Dynamic Payment Settlement with Multi-Source Funding
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Solution Overview
Problem
Existing payment systems do not allow for the real-time application of reward points during transactions and require manual handling to utilize multiple funding sources, making it cumbersome to capture rewards effectively.
Innovation Solution
A computer-implemented system that dynamically processes electronic payment requests by enabling real-time application of multiple funding sources, including reward programs, at the point of sale, allowing users to choose and apply various types of funds transparently within the existing payment structure.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If reward programs are implemented as separate backend systems that operate after-the-fact, then reward redemption flexibility is improved, but transaction processing time and complexity increase
Solution Approach 1:
The system performs preliminary actions by pre-calculating and pre-approving reward applications before the actual transaction settles. The reward determination engine evaluates eligibility and calculates reward amounts in advance, storing these decisions for immediate application when the transaction occurs, thereby reducing real-time processing delays.
Solution Approach 2:
A reward determination engine is introduced as an intermediary component between the payment processing system and the reward program backend. This intermediary layer handles the complex logic of reward eligibility assessment and calculation, enabling seamless integration without requiring direct backend calls during transaction processing.
2Adaptability or versatility
If multiple funding sources are manually handled, then funding source flexibility is improved, but operational complexity and manual intervention requirements increase
Solution Approach 1:
The system implements self-service by automatically selecting and applying the optimal funding source combination without manual intervention. The funding resolution engine autonomously evaluates multiple funding sources (reward points, bank accounts, credit lines) and makes real-time decisions on how to allocate funds based on predefined rules and transaction requirements.
Solution Approach 2:
Multiple funding sources and reward programs are merged into a unified processing architecture where a single payment transaction can simultaneously access and combine funds from various sources. The system integrates reward point redemption, bank account transfers, and credit line approvals into one coordinated process, reducing operational complexity through consolidation.
3Ease of manufacture
If reward points are applied after the transaction, then reward application simplicity is improved, but customer value capture opportunity is reduced
Solution Approach 1:
The system performs preliminary reward eligibility determination and calculation before the transaction completes. The reward determination engine assesses whether the transaction qualifies for rewards and calculates the exact reward amount in advance, so that when the transaction settles, the reward can be applied immediately without requiring post-transaction processing or customer action.
4Productivity
If real-time reward application is implemented, then customer value capture is improved, but system complexity and processing requirements increase
Solution Approach 1:
A dedicated reward determination engine serves as an intermediary layer that handles all real-time reward calculation and application logic. This specialized component isolates the complexity of reward program rules from the main payment processing system, enabling real-time reward application while keeping the overall system architecture manageable through modular design.
Data Source
AI summary
A computer implemented system and method for dynamically settling an electronic funding request using multiple funding sources that may include conventional accounts such as checking as credit accounts as well as accounts that are associated with reward programs and other third-party programs