Payment Hub Standardization for Dynamic Routing
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Solution Overview
Problem
Current financial payment processing systems in the US and internationally are inefficient due to the use of separate product silos for different payment types, which do not account for cost efficiency, timeliness, or customer needs, leading to suboptimal payment routing and processing.
Innovation Solution
A comprehensive payment processing system that standardizes all payment requests into a single format, allowing for dynamic routing based on cost, time, and risk factors, using ISO 20022 universal financial industry message schemes, and incorporating modules for payment routing, risk assessment, compliance, and exception handling.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If separate product silos are used for different payment types, then each payment type can be processed with specific logic and hardware, but the system complexity increases and processing efficiency decreases
Solution Approach 1:
The patent merges multiple separate product silos into a single payment hub that processes all payment types through a unified architecture. The payment hub consolidates previously separate processing paths for wire transfers, ACH, checks, and other payment methods into one integrated system that handles diverse payment types without requiring separate dedicated infrastructure for each.
Solution Approach 2:
The payment hub is designed as a universal processing system that can handle multiple payment types through a single interface. It provides multi-functional capabilities by accepting various payment formats (electronic, paper, image) and routing them through standardized processes, eliminating the need for payment-type-specific hardware and logic.
2Ease of operation
If payments are pre-dispositioned into specific product silos, then routing decisions are simplified, but cost efficiency and timeliness optimization are reduced
Solution Approach 1:
The payment hub implements dynamic routing that adapts to each payment's specific characteristics, cost considerations, and timeliness requirements. Instead of static pre-dispositioning, the system evaluates multiple factors in real-time to determine the optimal processing path, allowing routing decisions to be flexible and responsive to changing conditions.
Solution Approach 2:
The system changes routing parameters based on payment type, cost efficiency requirements, and timeliness needs. The payment hub adjusts processing parameters dynamically, selecting different processing speeds, routing paths, and handling methods depending on the specific payment characteristics and organizational priorities for each transaction.
3Productivity
If individual product silos process payments autonomously, then each silo can be optimized for its specific payment type, but overall system integration and coordination are worsened
Solution Approach 1:
The payment hub maintains segmented processing capabilities for different payment types while providing unified coordination. Each payment type can be processed through specialized logic and procedures within the hub, preserving the benefits of type-specific optimization while eliminating the need for completely autonomous siloed systems that lack integration.
Data Source
AI summary
Systems, methods, and computer program products are provided for conducting comprehensive payment processing of all payment requests regardless of the payment request channel. Payment requests are transformed from the initial format to a standardized format, which allows for the occurrence of further comprehensive payment processing, referred to herein as payment hub processing. Once the payment request has undergone necessary payment hub processing, the request undergoes further transformation/conversion from the standardized format to a target clearing format. In one embodiment of the invention, the processing hub provides for determining the clearing or remittance channel based on payment routing rules, which may take into account cost, time, risk and any other payment factors.