Electronic Basket for Shared Expense Pooling
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Solution Overview
Problem
Existing methods for managing shared expenses among multiple individuals are inefficient, as they often burden vendors with multiple payment cards and fail to fairly allocate costs, especially when expenses vary across different categories.
Innovation Solution
A system and method for creating an electronic basket with a virtual prepaid payment card that allows users to pool funds and share expenses, enabling fair allocation and tracking of joint expenses through a network interface and user-card database, allowing authorized users to make payments from contributed funds.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If multiple individual payment cards are used to pay a single bill, then the payment capability is improved, but the vendor's operational burden increases and many vendors limit the number of payment cards accepted
Solution Approach 1:
The patent combines multiple individual payment cards into a single group payment card that consolidates multiple account numbers. This allows the group to pay bills using one card instead of multiple cards, reducing the vendor's operational burden while maintaining the ability to charge multiple accounts. The group payment card merges the functionality of several payment instruments into a unified payment solution.
Solution Approach 2:
The group payment card serves multiple functions: it acts as a single payment instrument for vendors, while simultaneously representing multiple individual accounts. The card can be used at any vendor that accepts standard payment cards, providing universal payment capability while internally managing multiple account relationships. This multi-functionality resolves the contradiction by making the payment system both versatile and simple for vendors.
2Ease of operation
If the bill is evenly divided among payers, then the payment process is simplified, but fairness is compromised when people order entrees of different costs
Solution Approach 1:
The system applies different allocation rules to different portions of the bill. Instead of uniformly dividing the entire bill, the system allows individual line items to be allocated to specific individuals based on what they ordered or consumed. This local differentiation of allocation quality maintains fairness for individual items while keeping the overall payment process simple through automated calculation.
Solution Approach 2:
The system provides feedback mechanisms that allow individuals to review and verify how their expenses are calculated and allocated. By providing transparency into the allocation process and allowing adjustments, the system maintains measurement precision for fairness while keeping the operational process simple through automated enforcement of allocation rules.
3Adaptability or versatility
If one person receives cash from cohorts and pays the vendor, then vendor compatibility is improved, but tracking total expenses and funding becomes a logistical nightmare
Solution Approach 1:
The system creates an electronic copy of the cash transaction process. Instead of physical cash changing hands, the system digitally tracks contributions from each cohort to a pooled fund that is then used for payment. This electronic copying of the cash mechanism maintains the simplicity of single-payment transactions while automatically tracking all contributions and expenses, eliminating the information loss associated with manual cash management.
4Productivity
If multiple individuals are assigned to buy different items for a joint project, then task division is improved, but keeping track of total expenses and funding becomes complex
Solution Approach 1:
The system merges the expense tracking for multiple individuals into a single unified group account. Even though individuals are divided into different task groups purchasing different items, all expenses are consolidated into one group payment instrument. This merging of expense management simplifies tracking while allowing continued task division and specialization among individuals.
Data Source
AI summary
A system, method, and computer-readable storage medium configured to enable the pooling and sharing of funds to cover shared expenses. An electronic basket is created. The electronic basket includes a virtual prepaid payment card with a unique identifier and associated with a user. The user is prompted for potential contributors to the electronic basket. A network interface electronically contacts the potential contributors, and the electronic basket is stored in a user-card database.