ISO 20022 RFP Decomposition for Real-Time Payment Reconciliation

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Solution Overview

Problem

Existing payment systems lack real-time reconciliation capabilities, leading to delays and errors in processing and updating financial records, particularly for small businesses using ISO 20022-compliant RFP messages.

Innovation Solution

A computer-implemented system that decomposes ISO 20022-compliant RFP messages to extract relevant data, performs real-time reconciliation, and updates accounting or inventory-management applications without merchant involvement, using a FI computing system to automate the reconciliation process.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Speed

If real-time payment processing is implemented, then transaction speed is improved, but reconciliation accuracy deteriorates due to lack of real-time verification

Engineering Contradiction:

Improvetransaction speedVSAvoidreconciliation accuracy

Core Design Contradiction:

SpeedVSMeasurement precision

Solution Approach 1:

The system implements real-time feedback loops where payment notification data is immediately sent to counterparties, their responses are received and processed, and reconciliation status is continuously updated and communicated back to all parties. This closed-loop feedback mechanism ensures accurate reconciliation while maintaining real-time processing speeds.

Inventive Principle:

Principle #23Feedback

Solution Approach 2:

The FI computing system acts as an intermediary that receives payment notification data from the first counterparty, manages the communication with the second counterparty, and performs the reconciliation process. This intermediary role coordinates the real-time exchange between parties while maintaining data integrity and reconciliation accuracy.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Measurement precision

If manual reconciliation processes are used, then data verification accuracy is improved, but processing time increases causing delays

Engineering Contradiction:

Improvedata verification accuracyVSAvoidprocessing time

Core Design Contradiction:

Measurement precisionVSLoss of time

Solution Approach 1:

The system enables automated self-service reconciliation where the FI computing system automatically receives payment notification data, compares it against existing records, obtains counterparty responses, and updates reconciliation status without requiring manual intervention. This automated self-service process maintains verification accuracy while dramatically reducing processing time.

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The patent replaces manual mechanical reconciliation processes with automated electronic data processing. The FI computing system uses automated algorithms to verify payment data, exchange notifications with counterparties, and update records, substituting human manual verification with automated computational processes that are both fast and accurate.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Reliability

If real-time notification and response exchange is implemented, then reconciliation completeness is improved, but system complexity increases

Engineering Contradiction:

Improvereconciliation completenessVSAvoidsystem complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The FI computing system performs multiple functions within a single unified platform: receiving payment notification data, managing counterparty communications, performing reconciliation operations, and updating records. This multi-functional approach ensures complete reconciliation processing while managing system complexity through consolidation rather than proliferation of separate systems.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Data Source

PatentUS20250285100A1Real-time reconciliation processing based on structured messaging data

Publication Date: 2025.09.11 THE TORONTO DOMINION BANK

AI summary

The disclosed embodiments include computer-implemented systems and processes that perform reconciliation processing in real-time based on structured messaging data. For example, an apparatus may receive elements of decomposed message data that include a first parameter value of a data exchange involving first and second counterparties, and that characterize a real-time payment requested from the second counterparty by the first counterparty. The apparatus may transmit a notification to a first device operable by the second counterparty and receive a response to the notification from the first device that includes a second parameter value of the data exchange. Based on at least the first and second parameter values, the apparatus may perform operations that reconcile the response with the elements of decomposed message data, and transmitting data indicative of an outcome of the reconciliation to a second device operable by the first counterparty for presentation within a digital interface.