Non-reversible Payment Processing System

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Solution Overview

Problem

Online merchants face risks and high processing costs with large value transactions, leading them to limit credit card and balance account transactions and prefer bank wire transfers instead.

Innovation Solution

Implementing a non-reversible payment processing system that allows senders to make payments directly to receivers without the risk of disputes, using a payment processing subsystem that disables credit card funding sources and processes payments through a clearing house, reducing the risk for providers and enabling lower transaction costs.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Productivity

If merchants accept large value credit card transactions, then transaction volume increases, but risk of reversal or dispute increases and processing costs increase

Engineering Contradiction:

Improvetransaction volumeVSAvoidtransaction finality

Core Design Contradiction:

ProductivityVSReliability

Solution Approach 1:

The system changes the parameter of payment reversibility by offering a non-reversible payment option for high-value transactions. This parameter change allows merchants to accept larger transactions without the risk of reversal, directly resolving the contradiction between transaction volume and transaction finality.

Inventive Principle:

Principle #35Parameter changes

2Productivity

If merchants accept large value credit card transactions, then transaction volume increases, but processing costs increase

Engineering Contradiction:

Improvetransaction volumeVSAvoidprocessing cost

Core Design Contradiction:

ProductivityVSLoss of energy

Solution Approach 1:

The system changes the payment parameter from reversible credit card to non-reversible wire transfer for high-value transactions. This parameter change reduces processing costs while enabling merchants to accept larger transaction volumes, resolving the contradiction between productivity and loss.

Inventive Principle:

Principle #35Parameter changes

3Loss of energy

If merchants use bank wire transfers for large value transactions, then processing costs decrease and risk decreases, but transaction convenience decreases

Engineering Contradiction:

Improveprocessing costVSAvoidtransaction convenience

Core Design Contradiction:

Loss of energyVSEase of operation

Solution Approach 1:

The system provides multiple payment options (reversible credit card, non-reversible wire transfer) within a single payment platform. This multi-functionality allows merchants to choose the appropriate payment type based on transaction value and risk tolerance, resolving the contradiction between cost efficiency and ease of operation.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Data Source

PatentUS8108278B2Non-reversible payment processing

Publication Date: 2012.01.31 PAYPAL INC

AI summary

Methods and system for non-reversible payment processing are described. In one embodiment, a request for non-reversible payment for a sender may be received. The request for non-reversible payment may include a payment amount and a payment receiver identifier. The payment receiver identifier may be associated with a payment receiver. A sender account of the sender may be decreased by the payment amount. A payment receiver account of the payment receiver may be increased by the payment amount. A notification of non-reversible payment may be provided to a payment receiver that the increasing of the payment receiver account by the payment amount is non-reversible based on the receiving of the request for non-reversible payment.