Fund Exchange Server Security via Intermediary Mediation

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Solution Overview

Problem

Current online financial transactions, especially international money exchanges, face challenges such as the need for transmitting confidential information and the inefficiency of using checks, which increases time and effort, and lack of widely available credit card transactions for individuals.

Innovation Solution

A system and method for online financial transactions that allow users to establish online accounts for transferring funds between individuals or entities without requiring the transmission of confidential information, using a fund exchange server to facilitate 'send money' and 'request money' transactions, and enabling international currency exchanges with fraud detection and security measures.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Productivity

If individuals transmit confidential information such as credit card information over the Internet to effect financial transactions, then financial transactions can be completed, but the opportunity for information compromise increases

Engineering Contradiction:

Improvetransaction completionVSAvoidinformation compromise risk

Core Design Contradiction:

ProductivityVSObject-affected harmful factors

Solution Approach 1:

The patent extracts confidential information transmission from the transaction process by introducing a third-party intermediary system that handles fund transfers without requiring users to share sensitive financial data. The system uses account identifiers and routing information instead of exposing credit card numbers or bank account details across the network.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The patent introduces an intermediary financial transaction system that mediates between senders and recipients. This third-party platform receives transaction requests, processes fund transfers through partner financial institutions, and delivers funds without requiring direct exposure of confidential information between trading parties.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Productivity

If checks are used for person-to-person monetary transactions, then transactions can be effected, but postage and processing time are increased

Engineering Contradiction:

Improvetransaction capabilityVSAvoidtransaction processing time

Core Design Contradiction:

ProductivityVSLoss of time

Solution Approach 1:

The patent replaces the mechanical check-based transaction system with an electronic digital transfer system. Instead of physical checks requiring postal delivery and manual processing, the system uses electronic data transmission and automated fund transfers through digital banking networks, eliminating postage and significantly reducing processing time.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The patent implements preliminary setup of electronic account profiles and transaction protocols before actual money transfers. Users register their financial accounts and authorization parameters in advance, allowing instant execution of transfers without requiring check writing, addressing, or manual processing at the time of transaction.

Inventive Principle:

Principle #10Preliminary action

3Ease of operation

If credit card transactions are widely available for individuals, then online purchasing is facilitated, but security risks and fraud opportunities increase

Engineering Contradiction:

Improveonline transaction convenienceVSAvoidtransaction security

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The patent introduces a third-party intermediary system that sits between users and financial institutions, handling authentication and transaction authorization without requiring users to expose their credit card information to merchants or other recipients. The intermediary verifies user identity and authorizes transfers through secure channels.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent segments the transaction process into distinct functional components: user authentication, transaction authorization, fund transfer execution, and confirmation delivery. Each segment is handled by specialized system components with specific security protocols, isolating sensitive operations and reducing overall system vulnerability.

Inventive Principle:

Principle #1Segmentation

Data Source

PatentUS7856384B1Systems and methods for providing security in international money exchanges

Publication Date: 2010.12.21 VISA INTERNATIONAL SERVICE ASSOCIATION

AI summary

Disclosed are systems and methods for effecting international online financial transactions between individuals or between individuals and entities such as banks, merchants and other companies. In one embodiment, one aspect of the invention is to provide an authentication system and security monitoring system to detect and prevent fraud. User usage patterns may also be identified and a user risk profile developed. In another embodiment, transactional amount limits may be updated based on the user risk profile. In addition, the user risk profile may be updated based on credit and debt information for the user.