Payment Intermediary System for International Fund Transfers
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Solution Overview
Problem
Current financial transfer methods, such as bank wires and money transfers, face issues like high transaction costs, lengthy processing times, lack of transparency, and the need for physical forms and repeated submissions of information, which hinder efficient international fund transfers and can lead to additional travel and administrative burdens.
Innovation Solution
A system comprising a receiving subscriber interface, a sending subscriber interface, and an agent server that facilitates financial transfers by accepting invoice and payment information, creating invoices, and transferring funds between source and destination accounts via different networks, reducing the need for physical interactions and enhancing transparency.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If bank wires or money transfers are used for international fund transfers, then funds can be transferred between different banks and countries, but transaction costs are high and processing time is lengthy
Solution Approach 1:
The patent introduces a payment intermediary system that acts as a mediator between sender and receiver banks. This intermediary maintains pre-established credit lines and account relationships, allowing instant fund transfers without traditional bank wire processing. The intermediary validates transactions and settles funds electronically, reducing processing time from multiple days to minutes while maintaining transfer reliability.
Solution Approach 2:
The system establishes pre-approved credit lines and pre-configured payment relationships between participants before actual transactions occur. Accounts are pre-validated and authorized for specific transfer amounts and currencies. This preliminary setup eliminates the need for real-time verification during transactions, enabling instant fund transfers without lengthy processing.
2Reliability
If traditional bank wire or money transfer services are used, then international fund transfers can be completed, but transaction costs are high due to special service nature
Solution Approach 1:
The payment intermediary system serves multiple functions: it acts as a clearinghouse, credit provider, transaction validator, and settlement agent simultaneously. By consolidating these functions into a single multi-functional platform, the system eliminates the need for multiple separate services and their associated fees. Participants pay a single standardized fee rather than multiple charges from different banks and intermediaries.
Solution Approach 2:
The patent merges the functions of sender bank, receiver bank, clearinghouse, and settlement agent into a single integrated payment intermediary system. This consolidation eliminates redundant processing steps and multiple handling fees that characterize traditional bank wires. The unified system processes transactions internally without external transfers, reducing costs while maintaining transfer reliability.
3Reliability
If bank wires or money transfers are used, then funds can be transferred internationally, but physical paper receipts are required and information must be manually entered into accounting systems
Solution Approach 1:
The patent replaces manual paper-based receipt handling with automated electronic data processing. The payment intermediary system automatically generates electronic transaction records, validates account information, and integrates directly with participants' accounting systems through API connections. This eliminates the need for manual data entry and physical paper receipts, reducing administrative burden while maintaining transfer reliability through automated validation.
Solution Approach 2:
The system creates automated electronic copies of transaction data that are directly transmitted to accounting systems. Instead of manual transcription from paper receipts, the intermediary generates digital transaction records that are automatically imported into participants' ledgers. This electronic copying process eliminates manual entry errors and reduces administrative work while preserving accurate transfer records.
4Reliability
If traditional transfer methods are used, then funds can be transferred between accounts, but lack of transparency in fees and timing occurs
Solution Approach 1:
The payment intermediary system provides real-time feedback to participants about transaction status, fees applied, and expected completion times. Before authorizing a transfer, the system displays all associated costs and timing information. During processing, participants receive automated updates on transaction progress. This continuous feedback loop eliminates information asymmetry and provides full transparency while maintaining transfer reliability.
Data Source
AI summary
A system for making financial transfers between subscribers of a financial transfer service is disclosed. The system may include a receiving subscriber interface (RSI), a sending subscriber interface (SSI), and an agent server (AS). The RSI may be configured to accept a set of invoice information including an identifier of a destination account. The SSI may be configured to accept a set of payment information including an identifier of a source account. The AS may be configured to receive the set of invoice information and create an invoice based on the set of invoice information. The AS may also be configured to transmit the invoice and receive the set of payment information. The AS may also be configured to cause an amount of funds to be transferred from the source account on a source transfer network to the destination account on a destination transfer network via a primary transfer network.