Merchant Platform Account Payment Flow Control

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Solution Overview

Problem

Merchants face challenges in managing payment flows and user experiences when using third-party commerce systems, as these systems typically allow only one-directional fund flows from cardholders to platforms and then to merchants, limiting control and causing poor user experiences due to redirects and complex transaction handling.

Innovation Solution

The system enables the creation of a merchant platform account that can perform a single charge from a customer and subsequently create multiple transfers to different connected accounts, allowing for sub-portions of the proceeds to be transferred to each account, thereby facilitating more complex transaction flows and improving user experience.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Device complexity

If merchants use third-party payment systems to minimize infrastructure investment, then device complexity is reduced, but control over user experience and payment flow is lost

Engineering Contradiction:

Improvepayment infrastructureVSAvoiduser experience control

Core Design Contradiction:

Device complexityVSEase of operation

Solution Approach 1:

The system segments the payment flow into distinct components: charge creation, fund holding, and transfer operations. The merchant platform account can create charges and then separately initiate transfers to connected accounts, allowing granular control over each step of the payment process while using third-party infrastructure.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The system introduces dynamic control by allowing the merchant platform account to decide when and how to transfer funds after creating a charge. The transfer amounts and timing are flexible and can be adjusted based on business needs, enabling dynamic payment flow management within the third-party system constraints.

Inventive Principle:

Principle #15Dynamics

2Ease of manufacture

If third-party systems handle payments to simplify implementation, then ease of manufacture is improved, but transaction flow flexibility deteriorates

Engineering Contradiction:

Improvesystem implementationVSAvoidtransaction flow

Core Design Contradiction:

Ease of manufactureVSAdaptability or versatility

Solution Approach 1:

The merchant platform account serves multiple functions: it acts as both the charge creator and the transfer initiator. This multi-functionality allows a single account type to handle complex payment scenarios including marketplaces, on-demand economy platforms, and multi-vendor transactions, all within the third-party system framework.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The merchant platform account acts as an intermediary between the customer's charge and the final connected accounts. It receives funds from charges and then distributes them to appropriate connected accounts, enabling flexible multi-party transaction flows without requiring merchants to build their own payment infrastructure.

Inventive Principle:

Principle #24Intermediary (Mediator)

3Ease of operation

If merchants create custom payment infrastructure to gain control, then user experience control is improved, but device complexity and investment increase

Engineering Contradiction:

Improvepayment flow controlVSAvoidcomputing infrastructure

Core Design Contradiction:

Ease of operationVSDevice complexity

Solution Approach 1:

The merchant platform account enables self-service payment management by allowing merchants to create charges and initiate transfers using their own credentials and API calls. The system provides the tools for merchants to autonomously manage their payment flows without requiring custom infrastructure or deep technical integration work.

Inventive Principle:

Principle #25Self-service

4Device complexity

If traditional marketplace systems flow funds unidirectionally, then system simplicity is maintained, but ability to handle complex transactions deteriorates

Engineering Contradiction:

Improvefund flow structureVSAvoidmulti-directional transfers

Core Design Contradiction:

Device complexityVSAdaptability or versatility

Solution Approach 1:

The system inverts the traditional payment flow by allowing the merchant platform account to initiate transfers after receiving charges, rather than funds automatically flowing from customer to merchant. This reversal enables complex multi-party transactions where the platform controls fund distribution to multiple connected accounts based on business logic.

Inventive Principle:

Principle #13The other way round (Inversion)

Data Source

PatentUS12314916B2Systems, methods, and apparatuses for facilitating transfers between user commerce accounts associated with a merchant of a commerce platform

Publication Date: 2025.05.27 STRIPE LLC

AI summary

An embodiment may receive a transaction from an account associated with a user; associate a transfer group parameter with the transaction; create a set of transfers to a set of connected accounts using the transfer group parameter, a secret key, and a single-use token, the token associated with a first system and generated using information from the user, wherein the set of transfers is identifiable by the transfer group parameter and linked together for tracking a service associated with the transfer group parameter and the set of transfers; in response to a determination that the secret key is valid and is associated with a second system, execute the transaction using the single-use token and the secret key; and transmit a portion of the set of transfers to each account of the set of connected accounts to perform the service associated with the transfer group parameter and the set of transfers.