International Negotiable Instrument Payment System
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Solution Overview
Problem
Existing online payment systems face challenges when transferring funds in different currencies, particularly due to unfavorable exchange rates and lengthy holds on foreign money orders, which hinder international transactions and limit profits in cross-border commerce.
Innovation Solution
An international negotiable instrument payment system that allows payors to select a payment currency and drawee bank nationality, generating a negotiable instrument that can be delivered to payees in their preferred currency and jurisdiction, with options for funding through various handlers and interfaces, including online and retail locations.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a foreign money order is cashed through a foreign bank, then the payment can be completed, but the exchange rate is unfavorable and service fees are added
Solution Approach 1:
The patent introduces an intermediary payment system that issues money orders in the payee's local currency through a local bank, eliminating the need for foreign banks to cash foreign money orders. This intermediary approach avoids unfavorable exchange rates and high service fees by using local currency and local banking infrastructure.
Solution Approach 2:
The system creates a local copy of the payment instrument by issuing a money order in the payee's local currency through a local bank, rather than requiring the original foreign money order to be cashed abroad. This local copy eliminates currency conversion costs and international banking fees.
2Reliability
If a foreign bank cashes a foreign money order, then the payment is processed, but a hold is placed on funds availability for months
Solution Approach 1:
The patent uses a local bank as an intermediary to issue the money order in local currency, which eliminates the lengthy clearance process associated with foreign banks. Local banks can validate and cash their own currency instruments immediately, reducing hold time from months to minutes.
3Ease of operation
If traditional online payment systems are used for international transactions, then payments can be made, but currency conversion fees and hold times limit profits
Solution Approach 1:
The system creates local currency copies of payment instruments through local banks, eliminating the need for international currency conversion. This local copying approach maintains ease of online payment operation while eliminating foreign exchange fees and reducing transaction costs.
Data Source
AI summary
According to the invention, a method for purchasing a negotiable instrument from an online payment system by a payor to compensate a payee in relation to a listing on a vending site is disclosed. In one step, a payment currency and/or a drawee bank nationality is selected for the online payment system to use when issuing the payment instrument. Payment information is received from the payor and comprises at least two of: a payee identifier, a payee name, a payee address, and a payment amount. A money handler associated with the payor is debited for at least the payment amount. The payment instrument payable to the payee name for the payment amount is generated. That payment instrument is based on at least one of the payment currency and the drawee bank nationality. The payment currency is different from a currency used by the money handler. The payment instrument is delivered to the payee.