Exchange Provider for Stored Value Conversion
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Solution Overview
Problem
There is no simple method to efficiently transfer and convert different forms of stored value, such as monetary and nonmonetary values, like cell-phone minutes or travel points, from one form to another, as existing technologies like smart cards do not address conversion processes effectively.
Innovation Solution
A system and method involving an exchange provider with a processor, input device, output device, and database that receives, converts, and transmits value from one type to another, including assessing transaction fees, and can communicate with both local and external databases to facilitate the transfer, allowing for authentication and identification verification.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If smart cards are used to store and transfer value, then value can be electronically stored and transferred, but conversion of value from one form to another is not addressed
Solution Approach 1:
The patent introduces an exchange provider as an intermediary entity between value providers and value owners. This exchange provider facilitates the conversion of value between different forms (monetary, nonmonetary, different currencies) by acting as a central mediator that receives value from one provider and issues equivalent value from another provider, thereby enabling value conversion without requiring direct integration between all value providers.
Solution Approach 2:
The exchange provider is designed as a universal system that can handle multiple types of value conversion simultaneously - converting between different currencies, between monetary and nonmonetary value, and between different value providers. This multi-functional approach allows a single system to address various value conversion needs without requiring separate specialized systems for each conversion type.
2Reliability
If authentication is performed with the value provider to verify identity and adequate value, then security is improved, but the transfer process becomes more complex
Solution Approach 1:
The system performs authentication and verification of adequate value holdings as a preliminary action before the actual value transfer takes place. By verifying the value owner's identity and confirming sufficient value availability in advance, the system ensures security is established beforehand, allowing the subsequent transfer process to proceed smoothly without interruptions or additional verification steps.
Data Source
AI summary
A method and system are provided for transferring value from a value provider. A request initiated by a value owner to transfer value from the value provider to a recipient is received. An exchange provider receives the value in accordance with the request. The exchange provider includes a processor that converts the received value into a converted form. The converted value is then transmitted to the recipient by the exchange provider.