Global Transaction Router for Cross-Network Payment Routing
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Solution Overview
Problem
Financial institutions face challenges in making real-time payments across different real-time payment networks due to membership limitations and varying network speeds, costs, and reliability, with unclear preferences for account holders.
Innovation Solution
A supernetwork system that connects multiple real-time payment networks, utilizing a global transaction router to optimize payment routing based on account holder preferences and network factors such as speed, cost, reliability, and incentives.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If financial institutions join multiple real-time payment networks to increase payment options and ability, then payment versatility and reliability improve, but system complexity and operational difficulty increase
Solution Approach 1:
The patent introduces a payment routing system that acts as an intermediary between financial institutions and multiple real-time payment networks. This routing system consolidates the complexity of managing multiple network memberships by providing a unified interface that automatically selects appropriate networks based on account holder preferences, thereby improving payment versatility without increasing operational complexity for financial institutions.
2Reliability
If financial institutions use multiple real-time payment networks to improve payment reliability and options, then payment reliability improves, but the difficulty of managing and selecting optimal routes increases
Solution Approach 1:
The patent implements preliminary action by having account holders pre-specify their payment preferences (such as preferred networks, speed priorities, or cost considerations) before actual payments are made. The payment routing system stores these preferences and automatically applies them when routing payments, eliminating the real-time difficulty of selecting optimal routes across multiple networks while maintaining high reliability through pre-established criteria.
3Adaptability or versatility
If real-time payments are routed across multiple different real-time payment networks, then payment versatility improves, but the clarity and simplicity of route selection for account holders decreases
Solution Approach 1:
The patent applies self-service by enabling account holders to configure their own payment preferences and routing criteria directly through the system. Account holders can specify which networks they prefer, set priorities for speed versus cost, and define other parameters according to their needs. The system then automatically applies these self-defined preferences to route payments, providing versatility while maintaining simplicity and clarity for account holders.
Data Source
AI summary
Disclosed are various embodiments for optimal routing of payments. A global transaction router hosted by a supernetwork instance can receive a payment request, where the payment request specifies an identifier for a recipient institution. The global transaction router can identify a plurality of routes from the global transaction router to a plurality of respective destination network hubs associated with the recipient institution. The global transaction router can calculate a score for individual routes of the plurality of routes, where the score is based on a plurality of routing factors. The routing factors can be weighted based at least in part on routing preferences included with the payment request. The global transaction router can select one of the plurality of routes based on the score and cause the payment request to be provided to a destination network hub on the one of the plurality of routes.