Direct POS-to-User RTP Authorization to Bypass Payment Network Delays
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Solution Overview
Problem
Existing payment systems using debit and credit card networks introduce network delays, security risks, and incur fees, which affect the efficiency and security of transactions between customers and merchants.
Innovation Solution
A payment facilitator device enables direct communication between a user device and a point-of-sale device to authorize real-time payments (RTP) between customer and merchant financial institution accounts, bypassing traditional payment networks.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If a traditional payment network is used to process transactions, then transaction authorization and processing can be completed, but network delays occur and transaction speed is reduced
Solution Approach 1:
The patent extracts the payment authorization function from the traditional payment network and implements it directly between the user device and POS device through a payment facilitator. This removes the intermediary payment network infrastructure that causes delays, allowing direct communication and faster transaction processing while maintaining security through the facilitator's involvement in the authorization flow.
2Reliability
If traditional payment networks are used, then transaction processing is established, but security risks for sensitive information are introduced
Solution Approach 1:
The payment facilitator acts as a trusted intermediary between the user device and POS device. It receives payment requests, obtains customer authorization, and provides payment authorizations without exposing sensitive information to the traditional payment network. This intermediary approach maintains security by controlling the flow of sensitive data while enabling direct communication.
3Ease of operation
If traditional payment networks are utilized, then transaction processing is enabled, but fees are incurred by the customer and/or merchant
Solution Approach 1:
The patent extracts the fee structure from the traditional payment network model by eliminating the need for intermediary payment network services. By implementing direct communication between user device and POS device through the payment facilitator, the system removes the layers that traditionally charge processing fees, enabling transactions without incurring costs for customers or merchants while maintaining operational capability.
Data Source
AI summary
Systems and methods are disclosed for providing a payment authorization to a real-time payment (RTP) network to initiate an RTP between a customer financial institution account and a merchant financial institution account. One method performed by a payment facilitator device includes, based on a user device of a customer and a point-of-sale (POS) device of a merchant performing a direct communication regarding a transaction, receiving a payment request for a transaction amount of the transaction and receiving a customer authorization for the transaction. The payment facilitator then provides a payment authorization to an RTP network to initiate an RTP for the transaction amount of the transaction from a customer financial institution account to a merchant financial institution account, based on receiving the customer authorization for the transaction.