Payment Facilitation Device for Merchant Collection Network

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Solution Overview

Problem

Merchants face challenges in controlling when they receive payments from customers, especially in remote transactions, as customers must proactively initiate payments, leading to potential delays and higher transaction fees.

Innovation Solution

A system and method that utilizes a payment facilitation device to locate nearby in-person payment devices, transmit collection requests, and facilitate payments from customers to these devices, ensuring timely and cost-effective payment processing to the merchant's account.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If merchants use remote payment collection methods, then customers can make payments from any location, but merchants have less control over when payments are received and experience higher transaction fees

Engineering Contradiction:

Improvepayment collection accessibilityVSAvoidpayment receipt timing control

Core Design Contradiction:

Adaptability or versatilityVSLoss of time

Solution Approach 1:

The system performs preliminary actions by notifying collecting entities in advance of the customer's location and payment details before the actual payment occurs. The payment facilitation device proactively identifies nearby collecting entities and prepares them to facilitate immediate payment, thus maintaining control over payment timing while enabling remote collection.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent introduces a payment facilitation device as an intermediary between the merchant and collecting entities. This intermediary coordinates the entire payment process, locating nearby collecting entities, transmitting collection requests, and routing payments, thereby giving merchants control over payment timing without requiring direct customer initiation.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Adaptability or versatility

If merchants use remote payment collection methods, then customers can make payments remotely, but transaction fees are higher compared to in-person payments

Engineering Contradiction:

Improveremote payment capabilityVSAvoidtransaction fees

Core Design Contradiction:

Adaptability or versatilityVSLoss of energy

Solution Approach 1:

The payment facilitation device acts as an intermediary that connects remote merchants with local collecting entities. By routing payments through nearby collecting entities who can process in-person payments, the system reduces transaction fees while maintaining remote payment capability for the customer.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The system creates a universal payment network where any collecting entity with an in-person payment device can facilitate payments for any merchant. This multi-functional network allows payments to be collected locally (reducing fees) while maintaining the convenience of remote shopping.

Inventive Principle:

Principle #6Universality (Multi-functionality)

3Ease of operation

If merchants wait for customers to proactively initiate payments, then customers have flexibility, but payment receipt is delayed and less controlled

Engineering Contradiction:

Improvecustomer payment initiation flexibilityVSAvoidpayment processing speed

Core Design Contradiction:

Ease of operationVSProductivity

Solution Approach 1:

The system performs preliminary actions by proactively identifying and notifying collecting entities about pending payments before customers would normally initiate them. This allows the merchant to control the payment timing while the customer retains flexibility in how they complete the payment.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

Instead of waiting for the customer to initiate payment (traditional approach), the system inverts the process by having the payment facilitation device proactively reach out to collecting entities with payment details, thus reversing who takes the proactive step while maintaining customer convenience.

Inventive Principle:

Principle #13The other way round (Inversion)

Data Source

PatentUS9984359B1Method and system for a network of merchants collecting payments for each other

Publication Date: 2018.05.29 INTUIT INC

AI summary

A method and system for obtaining payment from a customer that includes receiving a collection request at a payment facilitation device from a payment collection request device of a merchant, storing the collection request in a collection request repository, determining, using the collection request, a location of the customer, and determining, using the location of the customer, that an in-person payment device of a collecting entity is located near the location of the customer. The method also includes transmitting a notice of collection request to the in-person payment device and receiving a payment request from the in-person payment device at which the customer made a payment via the in-person payment device after the notice of collection request was received by the in-person payment device. Additionally, the method includes transmitting, based on the payment request, a payment to a merchant account associated with the merchant.