Electronic Payment System with Instant Credit Authorization
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Solution Overview
Problem
Current payment systems are inadequate for facilitating commercial transactions between business entities and merchants, particularly in remote or online environments, as they lack the functionality to establish credit-based relationships and require extensive paper-based documentation, and do not provide instant credit options.
Innovation Solution
A computer-implemented method and system that enables business entities to initiate transactions with merchants, obtain and communicate necessary data sets, establish a credit-based relationship with a provider, and engage in transactions electronically or online, allowing for instant credit at the point-of-sale.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If traditional payment systems are used for commercial transactions, then transaction security is maintained through established credit processes, but transaction efficiency is reduced due to extensive paper-based documentation and lack of instant credit
Solution Approach 1:
The patent replaces the mechanical paper-based documentation system with an electronic data transmission system. Business entities transmit data sets electronically to merchants and providers, eliminating the need for physical paper exchange and manual processing, thereby significantly improving transaction efficiency and reducing time loss.
Solution Approach 2:
The patent implements preliminary action by establishing credit-based relationships and exchanging necessary data sets before the actual transaction occurs. This allows for instant credit approval at the point-of-sale without requiring extensive documentation during the transaction itself, thus improving productivity while maintaining security.
2Reliability
If extensive paper-based documentation is required for commercial transactions, then transaction completeness is ensured, but device complexity and operational difficulty increase
Solution Approach 1:
The patent uses electronic data sets as digital copies of traditional documentation. These data sets contain all necessary transaction information in a structured format that can be transmitted, stored, and processed electronically, maintaining transaction completeness while eliminating the complexity of physical document management.
Solution Approach 2:
The patent creates a universal electronic data transmission system that can handle multiple types of commercial transactions through a single standardized process. The system accommodates various business entities, merchants, and credit providers using the same electronic framework, reducing operational difficulty while ensuring transaction completeness through standardized data fields.
3Speed
If traditional credit processes are used, then credit verification is thorough, but transaction speed is reduced due to sequential processing requirements
Solution Approach 1:
The patent performs credit verification in advance by establishing credit-based relationships between business entities and providers before transactions occur. The provider receives and processes data sets to determine creditworthiness beforehand, enabling instant credit approval during the actual transaction without compromising verification accuracy.
Solution Approach 2:
The patent introduces the credit provider as an intermediary that handles credit verification separately from the transaction process. The provider receives data sets from merchants and business entities, performs thorough credit checks, and returns authorization decisions, allowing the actual transaction to proceed rapidly without sequential processing delays.
Data Source
AI summary
A computer-implemented method of engaging in a transaction between a merchant and a business entity. The method includes: initiating a transaction by the business entity with a merchant; obtaining, by the merchant, a business entity data set including at least one data field; communicating an authorization request from the merchant to a provider, the request including at least one data field from the business entity data set and at least one field from a transaction data set; establishing a credit-based relationship between the provider and the business entity; communicating an authorization response from the provider to at least one of the merchant and the business entity; and engaging in the transaction between the provider and the business entity based at least in part upon the established credit-based relationship. A system and apparatus are also disclosed.