Payment Aggregation Server for Transaction Settlement
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Solution Overview
Problem
Traditional payment processing systems rely on complex communications among multiple entities, leading to high fees for merchants and delayed payment settlements, which burden consumers and hinder timely payment receipt for merchants.
Innovation Solution
A system and method for data aggregation and efficient routing of payments, allowing real-time transaction processing, aggregation of outstanding amounts based on preset time periods, and direct transmission between accounts, reducing intermediaries and fees, while ensuring secure and timely payment settlements.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional acquirer processors are used to process payment transactions, then payment processing can be performed through established channels, but processing fees are substantially high and payment delivery is delayed
Solution Approach 1:
The patent extracts the payment processing function from the traditional multi-entity acquirer processor system and consolidates it into a single payment processing server. This server directly communicates with both the consumer's issuing bank and the merchant's acquiring bank, eliminating the need for complex intermediary communication channels while maintaining reliable payment processing through direct bank-to-bank transfers.
2Ease of manufacture
If acquirer processors are used for payment settlement, then transactions can be processed through established infrastructure, but fees are high due to pass-through charges from card-issuing banks and card networks
Solution Approach 1:
The patent introduces a payment processing server as a new intermediary that operates between the consumer's issuing bank and the merchant's acquiring bank. This server enables direct bank-to-bank transfers, bypassing the traditional card network intermediaries (Visa, MasterCard, etc.) that charge high pass-through fees. The server uses standardized protocols (ISO 8583, SWIFT, ACH) to facilitate direct settlements, significantly reducing transaction costs.
3Reliability
If complex communication channels involving acquirer processors are used, then payment transactions can be processed through multiple entities, but payment delivery timing is delayed
Solution Approach 1:
The payment processing server performs preliminary actions by pre-establishing communication channels and protocols with both issuing and acquiring banks. The server maintains ready-to-use communication pathways using standardized protocols (ISO 8583 for card transactions, SWIFT for wire transfers, ACH for automated clearing house transfers), enabling immediate payment delivery without the delays associated with ad-hoc multi-entity communication coordination.
Data Source
AI summary
Systems and methods are disclosed for data aggregation and efficient routing of the aggregated data for the settlement of payments. The method includes receiving, in real-time, transactions associated with an account of a registered user. The outstanding amount associated with transactions is aggregated based on a first preset time period. The payments for the aggregated outstanding amount are transmitted from a settlement account to an account of a merchant based on the first preset time period and/or a pre-determined total outstanding amount threshold. The transmitted payments are aggregated based on a second preset time period. The amount equivalent to the aggregated transmitted payments is transmitted from the account associated with the registered user to the settlement account based on the second preset time period. A user interface is then generated in devices of the registered user and merchant.