Direct Transfer System Using Fund Transfer Aliases
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Solution Overview
Problem
Current fund transfer mechanisms, such as direct deposits, wire transfers, and physical checks, are inefficient due to lengthy transaction periods and high costs associated with intermediaries, which can increase the overall cost and time required for settlement.
Innovation Solution
A user-configurable direct transfer system that allows users and entities to establish immediate, private, and secure fund transfers directly between monetary accounts without intermediaries, using a network environment with electronic devices and servers to facilitate transactions through fund transfer aliases, eliminating the need for intermediaries and enabling real-time or near-real-time disbursements.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If direct deposits or wire transfers are used for fund transfers, then the transfer mechanism is established, but the transaction period extends to one to several business days
Solution Approach 1:
The patent extracts and eliminates the intermediary entities (clearinghouses, payment networks, merchant acquirers) from the fund transfer system. By removing these intermediaries that cause delays, the system enables direct peer-to-peer fund transfers between user accounts, reducing the transaction period from multiple business days to immediate or near-real-time settlement.
2Speed
If physical checks are used for fund transfers, then the transfer mechanism is established, but the transaction period becomes longer than direct deposits or wire transfers
Solution Approach 1:
The patent replaces the mechanical physical check system with an electronic digital fund transfer system. Instead of physical paper checks that require manual processing, mailing, and clearing, the system uses electronic credentials and digital account transfers, eliminating the time-consuming physical handling and extending transaction periods associated with check-based transfers.
3Ease of operation
If intermediaries such as merchant acquirers, payment networks, and clearinghouses are used, then fund transfer capability is provided, but per transaction fees are collected increasing overall cost
Solution Approach 1:
The patent extracts and removes intermediary entities from the fund transfer pathway. By eliminating merchant acquirers, payment networks, and clearinghouses from the transaction chain, the system enables direct account-to-account transfers that bypass fee-collecting intermediaries, thereby reducing the overall transaction cost while maintaining fund transfer capability through a simplified direct connection.
4Ease of operation
If intermediaries are involved in fund transfers, then the transfer mechanism is established, but the length of time required for settlement increases
Solution Approach 1:
The patent introduces a new type of intermediary - a decentralized credential verification system that validates fund transfer requests without requiring traditional financial intermediaries. This mediator layer uses cryptographic verification and account validation to enable immediate settlement, replacing the multi-day clearing process with instant verification and transfer while maintaining operational ease.
Data Source
AI summary
A device implementing a user configurable direct transfer system may include at least one processor configured to receive, from an electronic device associated with a user account, a request to establish a type of transfer between a first account associated with an entity and a second account associated with the user account, the request including an entity identifier and a transfer type identifier. The at least one processor may be further configured to generate a transfer alias that is stored in association with the entity identifier, a second account identifier, and the transfer type identifier, and provide the transfer alias to the electronic device and a server associated with the entity to facilitate the type of transfer between the first account associated with the entity and the second account associated with the user account.