Modular Settlement Bus for Multi-Method Payment Routing

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Solution Overview

Problem

Existing settlement architectures in industries like insurance are inefficient, resource-intensive, and inflexible, requiring separate systems for each payment method and product, leading to complex record-keeping and difficulty in scaling or incorporating new payment methods and products.

Innovation Solution

A modular settlement distribution architecture with a resource routing (RR) computing device that functions as an input/output node to multiple settlement routes, using a settlement engine to process transactions through a channel-agnostic settlement bus and generate distribution messages based on resource channel indicators, simplifying infrastructure and enabling seamless integration of new payment methods and products.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If separate systems are used for each payment method and product, then accurate record-keeping is achieved, but system complexity and resource consumption increase significantly

Engineering Contradiction:

Improverecord-keeping accuracyVSAvoidsystem complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent implements a universal settlement bus that can handle multiple payment methods (ACH, credit cards, debit cards, checks) and various insurance products through a single infrastructure. The settlement engine dynamically routes transactions based on payment method identifiers, allowing one system to perform multiple functions that previously required separate dedicated systems for each payment type and product category.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The patent segments the settlement process into distinct modular components: the settlement bus for message routing, the settlement engine for processing logic, and payment method-specific handlers. This segmentation allows the system to maintain complexity management while handling diverse payment methods, as each component has a specific responsibility and can be independently configured or updated.

Inventive Principle:

Principle #1Segmentation

2Manufacturing precision

If separate systems are used for each payment method, then processing accuracy is maintained, but scalability and flexibility to incorporate new payment methods deteriorate

Engineering Contradiction:

Improveprocessing accuracyVSAvoidscalability

Core Design Contradiction:

Manufacturing precisionVSAdaptability or versatility

Solution Approach 1:

The settlement bus is designed as a universal infrastructure that can accommodate any payment method through standardized message routing. When a new payment method is introduced, the system can handle it by adding routing rules and handlers without modifying the core bus architecture, enabling both accurate processing and easy scalability.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The system employs dynamic routing where the settlement engine determines the appropriate settlement route based on real-time transaction characteristics and payment method identifiers. This dynamic approach allows the system to adapt to new payment methods by updating routing logic rather than requiring static, pre-configured dedicated systems for each payment type.

Inventive Principle:

Principle #15Dynamics

3Reliability

If dedicated infrastructure is built for each payment method, then processing reliability is improved, but resource efficiency and cost-effectiveness worsen

Engineering Contradiction:

Improveprocessing reliabilityVSAvoidresource efficiency

Core Design Contradiction:

ReliabilityVSUse of energy by moving object

Solution Approach 1:

The patent merges multiple payment method processing infrastructures into a single shared settlement bus and settlement engine. By combining previously separate ACH, credit card, debit card, and check processing systems into one unified infrastructure, the patent achieves resource efficiency through shared components while maintaining processing reliability through dedicated handling logic for each payment type within the unified system.

Inventive Principle:

Principle #5Merging (Combining)

4Measurement precision

If complex record-keeping systems are implemented for multiple payment methods, then transaction tracking accuracy is improved, but system operation complexity increases

Engineering Contradiction:

Improvetransaction tracking accuracyVSAvoidoperation complexity

Core Design Contradiction:

Measurement precisionVSEase of operation

Solution Approach 1:

The settlement bus acts as an intermediary that standardizes message routing between different payment methods and the settlement engine. This intermediary layer simplifies operation by providing a unified interface for tracking all transactions, regardless of payment method, while maintaining accurate records through standardized message formats and routing rules that translate diverse payment transactions into consistent tracking data.

Inventive Principle:

Principle #24Intermediary (Mediator)

Data Source

PatentUS20250335895A1Modular settlement distribution architecture and methods

Publication Date: 2025.10.30 STATE FARM MUTAL AUTOMOBILE INSURANCE COMPANY

AI summary

A modular settlement distribution architecture includes an input node to a plurality of parallel settlement routes and an output node from the plurality of settlement routes. A resource routing (RR) computing device of the modular settlement distribution architecture includes a settlement engine configured to control settlement distribution messages to the settlement routes via a settlement engine as the input node. The RR computing device and/or a distribution and reporting (DR) module separate from the settlement engine is configured to control receipt of confirmation messages from the settlement routes as the output node.