Electronic Payment Instrument System for Delivery Agents

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Solution Overview

Problem

Current payment systems for delivery agents in pay-on-delivery orders are insecure, involve handling charges, and have time-consuming reconciliation processes, leading to risks such as loss or theft of cash.

Innovation Solution

A computer-implemented method and system that uses a payment instrument provided to delivery agents by an order delivery entity to facilitate real-time credit transactions for paying merchants, eliminating the need for physical cash and reducing risks.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If cash is provided to delivery agents for pay-on-delivery orders, then payment transactions can be performed, but security risks and loss of cash occur

Engineering Contradiction:

Improvepayment transaction securityVSAvoidcash handling risks

Core Design Contradiction:

ReliabilityVSObject-affected harmful factors

Solution Approach 1:

The patent replaces the mechanical cash-based payment system with an electronic payment instrument system. The server system electronically credits payment instruments to delivery agents, eliminating the need for physical cash handling while maintaining payment functionality. This substitution resolves the security risks associated with cash by transitioning to a digital infrastructure that tracks and controls funds electronically.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The patent introduces a server system as an intermediary between the order delivery entity and delivery agents. This intermediary manages the payment instruments, credentials, and transaction processing. The server system acts as a mediator that issues payment instruments to delivery agents and facilitates transactions with merchants, thereby eliminating direct cash handling and reducing security risks.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Productivity

If cash is handled for payment transactions, then payment can be collected, but handling charges and reconciliation time are incurred

Engineering Contradiction:

Improvereconciliation speedVSAvoidreconciliation time

Core Design Contradiction:

ProductivityVSLoss of time

Solution Approach 1:

The patent implements continuous electronic tracking of payment instruments and transactions through the server system. Unlike cash reconciliation which requires periodic manual processes, the electronic system continuously monitors transaction status, payment instrument balances, and transaction histories. This continuous digital tracking eliminates reconciliation time delays and manual counting processes.

Inventive Principle:

Principle #20Continuity of useful action

Solution Approach 2:

The patent replaces manual cash reconciliation processes with automated electronic verification. The server system automatically validates payment transactions, verifies payment instrument credentials, and tracks fund transfers. This automated mechanical substitution eliminates manual reconciliation efforts, reducing both time consumption and operational complexity.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Reliability

If payment instruments are provided to delivery agents, then cash handling is eliminated, but system complexity increases

Engineering Contradiction:

Improvepayment securityVSAvoidpayment system structure

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent designs the payment instrument system to serve multiple functions: it acts as a payment method, a tracking mechanism, a security credential, and a transaction record. The server system manages issuance, validation, and monitoring of payment instruments, which can be used for various payment scenarios. This multi-functionality reduces the need for separate systems for each function, thereby managing complexity while improving security.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The server system serves as a centralized intermediary that manages the complexity of the payment instrument system. It handles credential generation, validation, transaction processing, and security protocols. By concentrating these complex functions in a dedicated intermediary system, the patent simplifies the overall architecture and reduces the operational burden on individual components while maintaining high security standards.

Inventive Principle:

Principle #24Intermediary (Mediator)

Data Source

PatentUS12271903B2Methods and systems for facilitating payment transactions to delivery agents

Publication Date: 2025.04.08 MASTERCARD INT INC

AI summary

Embodiments provide electronic methods and systems for facilitating payment transactions to delivery agents. The method performed by a server system includes obtaining order related data associated with an order placed by a customer with a merchant. The method includes determining whether a payment transaction amount is within one or more transaction threshold limits or not. Further the method includes facilitating a credit transaction by an issuer server for effectuating a transfer of the payment transaction amount to a payment instrument of a delivery agent. The method further includes receiving a payment transaction request in response to using the payment instrument at a payment terminal associated with the merchant. The method includes transmitting a payment authorization request message to the issuer server. The issuer server authorizes the payment transaction request based on the unique reference identifier, thereby enabling transfer of the payment transaction amount from the payment instrument to the merchant.