P2P Payment System Processing Physical Checks for Non-Users

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Solution Overview

Problem

Traditional computer-implemented account-to-account payment systems restrict transactions to registered users only, preventing non-users from participating in transactions using these systems.

Innovation Solution

Enabling non-users to participate in transactions by processing data from physical negotiable instruments, such as checks, through a computer-implemented P2P payment system, which includes receiving transaction data, processing it for execution, and transmitting notifications regarding the transaction.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If the payment system restricts transactions to registered users only, then system security and control are maintained, but the system's user base and transaction capabilities are limited

Engineering Contradiction:

Improveuser base expansionVSAvoidsystem control complexity

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent introduces an intermediary processing layer that handles physical negotiable instruments (checks) by capturing images, performing OCR extraction, and converting them into digital transaction data. This intermediary mechanism enables non-users to participate in transactions without requiring them to register for the payment system, thus expanding the user base while maintaining system control through the intermediary processing step

Inventive Principle:

Principle #24Intermediary (Mediator)

2Adaptability or versatility

If physical negotiable instruments are processed through the payment system, then non-users can participate in transactions, but the processing complexity and time required increase

Engineering Contradiction:

Improvetransaction capabilityVSAvoidtransaction processing time

Core Design Contradiction:

Adaptability or versatilityVSLoss of time

Solution Approach 1:

The patent replaces manual processing of physical negotiable instruments with automated optical character recognition (OCR) technology. The system captures images of checks using a mobile device camera and automatically extracts transaction data through OCR, eliminating the need for manual data entry and significantly reducing processing time while enabling non-users to participate in transactions

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The patent creates a digital copy of the physical negotiable instrument by capturing an image of the check and extracting its data through OCR. This digital replica contains all necessary transaction information (amount, payer, payee, account details) and can be processed electronically within the payment system, replacing the need to physically handle and process the original paper instrument

Inventive Principle:

Principle #26Copying

3Measurement precision

If optical character recognition is used to process negotiable instrument data, then data extraction accuracy improves, but processing complexity increases

Engineering Contradiction:

Improvedata extraction accuracyVSAvoidprocessing system complexity

Core Design Contradiction:

Measurement precisionVSDevice complexity

Solution Approach 1:

The patent integrates multiple functions into a single mobile application: camera capture, optical character recognition, data validation, and transaction initiation. This universal platform performs all necessary operations for processing physical negotiable instruments within one integrated system, managing complexity through consolidation rather than requiring separate specialized systems for each function

Inventive Principle:

Principle #6Universality (Multi-functionality)

Applied Scientific Principles

This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.

Function Achieved in This Case

Facilitates transactions between registered and non-registered users by allowing the use of physical negotiable instruments, expanding the system's user base and enhancing transaction capabilities.

Implementation Method 1

the negotiable instrument data is provided based on an image of the negotiable instrument, and processing the image using optical character recognition (OCR)

Methodology Applied

Scientific EffectOptical character recognition:

Data Source

PatentUS10902396B1Split-the-bill feature in real-time account-to-account payments

Publication Date: 2021.01.26 UNITED SERVICES AUTOMOBILE ASSOCIATION (USAA)

AI summary

Implementations of the present disclosure include receiving transaction data for a transaction that is to be executed between a first user and a second user by a computer-implemented P2P payment system, the transaction data including negotiable instrument data provided from a physical negotiable instrument that is provided by the second user and that is to be used in the transaction, the first user being a user of the P2P payment system, and the second user being a non-user of the P2P payment system, processing, the transaction data to execute the transaction, and transmitting a notification to at least one of the first user and the second user, the notification providing information regarding the transaction.