Delayed Billing for On-Demand Identity Products
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Solution Overview
Problem
Traditional billing systems for on-demand products often charge consumers immediately, even if the product is not delivered due to complexities, posing significant risk as consumer-protection laws and regulations evolve.
Innovation Solution
Implementing a delayed billing system that uses server computers to receive binding requests, attempt product delivery, and ascertain applicable delayed-billing settings, thereby delaying billing until delivery verification and consumer authentication are confirmed.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If immediate billing is implemented for on-demand products, then cash flow and revenue recognition are improved, but consumer protection risks and billing accuracy deteriorate
Solution Approach 1:
The system performs preliminary verification of product delivery completion before initiating billing. Delivery status is checked and confirmed as complete before the billing transaction is executed, ensuring that only successfully delivered products are billed.
Solution Approach 2:
The system implements feedback mechanisms where delivery confirmation signals are used to trigger billing. The billing process waits for feedback from the delivery system confirming that the product has been successfully delivered to the consumer before proceeding with the charge.
2Reliability
If delayed billing is implemented to verify delivery, then consumer protection and billing accuracy are improved, but cash flow and revenue recognition deteriorate
Solution Approach 1:
The system performs preliminary verification of product delivery completion before initiating billing. Delivery status is checked and confirmed as complete before the billing transaction is executed, ensuring that only successfully delivered products are billed.
Solution Approach 2:
The system implements feedback mechanisms where delivery confirmation signals are used to trigger billing. The billing process waits for feedback from the delivery system confirming that the product has been successfully delivered to the consumer before proceeding with the charge.
3Productivity
If traditional immediate billing is used, then cash flow is improved, but compliance with consumer-protection laws deteriorates
Solution Approach 1:
The billing system is made dynamic by adjusting the billing trigger based on delivery status. Instead of a fixed immediate billing approach, the system adapts its billing timing based on real-time delivery confirmation, allowing flexibility to comply with varying consumer protection requirements.
Solution Approach 2:
The system changes the billing parameter from immediate to delayed based on delivery verification. The billing timing parameter is adjusted dynamically according to whether delivery has been confirmed, allowing the system to adapt to legal compliance requirements while maintaining cash flow efficiency.
Data Source
AI summary
In one embodiment, a method includes receiving a binding request for an on-demand identity product from a consumer. The method also includes attempting to provide the on-demand identity product. The method further includes, responsive to the binding request, ascertaining delayed-billing settings that are applicable to the on-demand identity product. In addition, the method includes delaying billing of the on-demand identity product until it can be confirmed that the identity-product provision system has complied with the delayed-billing settings.