Payment Entity Device Automating Transaction Processing
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Solution Overview
Problem
Current credit card transaction processing systems require significant business involvement for payment initiation, tracking, and reconciliation, and are limited by the need for multiple issuer banks, leading to processing bottlenecks and disjointed payment processes.
Innovation Solution
A payment entity device integrates with proprietary transaction processing networks and client financial institutions to automate the payment and reconciliation process, allowing businesses to set up a payables profile that determines optimal payment methods and terms, facilitating seamless payments across various payment types without direct involvement in the payment process.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If multiple issuer banks are used in credit card transaction processing, then payment options and reliability are improved, but processing complexity and bottlenecks increase
Solution Approach 1:
The patent introduces an intermediary system that consolidates multiple issuer bank connections into a single interface for merchants. This intermediary handles the complexity of routing transactions to different issuer banks while presenting a unified payment method selection to the merchant, thereby maintaining reliability through multiple issuers while reducing processing complexity at the merchant level.
Solution Approach 2:
The system creates a universal payment interface that can handle multiple payment types (credit cards from different issuers, checks, wire transfers, ACH debits) through a single integrated platform. This multi-functional approach allows the system to maintain reliability across different payment methods while reducing the complexity of managing separate processing systems for each payment type.
2Loss of information
If businesses directly initiate and track payments, then control and visibility are improved, but operational burden and time consumption increase
Solution Approach 1:
The system implements self-service capabilities where the payment processing platform automatically initiates, tracks, and reconciles payments without requiring direct business involvement in each step. The platform autonomously manages the payment lifecycle while providing visibility to businesses through integrated software, thereby maintaining information visibility while eliminating time-consuming manual operations.
Solution Approach 2:
The system establishes automated feedback loops that provide real-time payment status information back to businesses through integrated software. This feedback mechanism ensures businesses maintain visibility into payment tracking while the system handles the time-consuming aspects of initiation and monitoring automatically, resolving the contradiction between visibility and time consumption.
3Productivity
If payment processing is integrated with procurement software, then operational efficiency is improved, but system complexity increases
Solution Approach 1:
The patent merges payment processing capabilities directly into procurement and accounting software platforms. By combining previously separate functions (procurement, payment initiation, payment tracking, and reconciliation) into a single integrated system, the solution improves operational efficiency while managing complexity through unified architecture rather than multiple interconnected systems.
Data Source
AI summary
A method begins with a payment entity device receiving an accounts payable data file from a client entity processing module. The method continues with the payment entity device determining a method of payment for an account payable of the accounts payable data file in accordance with a payables profile. The method continues with the payment entity device initiating a first type of payment for the account payable when the method of payment is a first type; initiating a second type of payment for the account payable, when the method of payment is a second type, or initiating a third type of payment for the account payable when the method of payment is a third type.