Electronic Fund Transfer System with Spending Category Control
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Conventional methods for gifting money are not fast or efficient, as they often require purchasing and delivering physical gift cards or direct bank account deposits, which can be cumbersome and lack control over spending categories, and may involve additional cards that can be lost or stolen.
Innovation Solution
A method where a payor registers a payee's payment card with a service provider, transfers an initial amount of money, and specifies a spending category, allowing automatic transfers to the payee's account upon qualified purchases matching the category, without requiring additional cards or bank information, and enabling notifications to the payee.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If physical gift cards are used to transfer money, then the giftor can control spending categories, but the process is slow and requires purchasing and delivering physical cards
Solution Approach 1:
The patent replaces the mechanical physical gift card system with an electronic money transfer system. Instead of physically purchasing and delivering cards, the system uses electronic fund transfers initiated by the giftor and automatically deposited into the giftee's bank account, eliminating delivery time while maintaining spending controls through electronic authorization parameters
Solution Approach 2:
The patent introduces an intermediary processing system that acts as a mediator between the giftor and giftee. This intermediary system handles the electronic transfer process, verifies spending categories, and automates the fund deposition, thereby enabling fast electronic transfers while preserving the giftor's ability to control how the money is spent
2Loss of time
If direct bank account deposits are used to transfer money, then the process is fast, but the giftor cannot control how the giftee spends the money
Solution Approach 1:
The patent applies preliminary action by having the giftor pre-specify spending categories and authorization parameters before the money is transferred. The intermediary system stores these preferences and automatically applies them when processing the deposit, enabling both fast electronic transfer and post-transfer spending control without requiring real-time intervention
3Adaptability or versatility
If physical gift cards are given to recipients, then spending control is maintained, but the cards are prone to loss or theft
Solution Approach 1:
The patent replaces the physical gift card with an electronic authorization system linked to the giftee's existing bank account. Instead of a physical card that can be lost or stolen, the system uses electronic credentials and authorization codes that can be remotely managed, revoked, or reset by the giftor, thereby eliminating the security risks of physical cards while maintaining spending control
Data Source
AI summary
A method to transfer money to a payee's payment card account, without requiring an additional payment card or without acquiring a payee's payment card information is disclosed. A payee registers a payment card with a service provider. The payment card is associated with a payment card account. A payor transfers an initial amount of money to the service provider to be given to the payee, when payee uses the registered payment card for a specified spending category. The service provider stores the money until the payee uses the registered payment card to make a qualified purchase.