Installment Plan Management via Centralized Network Computer
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing installment plans require extensive resource analysis and processing, involving multiple transactions and entities, which is time-consuming and inefficient, particularly in processing installment payments for small-to-medium businesses, due to the need for multiple communications across various networks.
Innovation Solution
A computer-implemented method and system where a network computer manages installment plans by determining eligibility, creating temporary accounts, and processing transactions centrally, reducing the need for multiple communications and entities involved in the payment processing.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If a new credit line is opened for each installment plan, then the customer can access installment financing, but the process requires extensive creditworthiness analysis and consumes significant time and resources
Solution Approach 1:
The system performs creditworthiness analysis and installment plan approval in advance, before the actual purchase transaction. Customers are pre-approved for installment plans based on their credit profile, so when they make a purchase, the installment option is already validated and ready to be applied immediately, eliminating the need for real-time credit analysis.
Solution Approach 2:
A single credit line is established that can be reused across multiple transactions and installment plans. Instead of creating separate credit lines for each installment agreement, the system creates one universal credit facility that serves multiple purposes and transactions, reducing the repetitive credit analysis workload.
2Ease of operation
If multiple transactions are processed for installment payments, then the payment schedule can be established, but the computing power, time, and storage requirements are multiplied
Solution Approach 1:
Multiple installment payment transactions are consolidated into a single credit line account. Instead of processing each installment as a separate transaction requiring individual authorization and settlement, the system merges them into one overarching credit agreement, significantly reducing the number of processing steps and computational requirements.
Solution Approach 2:
The system introduces an intermediary processing layer that manages installment schedules and automatically handles the breakdown of a single purchase into multiple payment installments. This intermediary layer centralizes the complexity of schedule management, reducing the burden on the underlying transaction processing system.
3Reliability
If risk is distributed to another party in the transaction, then the offering party can reduce its exposure, but additional parties and communication networks are required
Solution Approach 1:
The system extracts the risk management function from the transaction processing flow and handles it separately through pre-approval credit assessments. By separating the risk evaluation (creditworthiness analysis) from the transaction execution, the system reduces risk exposure without requiring multiple parties to be involved in each transaction.
Data Source
AI summary
A method includes receiving, by a network computer from a resource provider computer, a settlement request associated with an installment plan and a total amount associated with a user account. The network computer transmits, to the resource provider computer, a settlement response associated with the installment plan and the total amount. The network computer configures an installment record, the installment record comprising a plurality of installment times. Based on occurrence of an installment time, of the plurality of installment times in the installment record, the network computer transmits, to an authorizing computer, installment data associated with the installment record to an authorizing computer, wherein the authorizing computer transmits an installment payment request to a user responsive to receiving the installment data from the network computer.