulty in fraud detection, and lack of transparency in fees, particularly on common pay dates.
Innovation Solution
A convertor computing device aggregates individual transfer amounts into batch transfers based on common recipient countries, generating instruction data files to distribute funds within matching countries, reducing cross-border traffic and enhancing transparency.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If individual remittance transactions are processed separately, then each transfer can be tracked individually, but network traffic increases substantially and transmission costs increase
Solution Approach 1:
The patent combines multiple individual remittance transactions into a single batch transfer when they share the same destination country. The convertor computing device aggregates transfer amounts from multiple users into one consolidated transfer, reducing the number of cross-border messages from N individual transfers to 1 batch transfer, thereby substantially decreasing network traffic while maintaining the ability to track and distribute individual amounts through instruction data files.
2Reliability
If individual remittance transactions are processed separately, then each transfer can be monitored, but fraud detection and tracing become more difficult due to the large number of transmissions
Solution Approach 1:
The patent merges monitoring functions by generating instruction data files that contain detailed information about each individual transfer within the batch. This allows payment processing networks to monitor and detect fraud at the batch level while still maintaining the ability to trace and identify specific individual transfers through the included instruction data, thereby improving fraud detection efficiency without sacrificing individual transfer visibility.
Solution Approach 2:
The convertor computing device acts as an intermediary that consolidates multiple individual transfers into a batch transfer while preserving individual transfer information through instruction data files. This intermediary function enables more efficient batch-level monitoring and fraud detection by payment processing networks, while still allowing detailed tracing of individual transfers when needed.
3Ease of operation
If individual transfers are sent across borders, then each transfer can be processed independently, but transmission costs incurred by users increase
Solution Approach 1:
The patent combines multiple individual cross-border transfers into a single batch transfer to reduce transmission costs. By aggregating transfers to the same destination country into one batch message rather than processing each individually, the system significantly reduces the fees charged by payment processing networks, making cross-border remittances more cost-effective for users while still maintaining independent transfer processing capabilities through instruction data files.
4Quantity of substance
If batch transfers are used to reduce network traffic, then cross-border traffic decreases, but the complexity of managing batch aggregation and distribution increases
Solution Approach 1:
The convertor computing device serves as an intermediary that automates the batch aggregation and distribution process. It receives individual transfer requests, automatically groups them by destination country, generates the batch transfer message, and creates the corresponding instruction data file for distribution. This automation reduces the operational complexity for users while achieving significant reductions in cross-border network traffic.
Solution Approach 2:
The system changes the processing parameter from individual transfer handling to batch transfer handling based on destination country grouping. By changing the aggregation level from individual transfers to country-based batches, the system reduces network traffic while the automated generation of instruction data files manages the complexity of distribution.
5Loss of information
If individual transfers are processed, then fee information can be provided per transfer, but users do not receive relevant information about total fees and actual amounts
Solution Approach 1:
The patent combines fee information and amount information for multiple individual transfers into the batch transfer process. The convertor computing device calculates and includes total fees and actual recipient amounts in the batch transfer message and instruction data files, providing users with comprehensive fee transparency and accurate amount information while reducing network traffic through batch processing.
Data Source
AI summary
A convertor computing device operable to reduce cross-border traffic over a network is provided. The convertor computing device is configured to store institution profile data associated with an institution and user profile data for a plurality of users associated with the institution. The convertor computing device is also configured to generate, based on the user profile data, sets of transfer data, each set identifying a recipient, associated recipient country, and transfer amount from a user. The convertor computing device is also configured to aggregate individual transfer amounts into a batch transfer amount based on matching recipient country, transfer the batch transfer amount in a single cross-border transaction from an institution account to a batch receiver in the matching country, and generate an instruction data file that instructs the batch receiver to distribute the individual transfer amounts to the associated recipients within the matching country.