Dynamic Transaction Card Authorization via Automatic Fund Transfers

Resolve Bottlenecks,
Find Innovative SolutionsGenerate Solutions

Solution Overview

Problem

Conventional transaction card authorization methods rely on a maximum limit that is often inexact, leading to potential insufficient funds issues and unfair credit limits for users with limited credit history, requiring inefficient processing and lengthy setup processes.

Innovation Solution

A computer architecture that dynamically sets transaction cards to active or inactive states based on recent automatic transfers from a third-party institution, ensuring users have sufficient funds for transactions and allowing creditworthiness assessment without extensive credit checks, thereby streamlining transaction processing and user account setup.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of manufacture

If a predetermined maximum limit is used for transaction authorization, then the implementation is simple, but the limit is inexact and users may not have sufficient funds to pay for transactions

Engineering Contradiction:

Improveimplementation simplicityVSAvoidtransaction payment reliability

Core Design Contradiction:

Ease of manufactureVSReliability

Solution Approach 1:

The system performs preliminary actions by automatically transferring funds from a third-party institution to the user's account before transactions occur. This pre-funding mechanism ensures that users have sufficient funds available when needed, resolving the reliability issue while maintaining implementation simplicity through automated processes.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The system implements feedback mechanisms by monitoring transaction outcomes and fund availability, then adjusting authorization decisions accordingly. This closed-loop approach ensures that authorization accuracy improves over time while maintaining simple implementation through automated feedback processing.

Inventive Principle:

Principle #23Feedback

2Ease of manufacture

If a predetermined maximum limit is assigned to users with limited credit history, then the implementation is straightforward, but the limit is unnecessarily low and users cannot increase it despite having the ability to afford larger transactions

Engineering Contradiction:

Improveauthorization system simplicityVSAvoidcredit limit flexibility

Core Design Contradiction:

Ease of manufactureVSAdaptability or versatility

Solution Approach 1:

The system transitions from static predetermined limits to dynamic credit limits that automatically adjust based on user behavior, transaction history, and fund availability. This allows users with limited credit history to start with conservative limits that increase over time as they demonstrate reliable transaction patterns, resolving the adaptability issue while maintaining straightforward implementation through automated adjustment algorithms.

Inventive Principle:

Principle #15Dynamics

Solution Approach 2:

The system changes the credit limit parameter dynamically based on observed user behavior and financial capacity indicators. By monitoring successful transactions and fund replenishment patterns, the system automatically adjusts credit limits to match users' actual affordability, enabling users to access larger transaction amounts as they build credit history without manual intervention.

Inventive Principle:

Principle #35Parameter changes

3Device complexity

If conventional transaction authorization methods are used, then processing is relatively simple, but there is no guarantee that users will have sufficient funds and credit assessments are inaccurate

Engineering Contradiction:

Improveauthorization process complexityVSAvoidcreditworthiness assessment accuracy

Core Design Contradiction:

Device complexityVSMeasurement precision

Solution Approach 1:

The system introduces an intermediary automated fund transfer mechanism from third-party institutions that bridges the gap between credit assessment and actual fund availability. This intermediary process provides objective, real-time verification of users' financial capacity, significantly improving creditworthiness assessment accuracy while adding minimal complexity through standardized automated transfers.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The system replaces manual credit assessment mechanisms with automated algorithms that analyze transaction patterns, fund flow data, and behavioral indicators. This substitution of mechanical review processes with computational analysis improves measurement precision while maintaining relatively simple overall system complexity through automated decision-making protocols.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Data Source

PatentUS20240086932A1Computing architecture for transaction authorization and mediums and methods for the same

Publication Date: 2024.03.14 PERPAY INC

AI summary

Exemplary embodiments pertain to a computer architecture for supporting transactions through a transaction card, as well as methods, mediums, and interfaces for use with the architecture. According to one embodiment, a request to perform a transaction for an identified amount between a user and a merchant server may be received at a provider server associated with a transaction card issued to the user. The provider server may identify a card value store and a primary value store associated with the user. The provider server may determine whether the transaction card is in an active state based on an occurrence of an automatic transfer between an employer institution and the primary value store in a most-recent predetermined time interval. If the card is active, the provider server may transmit a control signal to the merchant server, the control signal configured to authorize the transaction on behalf of the user.