Fund Transfer System Using Distributed Directory Correlation
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Solution Overview
Problem
Current payment systems rely heavily on cash, checks, credit cards, and debit cards, lacking efficient and enhanced mechanisms for transferring funds between individuals and businesses, particularly across different banking institutions.
Innovation Solution
A fund transfer method and system that receives sender information, processes fund transfer requests using identifiers like email addresses or phone numbers, and sends funds between accounts within or across banks by accessing and correlating information from directory systems maintained by both the sender's and recipient's financial institutions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If traditional payment systems (cash, checks, credit cards) are used, then payment functionality is provided, but payment efficiency and convenience are limited
Solution Approach 1:
The patent replaces traditional mechanical payment systems (cash handling, physical checks) with an electronic network-based system that uses computer processors to automatically correlate identifiers with bank accounts and execute fund transfers, significantly improving both efficiency and convenience
Solution Approach 2:
The patent introduces an intermediary network system that acts as a mediator between senders and recipients, automatically matching identifiers (email, phone numbers) with bank account information and facilitating seamless fund transfers without requiring direct interaction with banking systems
2Ease of operation
If fund transfer requests use traditional account numbers, then precise identification is achieved, but user convenience and ease of entry are reduced
Solution Approach 1:
The patent creates a correspondence table that copies and stores multiple identifiers (email addresses, phone numbers, usernames) as alternatives to traditional account numbers, allowing users to enter any of these easier-to-remember identifiers while the system accurately matches them to the correct bank account
Solution Approach 2:
The patent makes the identification system universal by accepting multiple types of identifiers (email, phone number, username, account number) that can all function as recipient identifiers, making the system more convenient and adaptable to different user preferences
3Speed
If a centralized directory system is used to store account information, then fast access is achieved, but system complexity and security risks increase
Solution Approach 1:
The patent segments the centralized directory system into distributed database tables stored at individual bank computers, with each bank maintaining its own copy of the correspondence table for its customers, reducing single-point complexity and security risks while maintaining fast local access
4Adaptability or versatility
If fund transfers occur between different banks, then payment versatility is improved, but transfer complexity and processing time increase
Solution Approach 1:
The patent creates a universal correspondence table structure that is used consistently across all banks, allowing the same identification and transfer mechanism to work both within single banks and between different banks, simplifying interbank transfer processing
Data Source
AI summary
Systems, methods for payment processing performed by one or more processors of a payment service computer system. One method includes receiving a fund transfer request from a recipient identifying a sender and a fund transfer amount. The method further includes identifying a financial institution associated with the sender. The method further includes determining the financial institution is not associated with the payment system. The method further includes selecting an authentication process for the recipient based on a level of risk. The method further includes performing the authentication process based on the level of risk, the authentication process including prompting the sender to provide information regarding the sender. The method further includes verifying accuracy of the information regarding the sender by scraping the information maintained by the financial institution using the access credentials and sending the fund transfer amount to the recipient.