Electronic Check Payment System Identity Verification

Resolve Bottlenecks,
Find Innovative SolutionsGenerate Solutions

Solution Overview

Problem

Credit card transactions pose risks to merchants in electronic commerce, particularly in remote transactions, and are not universally accepted, leading to increased transactional costs and reduced consumer convenience.

Innovation Solution

An electronic check payment system that facilitates network transactions by validating debit information, verifying consumer identity, and allowing payments using an electronic facsimile of a personal check, reducing reliance on credit card payments.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If credit card transactions are used for remote electronic commerce, then payment convenience is improved, but merchant risk increases due to lack of authentication and higher transactional costs

Engineering Contradiction:

Improvepayment convenienceVSAvoidmerchant risk

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The system performs preliminary authentication of the cardholder's identity before authorizing the transaction. Identity verification data is collected and verified in advance, creating a reliable authentication foundation that reduces merchant risk while maintaining remote transaction convenience

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The system introduces an intermediary authentication process between the credit card transaction and the merchant. This intermediary layer verifies identity information and provides authentication confirmation, bridging the trust gap in remote transactions without requiring physical card presence

Inventive Principle:

Principle #24Intermediary (Mediator)

2Adaptability or versatility

If credit card payments are accepted, then consumer payment options are increased, but transactional costs for merchants increase significantly

Engineering Contradiction:

Improvepayment optionsVSAvoidtransactional costs

Core Design Contradiction:

Adaptability or versatilityVSLoss of energy

Solution Approach 1:

The system creates a universal payment platform that can handle multiple payment types (credit cards, debit cards, electronic checks) through a single integrated interface. This multi-functionality allows merchants to accept various payment methods while optimizing for lower-cost processing options

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The system changes the parameter of payment processing by offering merchants the ability to select between different payment types and processing methods. By parameterizing the payment options and their associated cost structures, merchants can optimize their transaction costs while maintaining payment versatility

Inventive Principle:

Principle #35Parameter changes

3Productivity

If credit card transactions are processed, then electronic commerce capability is enabled, but fund transfer time is delayed reducing merchant cash flow

Engineering Contradiction:

Improveelectronic commerce capabilityVSAvoidfund transfer time

Core Design Contradiction:

ProductivityVSLoss of time

Solution Approach 1:

The system introduces dynamic fund transfer options that allow merchants to choose between immediate and delayed settlement based on their cash flow needs. The payment processing system dynamically adjusts the timing of fund transfers while maintaining electronic commerce functionality

Inventive Principle:

Principle #15Dynamics

Solution Approach 2:

The system performs preliminary authorization and approval of transactions before final fund transfer. This preliminary action enables immediate electronic commerce capability while allowing flexible timing for actual fund movement, improving merchant cash flow management

Inventive Principle:

Principle #10Preliminary action

4Reliability

If electronic signatures are adopted for remote transactions, then authentication capability is improved, but technology uniformity and widespread adoption are lacking

Engineering Contradiction:

Improveauthentication capabilityVSAvoidtechnology uniformity

Core Design Contradiction:

ReliabilityVSAdaptability or versatility

Solution Approach 1:

The system copies and verifies identity information from reliable external sources (driver's licenses, passports, government databases) rather than relying solely on self-declared electronic signatures. This copying approach from authoritative sources creates uniform, verifiable authentication that works across different platforms and jurisdictions

Inventive Principle:

Principle #26Copying

Data Source

PatentUS7752132B2Electronic payment and authentication system with debit and identification data verification and electronic check capabilities

Publication Date: 2010.07.06 FIDELITY INFORMATION SERVICES LLC

AI summary

An electronic payment and authentication system that includes features to verify the authenticity of a payer, validate debit data, and facilitate debit (as opposed to credit) payment transactions. The electronic payment system allows a consumer to purchase items and services via a network while utilizing a debit transaction. The invention provides merchants with the ability to verify the identity of the consumer, determine if the consumer is a good debit transaction risk, and retrieve debit data associated with a particular consumer.