Escrow Payment System for Order Cancellation
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Solution Overview
Problem
Online purchases often restrict consumers from making changes or cancellations after submitting payment, leading to tied-up funds and potential losses due to delayed or unauthorized transactions, especially when multiple parties are involved.
Innovation Solution
A computing system that uses AI to hold payment information in escrow for a specified time, allowing users to modify or cancel pending purchases while reserving goods or services at the original price, and automatically processes payments upon expiration, enabling informed decision-making and reducing unnecessary costs.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If payment information is processed immediately upon order submission, then the transaction speed is improved, but the consumer loses the ability to make changes or cancel the order, leading to potential losses
Solution Approach 1:
The system performs preliminary actions by separating payment information collection from payment processing. Payment information is gathered and validated in advance, but the actual charge is delayed until a later time (e.g., when the item ships or a predetermined time elapses). This allows consumers to modify or cancel orders before the payment is executed, while still enabling fast transaction processing.
Solution Approach 2:
The payment process is segmented into distinct phases: (1) collection and validation of payment information, (2) order processing and fulfillment, and (3) actual payment execution. This segmentation allows the system to process orders quickly while delaying the financial transaction until an appropriate time, resolving the contradiction between speed and flexibility.
2Ease of operation
If payment information is held in escrow for a window of time to allow modifications, then the consumer's ability to make changes is improved, but the transaction processing time increases
Solution Approach 1:
Payment information is collected and held in escrow in advance of the actual payment execution. This preliminary holding of payment data (without actual charging) allows consumers a window to modify or cancel orders while preparing for efficient payment processing later, reducing the time loss by having everything ready beforehand.
Solution Approach 2:
An escrow mechanism acts as an intermediary between immediate payment processing and consumer flexibility. The escrow holds payment information in a suspended state, allowing consumers to make changes during the escrow period while preventing premature payment execution, thus balancing flexibility with efficient processing.
3Ease of operation
If items are added to an electronic shopping cart for later purchase, then the consumer's flexibility is improved, but the items may be sold out or price may change by the time of purchase
Solution Approach 1:
When items are added to the cart with an option to hold, the system performs preliminary actions by reserving the items and locking in the price before the consumer completes the purchase. This preliminary reservation ensures availability and price guarantee while still allowing the consumer to complete the purchase later at their convenience.
Solution Approach 2:
The system introduces an intermediary holding period between adding items to the cart and completing the purchase. During this holding period, the items and prices are reserved, acting as a mediator that guarantees availability and price while providing consumer flexibility to delay the actual transaction.
4Measurement precision
If multiple parties are involved in a purchase decision, then the decision-making quality is improved, but the time to complete the transaction increases
Solution Approach 1:
The system collects payment information and prepares the transaction in advance while allowing multiple parties to review and approve the purchase during the escrow period. This preliminary preparation of payment and order details enables informed group decision-making without delaying the actual transaction execution, which occurs automatically after approval or at a predetermined time.
Data Source
AI summary
Systems, methods, and computer-readable storage media of protecting customer information. One method includes detecting a user device associated with a user has navigated to a page of an online store, inserting code comprising a first interactive element associated with a purchase option into the page prior to presenting the page on the user device, and receiving a pending purchase order. The method further includes transmitting a notification to a merchant system associated with the online store to reserve a good or service for a period of time, capturing, via an input circuit of the user device, user input of the user, and assigning a point value to the user input. The method further includes generating a recommendation to cancel, proceed, or modify the pending purchase order based on an evaluation of the point value, and providing, to the user device, the recommendation during the pendency of the period of time.