Direct Bank Transfer App for Low-Fee Self-Checkout
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Solution Overview
Problem
Existing payment processing networks fail to provide a secure, verified, and low-fee method for merchants to receive electronic payments from customers, and customers face inconveniences such as needing to carry credit cards or share checking account information, with existing scan-n-go applications limited to single merchants and relying on high fees and third-party intermediaries.
Innovation Solution
A mobile computing device system that allows users to log into their financial institution, verify funds, and initiate direct transfers to merchants' banks through pre-established transfer associations, eliminating the need for third-party processors and reducing fees by using a smartphone app to manage transactions without human assistance.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If credit card payment networks are used, then transaction verification and customer acceptance are improved, but payment processing fees increase
Solution Approach 1:
The patent extracts and eliminates the third-party payment processor intermediary from the transaction flow. By enabling direct bank-to-bank transfers through the ACH network, the system removes the intermediate layer that charges processing fees, while maintaining transaction verification through direct bank authentication
Solution Approach 2:
The patent introduces a new intermediary mechanism - a pre-established transfer association between banks - that enables direct communication and fund transfer between customer and merchant banks without requiring traditional credit card processors. This new intermediary structure reduces fees while maintaining security
2Ease of operation
If third-party payment processors are used, then transaction processing is simplified, but fees and costs increase
Solution Approach 1:
The system performs preliminary action by pre-establishing transfer associations between banks before transactions occur. This advance setup includes storing bank account information and configuring transfer parameters, which simplifies subsequent transactions while eliminating the need for expensive third-party processors
3Productivity
If customers share checking account information with merchants, then direct transfers are enabled, but security risks and customer inconvenience increase
Solution Approach 1:
The system performs preliminary authentication by verifying customer identity and obtaining authorization before storing bank account information. This advance verification ensures that only authorized transfers are configured, reducing security risks while enabling fast direct transfers
Solution Approach 2:
The system implements feedback mechanisms where customers receive notifications and can approve or reject transfer requests. This real-time customer control allows fast processing while maintaining security through customer oversight
Data Source
AI summary
The present disclosure relates to a mobile computing device that is configured to secure a purchase transaction between a customer and merchant, and facilitate self-checkout between the user and any of several merchants. The system provides a payment processing network that achieves secure transactions free from fraud, while also having low fees. The system is based on establishing a relationship between a merchant's bank and a customer's bank, prior to a purchase transaction by the customer. The customer may then authorize their own bank to push funds to the merchant's bank in order to purchase goods or services using their smartphone, without the need to share any financial information between the user and merchant themselves. The smartphone is further configured to draw from multiple merchant product databases so that the customer may self-checkout, without the need to use a merchant-specific app, all within one app-linked system for payment and shopping.