P2P Credit Card Repayment Routing for Timely Balance Settlement
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Solution Overview
Problem
Individuals face challenges in receiving timely repayments from friends using peer-to-peer (P2P) accounts for credit card transactions, leading to potential interest charges and awkwardness in requesting repayment, especially when splitting bills with multiple parties.
Innovation Solution
A system that integrates financial service providers with P2P systems for direct repayment processing, utilizing deep-linking technology to facilitate seamless transactions, apply repayments directly to credit card balances, and manage interest calculations based on final transaction amounts.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If a person uses their credit card for transactions with friends and waits for repayment via P2P accounts, then the transaction can be completed immediately, but the cardholder may be assessed interest charges or be late on credit card payment
Solution Approach 1:
The system performs preliminary actions by automatically initiating repayment requests through P2P accounts immediately after the transaction is completed. The financial service provider system proactively manages the repayment process before the cardholder needs to manually intervene, ensuring that repayment is pursued immediately rather than waiting for the cardholder to remember to request it.
Solution Approach 2:
The system implements feedback mechanisms by continuously monitoring the status of repayment requests and updating the cardholder on the repayment progress. The system provides notifications when repayment is received and applies it to the credit card balance, creating a closed-loop feedback system that ensures timely repayment tracking and application.
2Reliability
If a person manually transfers money from P2P account to primary banking account and then makes credit card payment, then repayment can be applied to the credit card, but the process takes a long time
Solution Approach 1:
The financial service provider system acts as an intermediary that directly connects the P2P account repayment funds to the credit card account. Instead of requiring the cardholder to manually transfer funds through their primary banking account, the system establishes a direct pathway where repayment received in the P2P account is automatically applied to the credit card balance, eliminating the time-consuming manual transfer step.
Solution Approach 2:
The system merges multiple functions into a single automated process: receiving repayment in the P2P account, transferring funds, and applying payment to the credit card are all combined into one automated workflow managed by the financial service provider system, eliminating the need for separate manual steps.
3Productivity
If a person keeps asking friends for repayment via P2P service systems, then repayment may be obtained, but it becomes rude and awkward
Solution Approach 1:
The system enables self-service by automatically managing the repayment collection process without requiring the cardholder to personally request repayment from friends. The financial service provider system autonomously sends repayment requests through the P2P service system and tracks incoming repayments, allowing the cardholder to collect repayment productively without the social awkwardness of direct requests.
Data Source
AI summary
Systems and methods for P2P transaction functionality include payment collection from a third party source. A system includes at least one processor and a storage medium storing instructions that, when executed by the one or more processors, cause the at least one processor to perform operations including receiving transaction information from a vendor where a card was used and analyzing the transaction information. The operations also include sending one or more requests for repayment to one or more P2P service systems, receiving repayment information, regarding one or more repayments, from the one or more P2P service systems and, based on the repayment information, applying the one or more repayments to the transaction performed on the card.