Location-Token Virtual Payment Arrangements for Soft Credit Issuance
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Solution Overview
Problem
Traditional loan programs involve manual underwriting and hard credit checks, which negatively impact credit scores and are inefficient, while physical payment methods like cards and cash are cumbersome and insecure.
Innovation Solution
Implementing automated soft credit checks and virtual payment cards stored in electronic wallets, using unique tokens for each geographic location to facilitate secure and efficient banking arrangements.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If manual underwriting and hard credit checks are used, then creditworthiness assessment is thorough, but credit scores are negatively impacted and efficiency is reduced
Solution Approach 1:
The patent uses soft credit inquiries as a copy or alternative to hard credit inquiries. Soft inquiries allow the system to assess creditworthiness without creating a permanent record on the consumer's credit report, thus avoiding the negative impact on credit scores while still providing a thorough assessment through automated underwriting algorithms that analyze multiple data points.
Solution Approach 2:
The patent replaces the traditional mechanical manual underwriting process with an automated electronic system. The automated underwriting system uses algorithms to process credit applications, perform soft credit inquiries, and make credit decisions without human intervention, significantly improving efficiency while maintaining thoroughness through comprehensive data analysis.
2Ease of operation
If physical payment cards and cash are used, then transactions can be made, but security is compromised and process complexity increases
Solution Approach 1:
The patent replaces physical payment cards with virtual payment cards stored in electronic wallets. These virtual cards are digital copies that can be stored securely on mobile devices and transmitted electronically, eliminating the need for physical cards and cash while improving security through encryption and remote control capabilities.
Solution Approach 2:
The patent substitutes the mechanical physical payment system with an electronic digital payment system. Virtual payment cards use electronic encryption and digital authentication mechanisms to secure transactions, replacing the physical handling and security risks associated with cash and plastic cards.
3Adaptability or versatility
If traditional loan programs are used, then banking arrangements can be provided, but system complexity and manual intervention are high
Solution Approach 1:
The patent implements a self-service automated underwriting system that handles credit applications without manual intervention. The system automatically performs soft credit inquiries, processes applications through algorithms, and makes credit decisions independently, reducing system complexity by eliminating manual underwriting steps while maintaining adaptability through configurable algorithm parameters.
Data Source
AI summary
Systems, methods, and computer readable media for generating a one-time banking arrangement for use with an entity at a unique geographic location are disclosed. The systems and methods may involve receiving a unique token; receiving a first information associated with a requestor; performing, using the first information associated with the requestor, a first inquiry; generating a variety of arrangement options; receiving an input from the requestor; performing a second inquiry; and generating a one-time arrangement based on the input from the requestor and the second inquiry. Methods for obtaining and using a one-time arrangement with an entity at a unique geographic location are also disclosed. The methods may involve providing a unique token; providing an information associated with a requestor; receiving a variety of arrangement options; providing an input; receiving a one-time arrangement; and using the one-time arrangement to make a purchase with the entity at the unique geographic location.