P2P Payment Routing Without Account Verification
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Solution Overview
Problem
Person-to-person (P2P) payment systems are cumbersome for recipients who do not have an account with the same bank or payment service as the sender, requiring lengthy verification processes and account establishment, which hinders adoption and efficiency, especially for small transactions.
Innovation Solution
A computer-implemented system that allows recipients to receive P2P payments without needing to open a new account or verify an existing one, by offering options such as depositing funds into an existing account, a transaction card account, a third-party P2P system, or a merchant electronic gift certificate, streamlining the payment process through electronic notifications and simplified account verification.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If the recipient enrolls for a P2P recipient account with the sender's bank or P2P payment service, then the recipient can receive payments, but the process becomes lengthy and complex requiring multiple verification steps
Solution Approach 1:
The patent segments the traditional account enrollment process into two distinct paths: (1) a simplified path for recipients who already have accounts with the sender's institution, and (2) a new enrollment path for recipients without accounts. This segmentation allows the system to apply different levels of verification complexity based on the recipient's existing account status, thereby reducing the burden on new recipients while maintaining security.
Solution Approach 2:
The patent implements preliminary action by pre-establishing account verification mechanisms and partnerships with third-party financial institutions before the payment transaction occurs. The system has pre-configured verification protocols and account validation processes in place, so when a recipient needs to enroll, the verification steps are already prepared and can be executed efficiently rather than requiring ad-hoc complex procedures.
2Reliability
If the recipient goes through the full account verification process including routing number and account number validation, then the account can be verified, but the process takes several business days
Solution Approach 1:
The patent introduces third-party financial institutions as intermediaries that facilitate faster account verification. Instead of relying solely on traditional multi-day verification processes, the system leverages partnerships with external financial institutions that can validate account information more quickly through their existing networks and protocols, thereby reducing verification time while maintaining reliability.
Solution Approach 2:
The patent changes the verification parameters by offering multiple verification methods with different time characteristics. The system allows recipients to choose from various verification options (such as instant electronic verification versus traditional mail verification), effectively changing the time parameter of the verification process while maintaining acceptable reliability levels through multiple validation checkpoints.
3Reliability
If the recipient must have checkbook and identify routing number and account number, then the account can be verified, but the process becomes prohibitively slow and involved for small payments
Solution Approach 1:
The patent implements universality by creating a multi-functional payment receipt system that can handle multiple types of recipient accounts and verification methods. The system is designed to work with both traditional bank accounts requiring routing and account numbers, as well as alternative payment methods and third-party platform accounts. This multi-functionality allows the system to adapt to different verification needs and speed requirements, optimizing the balance between accuracy and speed based on the specific transaction context.
4Reliability
If the P2P system performs account verification by depositing two small payments, then the account can be verified, but it takes a few business days for deposits to show up
Solution Approach 1:
The patent uses third-party financial institutions as intermediaries to accelerate the deposit verification process. Instead of relying on traditional bank processing times, the system leverages partnerships with external financial institutions that can validate account deposits more quickly through their existing rapid verification networks, reducing the time from deposit to verification confirmation while maintaining the reliability of the two-deposit validation method.
Data Source
AI summary
The invention relates to a computer-implemented system and method for sending a person to person (P2P) payment to a recipient, according to one example. The method may be conducted on a specially programmed computer system comprising one or more computer processors, mobile devices, electronic storage devices, and networks. The method may comprise the steps of: sending to the recipient electronically a notification of the payment from the sender, the notification including an amount of the payment; sending to the recipient electronically an indication of at least two of the following payment options: payment to a deposit account, payment to a transaction card account, payment to a third party P2P system, and payment in the form of a merchant electronic gift certificate; receiving from the recipient electronically a selection as to one of the payment options, including: (a) in the case of a deposit account, a routing number and account number, (b) in the case of a transaction card account, a card number, expiration date, and a card verification value (CVV), (c) in the case of a third party P2P system, an account identifier, or (d) in the case of a merchant electronic gift certificate, the merchant; and sending the payment electronically to the recipient via the recipient's selected payment option without requiring the recipient to open a new account or verify an existing account.