Real-Time Payment Funds Availability Processing Mechanism
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Solution Overview
Problem
Conventional payment methods do not allow billers to access payment funds in real-time after a customer initiates a payment, leading to delays in financial transactions.
Innovation Solution
A system and method for real-time determination of funds availability, which involves a processing mechanism communicating with multiple depository financial institutions to assess the likelihood of payment by sending and receiving inquiries and responses, providing a payment likelihood indicator based on current account status and balance, enabling immediate decision-making on transaction approval or denial.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of time
If conventional payment methods are used, then billers can process payments through financial institutions, but the biller cannot access payment funds in real-time after customer initiates payment
Solution Approach 1:
The system performs preliminary actions by establishing real-time communication channels and data exchange protocols between financial institutions before transactions occur. This allows the biller's financial institution to proactively query the customer's financial institution for funds availability information before the customer actually initiates payment, so that when payment is initiated, the information is already available or can be obtained immediately.
Solution Approach 2:
The system implements a feedback mechanism where the biller's financial institution sends inquiries to the customer's financial institution regarding account status and funds availability, and receives real-time responses. This continuous feedback loop provides up-to-date information about the customer's ability to pay, enabling the biller to make immediate decisions about transaction approval or denial without traditional processing delays.
2Speed
If real-time inquiry and response system is implemented, then funds availability can be determined immediately, but system complexity increases
Solution Approach 1:
The processing mechanism is designed with multi-functionality to handle various types of financial institutions, account types, and transaction scenarios through a single unified system. The system can universally communicate with different financial institutions using standard protocols, determine funds availability for multiple account types (checking, savings, etc.), and support various biller needs, thereby reducing the need for multiple specialized systems and lowering overall complexity.
Solution Approach 2:
The system acts as an intermediary between the biller's financial institution and the customer's financial institution. Rather than requiring direct complex integration between all possible financial institutions and billers, the processing mechanism serves as a mediator that standardizes communication, translates between different institutional systems, and manages the inquiry-response workflow, thereby simplifying the overall system architecture.
3Productivity
If payment likelihood indicator is provided based on current account status, then immediate transaction decisions can be made, but data communication requirements increase
Solution Approach 1:
The system extracts only the essential and most relevant information needed for transaction decision-making, such as current account balance, account status, and funds availability indicators. Rather than transmitting complete account histories or all possible account data, the system selectively extracts and communicates only the critical data points required to determine payment likelihood and enable immediate transaction decisions.
Solution Approach 2:
The system provides locally optimized data communication by tailoring the information exchanged to the specific needs of each transaction context. The inquiry and response messages contain only the specific account status and funds availability information relevant to that particular payment transaction, rather than universally transmitting all possible account data. This local quality approach ensures that data communication volume is minimized while still providing sufficient information for immediate decision-making.
Data Source
AI summary
A method including receiving a debit message at a first financial institution to debit a first account maintained by the first financial institution based on a payment authorization for a payment amount made by a sender at a payment authorization time, the first account being held by the sender. The method also can include performing a successful debit for the payment amount from the first account maintained by the first financial institution in real-time after the payment authorization time. The method additionally can include sending a debit response from the first financial institution in real-time after the payment authorization time. Other embodiments are provided.