Payment Decision System for Cost-Benefit Optimization
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Solution Overview
Problem
Customers often select payment options for financial transactions without fully considering the costs and benefits associated with each option, leading to suboptimal choices due to memory limitations and complex contractual provisions.
Innovation Solution
A method and system that identify and process financial transactions by analyzing multiple payment options linked to a payer's financial accounts, obtaining cost and benefit data, and selecting a preferred option based on this information to facilitate optimal payment decisions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If customers manually select payment options based on memory of contract provisions, then the selection process is simple, but the accuracy of optimal payment choice deteriorates
Solution Approach 1:
The patent introduces a payment decision support system as an intermediary between the customer and the payment selection process. This system automatically retrieves contract provisions, calculates costs and benefits, and recommends optimal payment options, thereby improving selection accuracy without requiring customers to manually analyze complex contractual terms.
Solution Approach 2:
The system enables self-service by automatically performing the analysis of contract provisions, calculation of costs and benefits, and determination of optimal payment options. The system serves itself by retrieving data from financial institutions, processing the information, and presenting recommendations to the customer without requiring manual intervention in the analytical process.
2Measurement precision
If customers review all contract provisions before selecting payment options, then the accuracy of payment choice improves, but the time required for decision-making increases
Solution Approach 1:
The system performs preliminary action by pre-retrieving and pre-processing contract provisions, costs, and benefits before the customer needs to make a payment decision. The system maintains updated information from financial institutions and prepares analysis results in advance, so that when a payment decision is needed, the customer receives immediate recommendations without having to review contracts in real-time.
Solution Approach 2:
The patent replaces the mechanical process of manual contract review and calculation with an automated electronic system. Instead of customers manually reading and analyzing contract provisions, the system electronically retrieves contract data, calculates costs and benefits, and presents optimized payment recommendations, significantly reducing decision-making time while maintaining high accuracy.
3Loss of information
If the system provides detailed cost and benefit analysis for all payment options, then the completeness of information improves, but the complexity of information processing increases
Solution Approach 1:
The system segments the complex payment decision problem into distinct modules: retrieving contract provisions, calculating costs, calculating benefits, comparing options, and generating recommendations. Each module handles a specific aspect of the analysis independently, making the overall information processing manageable and systematic while providing complete analysis of all payment options.
Solution Approach 2:
The system incorporates feedback mechanisms by continuously updating contract provisions, costs, and benefits from financial institutions and using this feedback to refine future analysis. The system learns from customer selections and adjusts its recommendations accordingly, ensuring that the information processing remains efficient while maintaining completeness through iterative improvement.
Data Source
AI summary
A method for performing a financial transaction that includes identifying a plurality of payment options associated with a payer executing the financial transaction, wherein each of the plurality of payment options is linked to a financial account of the payer, obtaining cost data and benefit data for each of the plurality of payment options, wherein the cost data includes a cost of using the payment option for the financial transaction and the benefit data includes a benefit of using the payment option for the financial transaction, selecting a preferred payment option from the plurality of payment options for the financial transaction based on the cost data and the benefit data, and processing the financial transaction using the preferred payment option to obtain a transaction confirmation.