Digital Check Splitting via Embedded Validation Chips
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Solution Overview
Problem
Current digital check processing systems lack the ability to efficiently disburse portions of a digital check image to multiple recipients, requiring cumbersome physical steps and limited functionality in mobile applications, which hinders convenience and security.
Innovation Solution
A computing platform that generates and validates digital check images with embedded watermarks and digital chips, allowing for secure and efficient transfer of funds to multiple recipients using a distributed ledger, enabling digital endorsement and automatic transfers without physical branch visits.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If digital check processing is used, then convenience is improved, but functionality for multiple recipients is limited
Solution Approach 1:
The patent segments a single digital check into multiple sub-checks that can be distributed to different recipients. The system divides the check amount into portions and generates separate digital check images for each recipient, enabling one check to serve multiple purposes and recipients simultaneously.
Solution Approach 2:
The digital check processing system is enhanced to perform multiple functions: it can process single-recipient checks traditionally, and simultaneously handle multi-recipient checks by automatically splitting and distributing portions to multiple accounts. This makes the system universal, handling both simple and complex check scenarios through the same platform.
2Reliability
If traditional check processing methods are used, then security is maintained, but physical branch visits are required
Solution Approach 1:
The patent replaces the mechanical process of physical branch visits with a digital system. Users can initiate check processing, split checks, and receive funds through mobile devices or computers. The system uses electronic validation, digital signatures, and automated processing to eliminate the need for physical presence at bank branches while maintaining security through cryptographic methods and secure communication protocols.
3Ease of operation
If digital check splitting is implemented, then convenience for multiple recipients is improved, but system complexity increases
Solution Approach 1:
The system performs automatic validation and processing of split checks without requiring manual intervention for each step. When a user initiates a check split, the system automatically validates the original check, divides the amount according to specified portions, generates multiple digital check images with appropriate watermarks, and distributes them to respective recipients. This automation reduces the perceived complexity for users while handling the intricate processing in the background.
Solution Approach 2:
The system performs preliminary validation of the original digital check before splitting it into multiple portions. It verifies the check's authenticity, validates the recipient information, and pre-calculates the distribution amounts. This preliminary action ensures that all subsequent splitting and distribution operations are based on a validated foundation, reducing errors and simplifying the overall process.
4Adaptability or versatility
If multiple digital check images are generated, then transfer to multiple parties is enabled, but validation complexity increases
Solution Approach 1:
The patent introduces watermarks as intermediary elements in the digital check images. These watermarks contain encoded information about the check's validity, the portion amount, and the intended recipient. The watermarks serve as a quick visual and machine-readable indicator that validates the check without requiring complex verification processes, simplifying the validation of multiple generated check images.
Solution Approach 2:
The system creates digital copies of the original check with modified parameters (different recipient names, adjusted amounts, unique identifiers). Each copied check image is generated through a standardized template that automatically incorporates validation elements, ensuring consistency across all copies and simplifying the validation process compared to creating entirely new check formats for each recipient.
Data Source
AI summary
Aspects of the disclosure relate to digital check processing. A computing platform may receive, from a first recipient, a request to transfer a first portion of funds, corresponding to the first digital check image, to a second recipient account and a second portion of the funds, corresponding to the first digital check image, to a third recipient account. The computing platform may generate second and third digital check images representative of the first and second portions of the funds respectively. Based on successful validation of the second digital check image and the third digital check image, the computing platform may embed, into the second and third digital check images, a digital chip that indicates the successful validation. The computing platform may send, to the second recipient account and the third recipient account, the second and third digital check images respectively.