Dynamic Settlement Mode Switching for Payment Risk Control
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Solution Overview
Problem
Existing settlement systems face issues where off-line authentication is given to payers with low credit ratings, leading to excessive payment risks for sellers, and customers are inconvenienced by the separation of bank account balances for on-line and off-line settlements, limiting their usage.
Innovation Solution
A settlement system that includes a terminal device with selection means to compare payment amounts with set amounts, allowing switching between off-line and on-line processing, and a server device that receives and updates payment amounts, reducing risk and inconvenience by enabling seamless switching between settlement modes without user awareness.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If off-line authentication is given to all payers to speed up processing, then processing speed is improved, but payment risk increases for low credit rating payers
Solution Approach 1:
The patent applies local quality by setting different authentication modes for different payers based on their individual credit ratings. High credit rating payers receive off-line authentication (faster), while low credit rating payers receive on-line authentication (safer). This resolves the contradiction by making the authentication mode locally optimized for each payer rather than uniformly applied.
Solution Approach 2:
The patent changes the parameter of authentication mode (on-line vs off-line) based on the payer's credit rating. The server device dynamically adjusts which authentication method is used by comparing the payment amount with a credit-based threshold, thereby resolving the contradiction between speed and risk through parameter adaptation.
2Reliability
If bank account balance is separated into on-line and off-line settlement balances, then off-line settlement risk is controlled, but customer convenience deteriorates due to inability to use full balance
Solution Approach 1:
The patent extracts only the necessary portion of the bank account balance for off-line settlement control, rather than separating the entire balance. The server device calculates a credit limit based on the payer's credit rating and historical behavior, and only this extracted portion is reserved for risk control. The remaining balance remains available for on-line settlement, thus maintaining customer convenience while controlling risk.
Solution Approach 2:
The patent applies partial action by using only a portion of the bank account balance for risk control purposes. Instead of separating the full balance into on-line and off-line portions, the system calculates an appropriate credit limit (partial amount) based on credit rating and payment behavior, leaving the excess balance available for flexible use by customers.
3Reliability
If on-line authentication is used for all payments, then payment risk is reduced, but processing speed deteriorates due to mandatory server verification
Solution Approach 1:
The patent segments the authentication process into two distinct modes: on-line authentication (server-verified) and off-line authentication (local-verified). The system divides payers into different segments based on their credit ratings and payment histories, applying the appropriate authentication mode to each segment. This segmentation resolves the contradiction by allowing fast off-line processing for trusted payers while maintaining secure on-line processing for others.
Data Source
AI summary
A settlement system includes a server device and a terminal device. The terminal device is configured to compare a payment amount with a set amount stored in a recording medium; if the payment amount is equal to or less than the set amount, perform an off-line process; and if the payment amount is larger than the set amount, perform an on-line process. In the off-line process, the terminal device rewrites the set amount stored in the recording medium by subtracting the payment amount from the set amount; and sends the payment amount to the server device for further processing. In the on-line process, the terminal device sends the payment amount to the server device; determines whether an update value is received from the server device; and when the update value is received, rewrites the set amount stored in the recording medium to be the update value.